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’