Netherlands: Taxes and Costs
Country Rating » 
In Depth
- Overview
- Price History
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Price Change 1 yr
- Price Change 5 yrs
- Price Change 10 yrs
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
- Taxes on Residents
Taxes are generally high in the Netherlands at 30%
Personal Income Tax (The ‘Box’ System)
Under the Dutch tax system, you will have not one, but three taxable incomes, each of which falls into a ‘box’. Each box has its own tax rate:
- Box 1: taxable income from work and home ownership, profits, social security benefits and pensions:
PROGRESSIVE TAX RATES for 2007 |
|
| TAXABLE INCOME (€) | MARGINAL TAX RATE |
| Up to €17,319 | 2.50% |
| €17,319 - €31,122 | 10.25% on band over €17,319 |
| €31,122 - €53,064 | 42% on band over €31,122 |
| Over €53,064 | 52% on all income over €53,064 |
- Box 2: taxable income from a substantial shareholding interest taxed at a fixed rate of 25%. For 2007, the first €250,000 is taxed at 22%.
- Box 3: taxable income from savings and investments (viz. real estate) levied at a fixed rate of 30%.
If a property is rented out , the taxation will take place in Box 3 at flat rate of 30% based on the assumption that a taxable yield of 4% is made on the net assets. The effect is an annual tax of 1.2% on the value of the assets.
Real Estate Tax
Real estate taxes (onroerendzaakbelasting) are based on the value of the property and are paid by both the owner and the user. Each municipality is entitled to determine its own tariffs for real estate taxes which are applicable for four years. The tariffs (owner and user tariff) for the real estate taxes are typically between 0.1% and 0.3% of the property value.
Other Taxes
Besides real estate taxes, municipal authorities levy other taxes and charges such as building charges that are related to building permits. Such charges can be very high so a critical review is advised before payments are to be made.
Other possible taxes include polder board taxes or land-draining rights, wastewater pollution tax and sewage system tax, sufferance tax, refuse matter tax, groundwater tax, ecological taxes and the energy tax. These taxes and their rates vary from municipality to municipality, so consultation with makelaar or notaris is necessary.
Capital Gains Tax
No capital gains tax is levied on the profits realized on the sale of Dutch real estate owned by a non-resident individual unless the non-resident is engaged in a trade or business in the Netherlands and the real estate is one of the capital assets of the business. If sale of real estate is part of a business enterprise, capital gains are taxed as part of income in Box 3, as discussed in an earlier section.
Netherlands - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
Your Comments
Be the first to comment!