Guide to Property Taxes in Netherlands

Non-resident individuals are generally subject to Dutch income tax only on specified Dutch-source income, including income associated with real estate situated in the Netherlands.

The Netherlands divides taxable income into three categories, known as Boxes 1, 2 and 3, each of which has its own tax rules and rates.

Personal Income Tax — Box System

Box 1: Income from Work and Home Ownership

Box 1 broadly covers employment income, business and professional income, certain pensions and periodic payments, and income associated with a taxpayer's principal residence.

For taxpayers below the Dutch state-pension age, the 2026 Box 1 rates are:

Income Tax Rates 2026

*The composition of the first bracket differs for taxpayers who are not liable for Dutch national insurance contributions, which is particularly relevant for non-residents.

Box 2: Substantial Shareholding

Box 2 generally applies to income from a substantial interest, normally where an individual directly or indirectly owns at least 5% of a company.

For 2026, Box 2 income is taxed at:

• 24.5% on taxable Box 2 income up to €68,843; and

• 31% on the excess above €68,843.

Box 3: Savings and Investments

Privately held Dutch investment real estate of a non-resident individual generally falls within Box 3.

Box 3 does not ordinarily tax the contractual rental income directly. Instead, under the transitional regime, tax is calculated by reference to a return on the taxpayer's net taxable assets.

For the 2026 provisional assessment, Dutch real estate classified as an investment or other asset is assigned a 6.00% deemed return.

The calculated Box 3 return is then subject to income tax at 36%.

Rental Income Tax

For an ordinary privately held Dutch investment property, actual rental income is generally not taxed separately as rental income.

Instead, the property normally forms part of the individual's Box 3 assets, and tax is determined under the Box 3 system described above.

Under the 2026 provisional Box 3 regime, Dutch investment real estate is assigned a 6.00% deemed return, which is taxed at 36%. Assuming a single non-resident owner, no mortgage debt and application of the €59,357 Box 3 tax-free allowance, estimated annual Box 3 tax is approximately €5,198, €24,638 and €50,558, respectively.

This corresponds to approximately 28.9%, 34.2% and 35.1% of gross rental income at the three income levels. These percentages should not be interpreted as statutory rental-income tax rates: Dutch Box 3 taxation depends primarily on the property's taxable value rather than rent received.

Capital Gains Tax

The Netherlands generally does not impose a separate capital gains tax on the disposal of privately held investment real estate falling within Box 3.

However, under the current actual-return rules, changes in the value of Box 3 assets can be relevant when determining actual return. Therefore, it is no longer sufficiently precise to state simply that appreciation of a Box 3 property is always outside the Dutch income-tax calculation.

Where the property forms part of a business or the taxpayer's activities exceed normal passive asset management, gains may instead constitute taxable Box 1 income.

Corporate Tax

Companies subject to Dutch Corporate Income Tax are generally taxed on their net taxable profits, including taxable rental income and capital gains from real estate.

For 2026, the corporate income tax rates are 19% - 25.8%.

Qualifying business expenses incurred in generating rental income are generally deductible, and depreciation may be available subject to Dutch limitations.

Capital gains realized by a company on Dutch real estate are generally included in taxable corporate profit and subject to the applicable 19% or 25.8% corporate income tax rate.

Buying and Selling Taxes/Costs

Property Holding Tax

Real Estate Tax (Onroerendezaakbelasting – OZB)

Owners of real estate in the Netherlands are generally subject to annual municipal Real Estate Tax (Onroerendezaakbelasting or OZB).

The tax is calculated as a percentage of the property's official WOZ value (WOZ-waarde), which is determined annually by the municipality.

For residential property, the owner generally pays the OZB owner's tax. Residential tenants do not normally pay a separate OZB occupier tax.

For non-residential property, such as commercial real estate, separate owner and occupier OZB charges can apply.

The annual liability can broadly be expressed as:

WOZ value × applicable municipal OZB rate = annual OZB

Because rates differ considerably between municipalities, the applicable local rate should be used when estimating the annual holding cost of a particular property.

Other Municipal and Water Authority Taxes

Property owners and occupiers can also face several other local taxes and charges in addition to OZB.

These can include sewerage charges (rioolheffing), waste collection charges (afvalstoffenheffing) and taxes imposed by the regional water authority (waterschap) for water-system management and water treatment.

The amount and method of assessment vary according to the municipality, water authority, property characteristics and whether the charge is imposed on the owner or occupier.

Municipalities may also impose fees connected with planning and building permits. These are transaction or development-related charges rather than ordinary annual property taxes.

For international comparison purposes, Dutch annual property holding costs should therefore be viewed as the combination of municipal OZB plus applicable municipal and water-authority charges, rather than as a single nationwide percentage of property value.