You own a Dutch property and Dutch tax is what you need to file. How to file a Dutch tax return if you live abroad?
Dutch property and Dutch tax
A Dutch property you own and you wonder if you need to file Dutch tax. The answer is: yes, you need to file a Dutch tax return.
Dutch property main rule
The main rule is that when you own a Dutch property, the Dutch tax treaty with your country states that the Netherlands can tax this property. A property in this matter is a residential home you own. You either have a pied a terre for yourself, which implies the property is empty. Or you rent out the property.
Dutch tax
For Dutch income tax purposes there is no difference in renting out the property or using the property for your own purpose. In either case the taxation is the same.
If you own a property in the Netherlands, but you are not a Dutch tax resident. In such a situation you are regarded as a non-resident tax payer in the Netherlands. You will be only subject to tax related to the property, nothing else.
What is taxed?
Taxed is the so called WOZ value. The WOZ value is a value set by the city in which you own the property. This value is updated every year. Based on the WOZ value you pay local tax, but you also pay income tax.
The WOZ value is reduced with the debt you took out to purchase the property. This difference is taxed with roughly 1.4% income tax. There is a threshold of EUR 50.000 (2021). This threshold is per person, which implies if Mr and Mrs both own the property, each of them should file individually. Then the EUR 50.000 threshold can be claimed twice.
What is the first year of taxation?
The first year of taxation is the year in which you own the property on January 1.
Example.
You purchased the property on February 12, 2019. That implies you own on January 1 for the first time the house in 2020. This means the first tax return to be filed by you is the 2020 income tax return, to be filed in the year 2021.
How to obtain your non resident tax number?
If you have been a Dutch tax resident, a Dutch tax number or BSN number was issued to you. The moment you moved away from the Netherlands, you deregistered from city hall. If you owned while deregistering a property in the Netherlands, your Dutch tax number has become automatically your non-resident tax number.
If you are in the Netherlands for the business of the property, you can make an appointment with city hall for a non-resident tax number. Be very specific for the non-resident tax number, otherwise you get a resident tax number. That is not desired. For a resident tax number you can walk in with city hall any time. For a non-resident tax number you need to make an appointment.
In the situation you purchased and paid for the property in the Netherlands, but you have not visited the Netherlands. You cannot visit the Netherlands, or you have no desire to visit the Netherlands. In that situation we have a solution how to obtain a Dutch non-resident tax number. Please contact us.
Tax is exciting
We think tax is exciting. We are already very excited to file your non-resident income tax return. Our fee is EUR 390 incl VAT per tax return. Feel free to contact us.
In case you have forgotten to file your Dutch non resident tax return and you do already own the property for a number of years. We can go back easily 5 years. We can also go back longer, but not easily. Still happy to assist you.
