New division exemption would be more limited than the current facility
A proposal to change the division exemption in real estate transfer tax was published and launched for consultation on 8 April 2024.
The new division exemption would be more limited than the current facility because it would be subject to the conditions that the property must be transferred as part of a business, that the business must be continued for three years, and that the acquired shares must also be held for three years. This would make it more difficult to separate business units with a view to a sale (carve-out).
However, a specific exemption would be introduced for so-called dispute divisions, for which no business requirement is stipulated. This would make it easier to set up personal holding structures and have (quarreling) shareholders of real estate companies go their separate ways.
Read an April 2024 report prepared by the KPMG member firm in the Netherlands that discusses the newly proposed division exemption in more detail.