Global

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  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/15/2013

The Netherlands - Tax provisions in housing reform proposal 

February 15:   The Dutch Cabinet and opposition parties reached an agreement on reforming the housing market—one that would include the following tax changes:
  • Mortgage interest deductions would only be available with respect to new home mortgages that are fully repaid within 30 years as part of an annuity repayment plan.
  • To lower the monthly costs in the first few years, persons could take a second mortgage for up to 50% of the property’s value and for a term of 35 years; however, the interest on this mortgage would not be tax deductible.
  • As of 1 March 2013, the rate of value added tax (VAT) on renovations and conversions of existing homes would be reduced from 21% to 6%, for a one-year period.

Read a February 2013 report prepared by the KPMG member firm in the Netherlands: Cabinet and opposition parties reach agreement on housing market reforms




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