In practice, it is possible for two successive related transfers to be effected by executing the two deeds of transfer in reverse order. This situation can occur, among other things, in so-called ‘Baarns beslag’ procedure. A policy decree dated 22 February 2017 confirms that the execution of deeds of transfer in reverse order can prevent parties from being due real estate transfer tax over real estate transfer tax.
According to the so-called resale rules, the base amount over which real estate transfer taxwhich is due, is reduced by the base amount over which real estate transfer tax was due in an earlier acquisition, if the second transaction takes place within six months of the first one. This term is currently 6 months. It is customary for the seller to claim this real estate transfer tax benefit, and for the buyer to reimburse seller for it. In principle, real estate transfer taxis due on this payment, also referred to as a charge (‘burden’), which means that essentially additional real estate transfer tax becomes due. For real estate transfer tax purposes, if t the deeds of transfer are executed in reverse order, that reverse order in principle also is also leading for real estate transfer tax (applies to the application of the resale rules),. The underlying idea is that B first conveys title to the real estate to C, so that C owes real estate transfer tax. Subsequently, A conveys title to the real estate to B on that same day. In that situation, the amount over which real estate transfer tax is payable by B is, under the resale rules, reduced by the amount of over which real estate transfer tax is due by C. As a result of executing the deeds of transfer in reverse order, C is, in fact, liable for the full amount of real estate transfer tax and the resale rules can be applied to the acquisition by B. This is in accordance with the agreement made between B and C. This way, no real estate transfer taxis levied on the payment/burden C would otherwise pay to B.