How does property tax work in the Netherlands?

Property tax in the Netherlands

In the Netherlands, owners of both residential and commercial properties, as well as tenants of garages and storage units, are required to pay property tax. This tax is called onroerendezaakbelastingen, or abbreviated as ozb, and is a fixed percentage of the official property valuation known as WOZ. The tax rate varies depending on the region, type of property, and its intended use.

Real estate sales and tax obligations

If the owners decide to sell their property less than a year after acquiring it, the notary or agent should discuss the tax distribution process with the new owners. It is worth noting that tax rates can vary significantly between municipalities. For example, in Amsterdam, the following rates apply:

• for residential properties — 0.0428%
• for commercial real estate — 0.1796%
• for commercial space tenants — 0.1293%

However, tenants of residential properties are not required to pay this tax.

Average tax rates and mortgage deductions

On average, the property tax in the country ranges from about 0.1% to 0.3%. It's also important to know that if the property was purchased with a mortgage, the interest payments can be deducted from the WOZ, which significantly reduces the tax burden.

Taxation of mortgages

Another important aspect of taxation is that mortgage interest is not taxed if the property is used as a primary residence. This rule remains in effect for 30 years. However, if you decide to leave the country without completing a real estate transaction, the tax benefits in the form of mortgage deductions may be revoked.

The process of paying property tax

The process of paying property tax occurs once a year. This is done through a combined tax bill from the municipality, which may include other payments, such as rental income tax. Property reassessment is carried out by January 1 of the following year, after which local authorities send a tax declaration by mail, indicating the assessed value of the property and the tax rate.

Every year, the Netherlands tends to increase property tax rates as well as garbage collection fees.

Examples in the real estate market

For an illustrative example, we can look at current offers on the real estate market in the Netherlands. For example, in the center of Amsterdam, a 3-room apartment with a terrace of 140 m² is for sale at a price of 666,400 euros. This apartment is located in a historic building, which emphasizes its architectural value and uniqueness. Such examples demonstrate the activity on the real estate market and can serve as an indicator of current trends.

Description of the house

This house was built in 1898 and is now in immaculate condition thanks to the restoration carried out. Its total area reaches 113 square meters, and there is a cozy corner - a terrace of 27 square meters.

Price and additional costs

The price tag on this property is595,000 eurosAt the same time, it is necessary to take into account an additive of 12% for associated costs, so that the total amount of the transaction will amount to666,400 eurosand the cost estimate exceeds1,226,400 euros.

Location

This building is located in Laren, Netherlands, about 30 kilometers from Amsterdam.

Features of the villa

This exquisite villa with two floors has panoramic windows through which natural light streams in. The living area is 250 square meters, in addition to which there is a utility room with a total area of 20 square meters.

Rooms and amenities

• There are seven rooms inside.
• There is a sauna and a gym.

Plot and garage

The plot on which the villa stands is549 square metersand decorated with landscaping. Additionally there is a garage that can accommodate two cars and is connected to the house.

The surroundings of the villa

Talking about the location, the villa is located in a picturesque and positive area. The final value of this villa is estimated at752,840 euros.

Apartments in Amsterdam

There is an apartment for sale in the center of Amsterdam, the area of which is108 square meters. This three bedroom space functions as an office apartment with a separate entrance. The building where the apartment is located was erected in 1910 and is characterized by a remarkable interior and excellent condition.

Uniqueness of the object

A special feature of this property is the permission for dual use: a combination of residential and commercial use, which is quite rare in Amsterdam.

Size and value of the apartment

The dwelling has an area of 100 square meters, together with the terrace - 108 square meters. The approximate price is392,000 euros.

Studio apartment

In the heart of Amsterdam we also offer a studio apartment with a floor area of33 square metersThe property was built in 1770 but was renovated in 2007. This apartment is recognized as a monument of architecture and is protected by law. The height of the ceilings reaches3.3 metersand the apartment has been made with attention to detail. The plot of land belongs to a private owner and the price of the apartment is350,000 euros.

Investment opportunities

The next interesting project is an investment opportunity in Amsterdam located in the Overtom neighborhood.

Description of the investment object

The building, formerly used as an automobile service station, has received approval for conversion to residential use with a12 apartmentsfor rent. All the necessary documents have already been drawn up and the foundation has been strengthened.

