Cabinet response to evaluation of investment institutions: real estate measure postponed to 2025 | News item

News item | 09-12-2022 | 3:30 pm

The government has decided that the measure announced on Budget Day this year that a so-called fiscal investment institution (FBI) may no longer invest directly in Dutch and foreign real estate will be postponed by one year to 1 January 2025. This was announced in the government’s response to an evaluation report of SEO about the fiscal investment institution (fbi) and the tax-exempt investment institution (vbi).

The Economic Research Foundation (SEO) has been commissioned by the Ministry of Finance to evaluate the effectiveness and efficiency of the regulations for the FBI and VBI in corporation tax. These regulations mean that, subject to certain conditions, a zero rate applies to the FBI and an exemption from corporate income tax (VPB) applies to the VBI. SEO’s evaluation report was presented to the Senate and House of Representatives on 7 July 2022 and concludes that the regulations regarding real estate investments can be arranged more efficiently.

Real estate measure

Based on the so-called real estate measure, an FBI is no longer allowed to invest directly in Dutch or foreign real estate. As a result of the proposed measure, the profit of a fiscal investment institution that mainly invests in real estate (property federations) will be taxed at the regular corporate income tax rate from 1 January 2025. The real estate measure has no consequences for the securities feds. Indirect investing through a company that in turn holds real estate is therefore still possible. An FBI can therefore (continue to) invest in real estate by holding shares in a regularly taxed subsidiary (property investment subsidiaries).


With the postponement of the entry into force of the real estate measure to 1 January 2025, the government wants to offer the practice sufficient time and perspective for action to anticipate the consequences of this measure. Representatives of FBIs and (institutional) investors have indicated that they need 9 to 12 months to restructure and to be well prepared for this measure. In addition, the delayed entry into force of the real estate measure is related to the government’s decision to provide an accompanying measure for transfer tax that will apply from 1 January 2024. This concerns a conditional exemption from transfer tax during the year 2024 for restructuring that is directly related to the real estate measure.

Internet consultation

The measures resulting from the evaluation, including the accompanying measure, will be further elaborated in a bill in the coming period. An internet consultation will take place in this context in the first quarter of 2023. The government aims to submit the bill to the House of Representatives on Prinsjesdag 2023.