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Netherlands: Worked Example of Tax on Rent

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Last Updated: Oct 03, 2006

Tax Example: Rent

Non-resident couple's joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income (4% notional yield)2 9,0003 41,4004 96,005
Income Tax Rates6
Flat Rate 30% 2,700 12,420 28,800
Annual Income Tax Due €2,700 €12,420 €28,800
Tax Due as % of Gross Income 15% 17.25% 20%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 2, 2006.


Notes

1 The property is jointly owned by husband and wife.

2 For income from investments, the tax is levied on the 4% notional yield of the investment.

3 The property is valued at €225,000. (€225,000 * 4% notional yield = €9,000).

4 The property is valued at €1,035,000. (€1,035,000 * 4% notional yield = €41,400).

5 The property is valued at €2,400,000. (€2,400,000 * 4% notional yield = €96,000).

6 The tax is levied at a flat rate of 30% on the 4% notional yield; resulting in an effective 1.2% tax on the average value of the assets per year.

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