Box 2 is a flat rate of 26,90% (2021 and 2022) for owners of more than 5% of the shares in a corporate entity (a substantial interest). Income from real estate from the corporate entity is not directly taxed by the shareholder but with the entity itself with corporate income tax. Valuation of the real estate held by the entity is directly related to the value of the shares held by the shareholder. In case the shareholder sells shares in the real estate entity a rate of 26,90% is applicable in case capital gain on the value of the shares is realized. The wealth tax is levied in box 3. Per 1 January of each year the market value of real estate minus debts related thereto is subject to a notional annual income of 0,03 – 5,69% (2021, as from 2022: -0,01% - 5,53%). The notional annual income calculated is taxed with 31% (2021 and 2022). With respect to the lease of residential real estate, different valuation rules may be applicable. Landlords may qualify for a deduction under box 3. This deduction depends on the rental income as a discounted percentage on the market value of the real estate as per 1st of January of each year, the so-called WOZ-value. This annual valuation is arranged on behalf of the local authorities. If the annual rental income is between 1-7% of the WOZ-value, the landlord is allowed to use a deduction of maximal 55% of the WOZ-value. This means that the notional annual income will decrease, and less tax will be charged. This is the so-called vacant value ratio. The abovementioned Boxes are also applicable for non-resident investors subject to Dutch income tax. They are considered as non- resident taxpayers for Dutch Income tax purposes. The Netherlands have an extensive network of tax treaties with other countries in which the effects of double taxation are mutually arranged, with regard to Box 1, 2 and

3. The right to levy Dutch income tax on income, gains and assets of non-residents may be therefore limited. Real estate tax Real estate tax is a local tax which is charged at owners of residential real estate or business premises. The WOZ-value is also the basis of taxation for this tax. How much real estate tax you have to pay, depends on the property rate which is annually determined by the municipality. This income is used by the municipality for all kinds of general provisions. For example, the construction and maintenance of roads, sidewalks and public gardens. The real estate tax is always charged for the whole year. If you buy real estate during the year, you will receive a tax assessment at first in the following year. Landlord taxation on social housing Landlords and housing associations might be subject to a landlord levy in the social housing sector. This levy is applicable if you let at least more than fifty properties with an rental income per month of less than € 752,33 each; the so-called rent allowance which can be claimed by lower-income households. The total market value (on the 1st of January) of the social housing portfolio decreased with the market value of the first fifty properties is taxed against a percentage of 0,526%. Future plans box 3 The state secretary of finance has announced plans to adjust the regime of box 3. At this moment, the valuation considers (deduction of) debts related to real estate. It is planned that as from 2022, debts cannot be deducted from the value of real estate anymore. As an effect, the tax burden will increase.

ILN Real Estate Group – Buying and Selling Real Estate Series

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