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House price rises mean ‘villa tax’ hits four times more homes
Wassenaar has many high-value homes. Photo: Goodness Shamrock via Wikimedia Commons
House price rises mean that ever more home owners are having to pay the ‘villa tax’ for homes estimated at more than €1,110,000, according to home owners’ association Verenging Eigen Huis.
The value of Dutch homeowners’ property is guessed each year by local councils, based on actual sale prices for surrounding homes. Those that are given a ‘WOZ’ council value of more than €1.11 million see part of their income tax rise dramatically.
In the complex Dutch tax system, there is a ‘notional rent’ that is considered an extra income source – the eigenwoningsforfait. This is considered to be 0.5% of a house worth from €75,000 to the ‘villa tax’ limit. Houses considered by the local council to be worth more add this notional income of €5.550 plus 2.35% of the house value’s above €1,110,000 to the owners’
Home owners face higher local council taxes, average rise tops 5%
Photo: DutchNews.nl
Local authority taxes on home owners are rising by an average of 5.3% this year, but in Amsterdam they are shooting up more than 20% according to calculations by home owners lobby group Vereniging Eigen Huis.
The association earlier forecast an average property tax rise of 3.1% but says that now needs revising sharply upwards as local councils fill gaps in their spending plans. Waste collection charges are also rising by an average of 7.8%.
The biggest increase, costing home owners an average €121 more a year, is in the local authority area of Opmeer, where the property tax is rising 41% because the council has a budget shortfall of €1m.