No transfer tax for the purchase of a national monument and more deductions

Buy a national monument, because this is often fiscally advantageous. In 2011 and 2012 (2013, 2014 and 2015 no longer), 58 million euros is also available through the BRIM subsidy program. Apply for a subsidy for your national monument and calculate your tax benefit. I will give you two calculation rules to calculate this deduction. You paid no transfer tax until 2010 and have tax deductions for your income tax return. From June 15, 2011 you will pay 2% transfer tax instead of 6%.

Buy a monument

In our country we have four types of monuments, each with their own properties and qualifications:

1. A national monument

A national monument is designated and protected by the government. The 55,000 national monuments in our country are legally protected through the Monuments Act. National monuments are at least 50 years old and have cultural and historical value. You need a separate permit if you want to renovate. The government is working hard to reduce the number of permits required to modify a national monument. National monuments fall under the Monuments Act of 1988.

2. A provincial monument

A provincial monument is designated by the province and is on the provincial monument list. The province of Limburg has an independent provincial heritage policy.

3. A municipal monument

A municipality can put a building on the municipal monument list if a building is of local or regional importance.

4. A protected cityscape or protected villagescape

A protected cityscape or protected villagescape is an environment with buildings that have so-called image-defining historical characteristics. This environment, built and unbuilt, is additionally protected by imposing additional rules on a zoning plan or permit.

No transfer tax when purchasing a national monument until January 1, 2010 and after that subsidy

Since May 1, 2009, everyone no longer has to pay transfer tax for the purchase of a national monument. For example, the transfer tax as a penalty for moving was temporarily abolished. That saves you 6 percent in tax. On a property worth 300,000 euros, that is 18,000 euros. So worth it. This is a temporary measure until January 1, 2010 following a court ruling and does not apply to the other monuments. Previously, the requirement was that the buyer had to aim for the maintenance of monuments for 25 years. In practice, this meant that they had to own at least one national monument for 25 years. This requirement has now lapsed: even if the monument is sold within 25 years, the exemption from transfer tax is retained.

Extra subsidy since January 1, 2010

The abolition of the transfer tax exemption is estimated at 23 million euros per year. These amounts have been added to the budget of the Ministry of Education and Science for 2010 and 2011, while the transfer tax has simply been reset to 6%. As of 2011, 58 million is available. For 2010, the distribution of subsidy funds is as follows:

  • 15 million for repurposing and major restorations.
  • 8 million for historic preservation organizations.

Transfer tax from June 15, 2011 to 2%

The transfer tax has been reduced to 2% for more than a year for the period June 15, 2011 to July 1, 2012. Reclaiming the higher transfer tax paid for this from the tax authorities will not be possible. After all, on June 10, 2011, the Supreme Court ruled in a case brought by a private buyer to fully recover the transfer tax already paid. The buyer involved had paid 6% for his national monument in 2008 and believed that the May 2009 ruling should apply retroactively. The Supreme Court rejected this claim.

Subsidy National Monument 2011 via the new BRIM

From January 15, 2011, you can apply for a conservation subsidy via the new BRIM, the National Subsidy for the Conservation of Monuments Decree. You no longer need to send a financial coverage plan. In addition to the subsidies, you can also opt for a low-cost loan from the National Restoration Fund. A total of 58 million euros is available in 2011 to subsidize national monuments. In 2011, for the first time, subsidies are also available for archaeological national monuments, such as prehistoric burial mounds or dolmens. In 2011, fewer categories will be distinguished and the application for subsidy has been further simplified. The three categories are:

  • Church buildings.
  • Residential houses.
  • Other monuments.

Not every category is eligible for the same amount of subsidy in percentage terms:

  • Church buildings can qualify for a subsidy for a maximum of 65 percent of the costs.
  • Houses and other monuments can receive a subsidy of up to 60 percent.

If you want to know whether you are eligible for the subsidy, you can complete a simple test developed by the Cultural Heritage Agency.

Conditions for National Monument subsidy

Conditions for a subsidy for a monument are:

  • The subsidy is necessary to maintain the monument.
  • The so-called conservation plan, which must be submitted with the application, must be sober and effective.
  • This conservation plan covers a period of six years.
  • A structural inspection report is attached to your application. This report may not have been drawn up earlier than two years prior to the first year to which the application relates.
  • You do not already receive a subsidy under another government subsidy scheme and the costs incurred are not otherwise covered by third parties, for example through insurance.
  • Prior to the submission of the application, work to restore the monument may not have begun.

How many tax costs can I deduct for a listed building in 2011 and 2012?

I will give you two calculation rules for the tax deductibility of the costs of refurbishing a monument. For when the monument is also your own home and when it is your second property:

calculation rule for own home

The formula for a monument as a main residence is the following: F = K- 0.0075*W where: F = Tax deductible amount. K = costs for maintenance or conservation. W = WOZ value. It may look a bit complicated, but the bottom line is that you can deduct the costs minus 0.75% of the appraised value according to the Real Estate Valuation Act.

calculation rule for second home

A second home comes in box 3 of the income tax. The tax authorities assume that you make a return of 4% on your assets, for which you must correct. This gives the following formula: F = K- 0.04*E where: F = Tax deductible amount. K = costs for maintenance or conservation. E = Economic value. So you take the costs of maintenance and improvements and reduce them by 4 percent of the economic value of your second home.

How much is the tax deduction for a national monument in 2013?

The options for a large tax deduction have been further limited in 2013:

  • deduction National Monument 2013, income tax;

Key lock

Anyone who buys a national monument also buys all kinds of tax benefits. You are bound by different rules than the owner of a normal owner-occupied home, but you can also benefit from them. Always make sure you are well informed about the possibilities of the property you have in mind. From 2011 and 2012 onwards, make use of the simplified subsidies from the BRIM and the tax benefits, such as the reduced transfer tax until July 1, 2012. This will end in 2013.