Cost of investment project

The price of this project is.1,500,000 euros.

A secluded estate in the north of the Netherlands

There is a secluded estate in the north of the country with an area of320 square metersposted at150 kilometersfrom Amsterdam. This is a great offer for those who prefer a quiet and peaceful life, away from the hustle and bustle of the city.

Land plot area

The area of the land plot is more than4.33 hectaresand surrounded by beautiful meadows and forests, creating an atmosphere of seclusion and comfort. The estimated price of this estate is2,044,000 euros.

Villa near Haarlem

Also, 20 kilometers west of Amsterdam, there is a luxurious villa in a prestigious area near the city of Haarlem, built inin 1976.

Villa parameters

• The area of the land plot is2368 square meters.
• The living area of the villa is —264 square meters.
• Inside the villa, there are five bedrooms, two bathrooms, and two toilets, which provide comfortable living conditions.

Cost estimation

The estimated cost of this magnificent house is3,752,000 euros.

Extraordinary real estate in Amsterdam

Amsterdam is an amazing city that features a beautiful four-story house on the famous Prinsengracht canal. This architectural masterpiece is located in the heart of the Dutch capital and occupies a land area of 120 square meters, which is fully privately owned.

Known for its history, this mansion was built back in 1655, and today it presents itself to buyers in magnificent condition. Its living space totals 303 square meters, to which a secluded terrace can be added. This sales offer is priced at4,480,000 eurosthat will undoubtedly attract the attention of luxury real estate enthusiasts in the Netherlands.

Luxurious house on Museumplein

The next property that deserves attention is a luxurious 4-story house with an area of 286 square meters, located in close proximity to Museumplein and the famous P.C. Hooftstraat. This real estate will allow the owner to immerse themselves in the atmosphere of the city, right in its heart.

There is a terrace with an area of 37 square meters, and the price of this property is425,600 euros.

Available apartments in West Amsterdam

Despite the high housing prices, Western Amsterdam also offers more affordable options. One such example is a 3-room apartment on the 5th floor in the Badhoevedorp area, built in the 1970s.

• The total area of this property:70 square meters
• Presence of a balcony:5 square meters
• Price of the apartment:380,000 euros
• Taking into account all additional expenses, the total amount is:about 425,600 euros

Cozy apartment in a green area

Another interesting option is a 3-room apartment located in a quiet, green area, just 20 minutes by bus from the picturesque city center. This apartment is on the fifth floor of a modern building constructed in 2007 and offers 82 square meters of space.

In addition, there is:

• View of the lake located in the park.
• A parking space, which is an important advantage.
• The cost of the apartment:3,864,000 euros

Investment opportunities: income-generating property

If you are looking for income-generating real estate, consider this income property located in the historic center of Amsterdam, where a Protestant church once stood. This building, constructed in 1880, has an area of 500 square meters and is in excellent condition.

Key Features:

• Perfect for opening an office or an art gallery.
• The land under the building is fully privately owned.
• Price:616,000 euros

Modern apartments for comfortable living

For those interested in modern apartments, there is an option for a 3-room apartment on the fourth floor of a new building constructed in 2009. The total area of this apartment reaches 76 square meters.

There is also:

• A large shared terrace on the roof.
• Price of the apartment:364,000 euros

Conclusion

Ultimately, each of the presented offers is a unique opportunity for those looking to invest in real estate in a vibrant and attractive city like Amsterdam. Each of these properties can meet the needs of a wide range of buyers, from those seeking luxury to those who value comfort and affordability.

Unique apartment offers in Amsterdam

Amsterdam is famous for its exceptional real estate offerings, including apartments located in the most beautiful corners of the city, such as picturesque bays. One of the most enticing properties is a three-room apartment in the very heart of the Dutch capital.

This property was put into operation in 2004 and is located on the fifth floor of the building, with a total area of 68 square meters. The apartment also includes a storage room and a parking space in the underground garage. The price of this offer is325,000 eurosand taking into account additional12%the costs, the total amount increases to364,000 euros.

Interesting real estate options

In Amsterdam, there are other wonderful real estate options, such as a two-bedroom apartment located in a historic building on the canal that is already 17 centuries old. This historic structure was restored in 1985, with special attention given to the restoration of the facade.

