The Noord-Holland District Court ruled that the conversion of an object into a hotel did not result in essentially new construction. The thorough renovation did not lead to major changes in the architectural construction. X bv, the interested party, paid €4.5 million in transfer tax for the acquisition and argued for a €1.2 million tax refund, claiming that radical changes to the structural construction constituted new construction. However, the court disagreed, stating that the renovation did not result in significant changes to the structural construction. The court also noted that the installed interior walls and floor construction modifications did not qualify as adjustments to the structural construction.
Source Taxlive
