How much does a vacation home really cost? A breakdown of all the purchase costs!

Discover all the hidden costs involved in buying a vacation home: from transfer tax and notary fees to VAT and tax pitfalls.

The time has come. After a long search, you’ve finally found the perfect vacation home. The photos look promising, and at first glance, the price seems reasonable. But as soon as you dive deeper into the process, it turns out there are all sorts of extra costs involved: notary fees, taxes, and sometimes even fines or additional tax assessments. Many buyers aren’t aware of these costs beforehand and only find out after they’ve signed the contract—by which time it’s too late. That’s a shame—and unnecessary. In this blog, we’ll give you a clear overview of the most common additional costs involved in purchasing a vacation home, so you can enter the process with realistic expectations and a stronger negotiating position.

On Funda or real estate listing websites, you’ll often see terms like V.O.N. (Vrij Op Naam) or K.K. (Kosten Koper). Those few letters make a big difference to your wallet. With V.O.N., any additional costs such as VAT, transfer tax, and notary fees are included in the asking price. What you see is what you pay.

But with K.K., there may be quite a few additional costs on top of that. For example:

• VAT (Value-Added Tax) (21% in the Netherlands)
• Transfer tax (currently 10.4% for recreational use)
• Notary and land registry fees (€1,500 to €2,000)
• Lot survey fees (often €700–€1,000 for new construction)

A home listed at €250,000 (costs payable by the buyer) could end up costing you €279,000 or more. So always check carefully what is and isn't included in the price.

The amount of transfer tax depends on the situation. In 2025, the rate is 10.4%, but it will likely be 8% in 2026. However, there are many exceptions and exemptions:

• Concurrent Exemption: Are you buying a home that was first occupied less than six months ago and on which VAT has been paid? If so, you won’t have to pay transfer tax.
• Personal property (such as furniture) is exempt from the tax. Be sure to have these items clearly listed in the purchase contract to keep your transfer tax as low as possible.

We regularly see buyers who initially purchase only the vacation home and lease the land. Only later do they decide to buy the lot as well. There’s nothing wrong with that in itself, as long as you realize that this has tax implications for your final purchase price. This is certainly true when purchasing a home that’s already in use on leased land.  

A movable property, such as a chalet or mobile home on leased land, is exempt from transfer tax. Real property, such as a brick house, prefab home, or chalet with a foundation on privately owned land, is subject to transfer tax once it has been in use for more than six months. Simply put: if you buy a new chalet on privately owned land, the home, its fixtures and fittings, and the land are generally transferred without transfer tax. You will, however, pay VAT on this purchase. Are you selling your vacation home and land within six months of first taking it into use? In that case, the new buyer generally does not have to pay transfer tax. This is due to the so-called “concurrence exemption,” under which a property can be resold without transfer tax, provided that the resale takes place within six months of first taking it into use and the initial sale was subject to VAT. Suppose you first buy a vacation home that was occupied more than six months ago and then purchase the land. This situation is incredibly common and leads to many unpleasant surprises. When you buy a used vacation home on a leasehold lot, it is typically sold as personal property, meaning no transfer tax is charged. However, if you later purchase the land as well, the property may suddenly be classified as real estate. The result? You’ll pay transfer tax on the purchase price of the land, but you’ll also receive a back-tax assessment on the original purchase price of the property. So always seek expert advice on this matter to ensure you factor any potential back-tax assessment into your offer.

For new construction completed within two years, you usually pay 21% VAT instead of transfer tax. But what if you rent out the property commercially? In that case, you can claim a refund of that VAT as a VAT-registered business, without having to register with the Chamber of Commerce. The condition is that you:

• Make the property available primarily for rental (at least 90%)
• You register as a business owner with the Tax Authority
• File periodic VAT returns

Please note: If you sell the property within 10 years, you may have to repay (part of) the VAT you claimed back (revision period). Solution? Supply the property to another VAT-registered business under the 37D scheme. The revision period will then continue as usual.

Are you buying a mobile home on leased land as a VAT-registered business? In that case, you can also claim a refund of the 21% VAT. But be aware: if you resell it, you’ll have to pay that VAT back, even after 5 years. Unless you switch to the Small Business Scheme (KOR). Then you won’t have to pay VAT anymore and you can sell it VAT-free.

If you purchase a vacation home in the name of a limited liability company (BV) or a sole proprietorship, you’ll be taking a more professional approach to this type of investment. This has several advantages:

• More tax deductions (such as depreciation)
• No capital gains tax (BOX 3)

However, there are also disadvantages:

• Capital gains on sales are subject to tax
• Personal use is limited, or you'll have to pay dividend tax on it
• If you sell to yourself (for personal use), you'll have to pay transfer tax again

If you’re buying as a private individual and register as a VAT-registered business, you’ll have more flexibility but fewer tax deductions. The best approach depends on your situation. Be sure to seek expert advice.

It all seems like a lot—and it is. But if you know what to look out for, you’ll be in a stronger position. Additional costs can amount to thousands of euros. Tax rules make the difference between a smart investment and a financial headache. Learn the terminology, ask the right questions, and make sure you get the right guidance.

Want to be sure you’re not overlooking thousands of euros when buying a vacation home? Then get personalized advice from a specialist. At Select Vakantievastgoed, we help you with clear calculations, honest comparisons, and insight into all costs—before you sign on the dotted line. Feel free to contact us with no obligation or view our current listings at www.selectvakantievastgoed.nl