The area of this apartment is51 square metersIt also includes a storage room. The owner will have to pay for this apartment.515,200 euros.

Modern apartments for comfort lovers

For those who appreciate the style and comfort of modern living, there is an opportunity to purchase a two-bedroom apartment with a balcony on the sixth floor. This building, constructed in 2004, offers a total area of76 square metersincluding two bedrooms, two bathrooms, and a fully equipped kitchen.

The cost of such an apartment is460,000 euros, when adding12%the total amount will be515,200 euros.

Luxury apartments in The Hague

Luxurious apartments are offered in The Hague's historic district, just a hundred meters from the Dutch Parliament. Built inin 1906These apartments have an area220 square metersand include four rooms, a balcony, a terrace, a jacuzzi, and a sauna.

The complete restoration was finished inin 2011, witnessing modern style and comfort. The cost of this property is683,200 euros.

Apartment with access to a gated community

If you are interested in an apartment with access to a gated community, you should consider a five-room apartment with an area of120 square meterson the first floor of the building constructed inin 2008This apartment provides direct access to the courtyard and includes a parking space in the underground garage.

The price is quite attractive.610,000 euros, and together with12%the costs of processing the deal, the total amount will reach683,200 euros.

Investment opportunities in Amsterdam

It is worth noting that there are investment opportunities in Amsterdam, including three buildings in the city center. These historic structures are being offered at a quite reasonable price. The total area of the three properties is450 square metersand includes three separate rooms of size100 square meters,90 square metersand260 m².

The fact that the land is privately owned is particularly significant, as this is a considerable advantage for such properties in the center of Amsterdam.

Responsibilities of the new owner

When purchasing an apartment in the Netherlands, the new owner automatically becomes a member of the owners' association.VVE), which is responsible for the maintenance and servicing of the residential complex. All members of the association are required to regularly pay fees for maintenance, the amount of which depends on the services provided and the characteristics of the association.

This creates additional reliability and confidence in the future, allowing for expectations of high quality of life and service in the new apartment.

The cost of utilities in the Netherlands

The average cost of utilities in the Netherlands ranges from 1 to 2 euros per square meter. This amount does not include electricity expenses, which can vary.

Electricity suppliers

Several large energy companies operate in the country, among which we can highlightEssent,NuonandOxioThe electricity rates of these operators are at the same level, approximately 0.19 euros per kilowatt-hour.

Each of these companies offers different rates that allow for lower prices depending on the time of day, whether it's during the day or at night.

Use of gas

As for gas supply, the situation here is different. The use of gas in homes is less common and is mainly characteristic of older buildings, as prices are generally quite high. The largest gas supply companies are similar to those that supply electricity. The average cost of gas is about 0.62 euros per cubic meter.

Water supply and tariffs

The water supply system in different regions has its own rates, which can vary significantly depending on the specific provider. For example:

• Evidesoffers some of the lowest prices for water — €0.95 per cubic meter,
• WaternetCustomers will have to pay 1.24 euros for the same unit of volume.

On average, the price for water supply is about 1.1 euros per cubic meter. It's more economical to pay based on the meter, because without it, costs can increase by 6-8 times, as the total amount will be evenly divided among all residents.

Fees for services

The fees for garbage collection and emergency services are set by local authorities and depend on the infrastructure and population density in specific buildings. For example, in Amsterdam, the annual fee for one person is 235 euros, while for a family of three, it is 313 euros.

The cost of internet and additional services

As for the internet connection, the cost for a package with a speed of 50 Mbps ranges from 25 to 30 euros per month. If television and telephone services are included, the total amount increases to 45-50 euros per month.

Home insurance

Home insurance is mandatory, and the costs for it are often included in the overall payment collected by the homeowners' association for the entire building. However, such a policy can also be arranged individually.

In the Netherlands, the overall cost of living remains quite acceptable when compared to other developed countries in Western Europe. Undoubtedly, megacities like Amsterdam are not known for their affordability. According to recent studies, living in the capital is 30% more expensive than in Madrid, 18% more than in New York, and the difference compared to Munich is 12%. When it comes to Paris, London, and Singapore, the price differences have only been recorded at a few percentage points. Nevertheless, the quality of life in this country is indeed high. For example, finding housing in Almere, which is just a 20-minute train ride from Amsterdam, can be significantly cheaper. In comparison, renting an apartment in Almere is twice as cost-effective as in the capital.

