Since 2026 Dutch residential investment property carries 8% transfer tax, commercial 10.4%; Luxembourg charges 7%, or 10% in Luxembourg City, whoever buys. Owned personally, Dutch property sits in box 3 on a deemed return; in a B.V. the real rental profit is taxed at 19% to 25.8%, and again when paid out. For one property personal ownership is usually simpler; for a growing portfolio a company starts to pay.
Buying property personally or through a company
Foreign buyers of Dutch and Luxembourg property usually ask one question: in my name or through a company? The answer depends on the transfer tax, how rent is taxed each year, what happens on sale, and whether the money stays invested or comes out.
8% residential investment
Since 2026; 10.4% commercial, 2% own home.
7%, or 10% in Luxembourg City
Same for persons and companies.
Box 3
Tax on a deemed return, actual return from 2028 onwards.
Corporate tax on real profit
19% to 25.8% in NL; about 23.87% in Luxembourg City.
Dutch property: personal or B.V.
| Personally | Through a B.V. | |
|---|---|---|
| Transfer tax | 8% residential investment, 10.4% commercial | Same rates |
| Yearly tax | Box 3: deemed 6% return taxed at 36% in 2026; the 2027 plan raises it | Corporate tax on rent minus costs and interest: 19% / 25.8% |
| Depreciation | None | Limited: not below the WOZ value for investment property |
| Profits out | Already taxed | Box 2 at 24.5% / 31%, or dividend withholding for foreign owners |
| Non-residents | Box 3 on Dutch property | Dutch corporate tax on Dutch property |
| Selling shares | n/a | Transfer tax applies to shares in property companies |
Luxembourg property: personal or company
| Personally | Through a company | |
|---|---|---|
| Registration duties | 7%, 10% in Luxembourg City; Bëllegen Akt credit for your own home | 7%, 10% in Luxembourg City; no credit |
| Rental income | Progressive income tax after costs and depreciation | Corporate tax about 23.87% in Luxembourg City |
| Gain on sale | Taxed in full within 2 years, at half the rate afterwards with allowances | Corporate tax on the gain |
| Profits out | Already taxed | Withholding and shareholder tax at home |
| Funds holding Luxembourg property | n/a | 20% real estate levy on Luxembourg property income of funds |
For one flat, buy it in your own name. For a portfolio you will keep growing, the company starts to pay.
Compare personal and company ownership
Indicative: costs at 25% of rent, no financing, 2026 rates.
Property: personally or through a company?
Pick the country and the property. You see the transfer tax and an indicative yearly tax for each way of buying.
For residential investment property.
For every buyer.
Personal NL ownership is taxed on a deemed return.
Property companies pay transfer tax too.
Property through a company: frequent questions
What is the Dutch transfer tax on investment property in 2026?
8% for residential property bought as an investment or second home since 1 January 2026, down from 10.4%. Commercial property stays at 10.4%; own homes are 2%, or 0% for qualifying starters.
Should I buy Dutch rental property through a B.V.?
Personally, Dutch residents and non-residents pay box 3 on a deemed return; in a B.V. the actual rental profit is taxed at 19% up to EUR 200,000 and 25.8% above, with tax again when profits are paid out. For larger portfolios and reinvestment the B.V. often wins.
What are the registration duties on Luxembourg property?
7% in total (6% registration and 1% transcription), plus a municipal surcharge in Luxembourg City that brings it to 10%. Individuals buying their own home can use the Bëllegen Akt tax credit; companies cannot.
Can a foreign company own Luxembourg or Dutch property?
Yes. Rental income and gains are taxed where the property is, under the treaties, whatever the owner's residence.
Does selling shares in a property company avoid transfer tax?
Not in the Netherlands: transfer tax also applies to shares in real estate companies above a one-third interest. Luxembourg share deals are generally outside registration duties, but anti-abuse rules and future reforms need checking.