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Property Tax in the Netherlands

Property Tax in the Netherlands

Updated on Wednesday 14th September 2016

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property-tax-in-the-netherlands.jpgForeign entrepreneurs and individuals are keen to acquire property in the Netherlands for investment or relocation reasons, or simply for their children’s education. When engaging in such an investment, it is important to know what the property taxes are in the Netherlands. Our Dutch accountants specialise in advising our clients on the matter.

What are the property taxes and the transfer tax in the Netherlands?

Immovable real estates are taxed a property tax in the Netherlands which is due yearly and is set by the local municipalities. This tax represents a fraction of the property value – approximately a per mille – as estimated yearly by the local city hall. This property estimation is called a WOZ value. 
A non-resident tax payer (an individual who does not reside in the Netherland and invests in Dutch real estate) must pay a 1.2% taxation over the WOZ value minus a loan, if applicable, made to purchase the property. In case a loan was not made, the property taxation in the Netherlands for a non-resident is of 1.2% of the WOZ value. Our accountants in the Netherlands can provide more details on this issue.
Another property tax in the Netherlands is the transfer tax. When buying a property in the country, the buyer has to pay such a tax which is of 2% of the market value of a home bought as a private residence and of 6% of the property market value for other types of immovable real estate. Our Dutch accountants can offer more details on this issue.

Deductions of the property tax in the Netherlands

Interest payments on mortgages are deductible from the property tax in the Netherlands if the property is used as a principal residence and if the owner is a registered resident of the country. Mortgage interest can be deducted over the amount of the mortgage, except for any the portion of the loan utilized to acquire furniture or any other type of consumer products. This refund can be demanded in advance and refunded monthly.
Residents of the Netherlands can deduct their mortgage interest pay only on their main residence and have to pay a wealth taxation on any other supplementary real estates they own in the country. Partial non-residents, though, can deduct the mortgage interest pay on their main residence, however they do not pay the wealth taxation on other real estates they own in the Netherlands.
We invite you to get in touch with our accountants in the Netherlands for any further information on the Dutch property tax.


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