Income in the Netherlands

Speaking of income, it should be noted that as of the beginning of 2021minimum wageIn the Netherlands, the average salary is €1685, while the mean is around €2200. After taxes, the average Dutch person earns about €26,000 a year. In major cities like Rotterdam and Amsterdam, earnings often exceed the average figures by €150-300. For highly qualified foreign specialists, salary requirements range from €2497 to €5567 per month, depending on age, skills, and professional specialization. One important aspect is the high tax burden in the country, so when analyzing salaries, it is essential to focus on net income.

Cost of housing

When it comes to housing costs, it should be noted that rent in Amsterdam is quite high. To rent a one-bedroom apartment in the city center, you need to have between €1500 and €1800 per month, while in more peripheral areas, prices range from €1100 to €1400. Renting a three-bedroom apartment will cost between €2500 and €2800 in the center and from €1900 to €2100 on the outskirts. Recent studies show that many foreigners face difficulties in paying rent in the Netherlands.

Food prices

Now let's pay attention to food products. Prices for basic groceries in the Netherlands are not that high, especially if you buy them in large chains like Albert Heijn and Dirk, as well as in international stores like Aldi and Lidl. Shopping at street markets can save you an additional 15%. If the main meals are prepared at home, the food expenses for one person range from €200 to €250 per month.

Conclusion

Thus, life in the Netherlands has its own characteristics that should be taken into account when planning a move to this country. If your goal is employment, it is important to find out which professions are in demand and what the potential earnings are – this information will be very useful. It is also highly recommended to keep track of current news in the foreignreal estate market by using specialized channels on Telegram to stay informed about all changes and offers in this area.

Prices for goods and services in the Netherlands

In this section, we will take a detailed look at some aspects of pricing for goods and services in the Netherlands. For example, the cost of a carton of milk is around €1, while bread will set you back between €1.5 and €2.

Food prices vary:

• A kilogram of rice costs about €2;
• A dozen eggs — €2.8;
• A kilogram of chicken meat costs about €8;
• Beef costs about €13.

As for vegetables and fruits, their price in supermarkets ranges from €1.5 to €2.5 per kilogram.

Dining out

If you plan to have lunch out, a budget menu at a café will cost you between €5 and €10, while a full dinner at a mid-range restaurant will set you back from €9 to €17.

A glass of beer at an establishment will cost around €5, while a cup of cappuccino will set you back between €3.5 and €4. At McDonald's, you can buy a meal set for just €9.

Transport system

The transportation system in the Netherlands is highly developed and includes:

• Buses;
• Trams;
• Metro
• Trains.

The cost of travel depends on the distance. A ticket for a single trip, valid for one hour, can cost between €1.3 and €3.5, while a train ride from Haarlem to Amsterdam will cost about €4.5.

The monthly transit pass in this city will depend on the chosen zone and type of transportation, ranging from €35 to €95.

There are many transportation companies, each offering favorable conditions. For example, you can submit a request for a travel pass for a specific period or for a particular route. There is also the option to obtain a discount card. For instance, you can purchase a subscription with a 40% discount for weekends for €50 a year.

Payment for travel

Local residents use a card to pay for their fare.OV-chipThe cost of which is €7.5. The card balance can be easily topped up online, at machines, or at stations. Using this card significantly reduces transportation costs.

Taxis have different rates that depend on the pickup location; for example, in Amsterdam, the rate is about €3.5 per kilometer, while in Groningen, the price is only €2 per kilometer. The average price of gasoline in the country hovers around €1.6 per liter.

Bicycle rides

In the Netherlands, cycling routes are actively being developed. Specialized bike paths are available almost everywhere, and each city has extensive bike parking facilities, which significantly contributes to savings on public transportation.

Mobile communication

In the mobile communications segment of the country, there are many operators with a variety of tariffs that can differ significantly. It is possible to find an optimal internet traffic package where 1 GB of data costs €10, and the cost of one minute of calls within the network is €0.12.

Sports and leisure

If you're interested in sports, be prepared for a gym membership to cost between €40 and €50 per month. A movie ticket costs about €12–15.

Medical insurance

All citizens of the Netherlands are required to have health insurance, which is divided into two main categories:

• Basic health insurance, according to the Health Care Insurance Act (Zorgverzekeringswet);
• Long-term care insurance under the Long-term Care Act (Wet langdurige zorg).

Minimum prices for medical services

The minimum rates for the basic medical package start at 100 euros per month. For this amount, service users can expect support in emergency situations, as well as consultations with qualified specialists and the option to purchase medications at a discount. A more comprehensive and extensive medical services package, which includes treatment for chronic diseases, cosmetic procedures, and physiotherapy, costs approximately between 250 and 300 euros per month.

Housing rental and the cost of living in the Netherlands

Considering the standard of living in the Netherlands, renting housing has become a relevant topic for many citizens. Despite the consequences of the pandemic, property prices in the country continue to rise, which in turn affects rental costs. The annual yield in this sector depends on the location, type of property, and city.

• Experts claim that the highest profit can be obtained from residential real estate, where the yield ranges from 10% to 12% per year.
• The yield on commercial and industrial real estate ranges from 8% to 11%.
• In the case of a long-term lease, all expenses, except for property tax, are the responsibility of the tenant.

Short-term rental in Amsterdam

If we consider cities like Groningen and other towns in the Netherlands, the cost of short-term rentals in Amsterdam ranges from 90 to 100 euros per day. Since the summer of 2020, new regulations have been introduced in the country, requiring property owners to obtain special permits for renting out their properties on a short-term basis. This change has led to a 75% decrease in the number of available rental apartments in the city.

Taxes for non-residents renting out property

Taxes for non-residents renting out property in the Netherlands can vary depending on multiple factors. The main parameters for calculating taxes are rental income and the assessed value of the property (WOZ index). Tax deduction possibilities are also taken into account, the amount of which depends on the individual situation of the owner, the percentage of the notional yield, and a fixed tax rate of 30%.

Example of tax calculation

For example, let's consider a situation where a couple rents out an apartment worth 225,000 euros for 1,500 euros a month. This brings in an annual income of 18,000 euros. The following formula is used to calculate the taxable income:

(225,000 euros - 50,000 euros) × 4.6% = 8,050 euroswhere 50,000 euros is the tax deduction for the family, and 4.6% is the assumed minimum yield rate. A fixed tax rate of 30% is then applied to this taxable income, resulting in a total tax amount of 2,415 euros for the year.

Tax deductions for single individuals

For single individuals, the tax deduction amounts to 25,000 euros. The percentage of the conditional minimum yield varies depending on the value of the property:

• For objects priced at no more than 75,000 euros — 2.87%
• For properties in the range of 75,000 to 975,000 euros — 4.6%
• Over 975,000 euros — 5.39%

Management companies

As for management companies, they provide full property management services. Their services include taking care of the properties, finding tenants, processing payments, and paying utility bills. Payment methods can vary — it can be a fixed fee or a variable percentage (usually within 6-8% of the income).

Conclusion

In conclusion, it is important to understand that property tax in the Netherlands is a significant aspect that affects not only apartment and commercial property owners but also tenants. As we have discussed,Tax rates vary depending on the location and type of property.Each municipality sets its own rates, which creates certain difficulties for citizens. I found that as an owner, it's essential to be aware of all the nuances to avoid unexpected expenses.

It is also important to consider that changes in tax legislation can occur, which requires constant monitoring and adaptation. I found that property revaluation and general taxation principles can play a key role in financial planning. For example, the ability to deduct mortgage interest can be a significant advantage, especially if you use the property as your primary residence.

The process of paying taxes

An important aspect remains the process of paying taxes, which occurs once a year and includes many other fees. This means that property owners need to carefully monitor their financial obligations and budgets. Despite these challenges, I also see many opportunities for investing in real estate in the Netherlands, where the housing market is actively developing, and the variety of properties offers numerous options for purchase.

Key points

• Property taxes vary depending on the region and type of property.
• It's important to keep track of changes in tax legislation.
• Deductions for mortgage interest can significantly reduce the tax burden.
• The tax is paid once a year and includes other fees.

Ultimately, property taxes in the Netherlands require careful consideration and a thoughtful approach. I realized that a well-organized financial plan and a clear understanding of local tax regulations can help avoid unpleasant surprises and contribute to successful property management. I hope this information will be useful for both newcomers and experienced investors looking to manage their assets effectively.