Renting or purchasing a holiday home in the Netherlands – 4 tax issues to watch out for

Purchasing a holiday home in the Netherlands can be an appealing investment for personal use and for generating extra income from rental property. However, there are some tax implications that you should keep in mind, particularly when it comes to income tax and VAT. I have provided a summary of four key issues to pay attention to below.

By Daphne Vosbeek, Junior Tax Specialist

Dutch people aren’t the only ones to see the investment opportunities of having a holiday home in the Netherlands. Our neighbours in Germany and Belgium have also found their way to our country when renting or purchasing holiday homes. And, while it’s already difficult enough for many Dutch homeowners to figure out the ins and outs of tax law and regulations, it’s extra complicated for homeowners and landlords from abroad. Things work differently here than they do at home. I have chosen to highlight the four most important issues you should be aware of and included a summary of each, worthwhile information for both Dutch and foreign buyers and landlords.

1. Transfer tax with purchase

You pay a transfer tax in the Netherlands when you purchase property, including holiday homes in the Netherlands. For existing properties, this value amounts to 10.4% of the property’s value. For new properties (< 2 years old) and chalets, you do not have to pay transfer tax, but you must pay 21% VAT on the purchase price.

2. Annual municipal taxes

A holiday home in the Netherlands is subject to different municipal taxes and levies, including property tax (OZB, onroerendezaakbelasting), household waste tax, sewage tax, water tax, and tourist tax. We will discuss the most important two types of tax here:

• Property tax

As a property owner, you pay property tax (OZB). The property tax comprises a percentage of the WOZ value of the home, which translates to the property value.

The Dutch municipality where your residence is located determines the home’s WOZ value. They base this value on aspects such as the sale prices of similar homes, the location, size and condition. You will receive a notification of the WOZ value each year after the municipality has determined the property value. If you disagree with the assessed value, you can file an objection each year (within a set period).

• Tourist tax

The municipality may charge a tourist tax if you rent your holiday home out to tourists. The tourists pay the tax, but you, as the owner, are responsible for collecting and turning the tax over to the municipality.

3. A holiday home in the Netherlands is a Box-3 asset for taxation purposes

Property that functions as a holiday home may be taxed in the Netherlands as part of the Dutch tax return. In tax terms, a holiday home in the Netherlands counts as an asset, which is why it falls under the Box-3 category (income from savings and investments). The property’s value minus any mortgage debts is taxed against a flat-rate return (note: this is currently under review, which means that this may change to the actual return in future) based on the asset’s total value.

Income from rental and revenue from sales

Any income from rental and revenue from selling a holiday home in the Netherlands are not taxed in the annual income tax return, and any costs incurred are therefore not deductible. If you rent out your holiday home for a longer period to someone who becomes eligible for rent protection, you pay less taxes because of what is referred to as the ‘vacant value ratio’.

Do you live in Germany?

The Netherlands has a tax agreement with the Netherlands to avoid double taxation. This can mean that you may receive a tax reduction in Germany over taxes paid in the Netherlands.

4. Renting out a holiday home in the Netherlands

When you rent out a holiday home in the Netherlands, you’ll most likely be considered a VAT business. This means you should include a VAT of 9% (and possibly 21% as of 2026) in your rental price.

You are eligible for a tax deduction over any VAT paid during the purchase and any costs or investments made (such as maintenance and interior).

Rental through a holiday park

Renting out a holiday home in the Netherlands through a holiday park raises specific tax-related issues. The holiday park usually primarily facilitates the rental of your holiday home to guests, meaning that the holiday park acts as an intermediary.

Rental agreement

In a rental agreement with the holiday park, you draw up agreements about the rental of the holiday home, such as how the holiday home is rented out and under what conditions. This rental agreement is important for determining your position with regard to VAT.

Rental invoices

If you rent out your home through a holiday park, the holiday park will draw up the rental invoice and issue the invoice to the tenant on your behalf. This is also referred to as a self-billing invoice. The invoice must meet all legal requirements.

At the end of the period, you will receive a rental notice from the holiday park, including any retained commission.

You are personally responsible for paying any VAT due to the Dutch Tax Authorities. You may be eligible for the Dutch small businesses scheme (kleine ondernemersregeling, or KOR) if you meet the requirements. This means that you do not have to file a VAT return but cannot deduct VAT on costs and investments.

Conclusion: seek advice before deciding

The purchase and rental of a holiday home in the Netherlands may seem like a financially appealing option, but know that tax implications are involved. Depending on the type of holiday home and how frequently the home is rented out, you may face income taxes and VAT tax regulations. I cannot offer any standard advice because every situation is different. That is why we recommend you seek advice before purchasing or renting a holiday home.

We will be happy to help you navigate these complex issues. That also applies when you wish to rent out your holiday home in the Netherlands through a holiday park or when you have to address any other matters regarding property gifts or inheritances. Call or email us so we can discuss your situation and ensure that you meet all legal and tax requirements and get the most out of any tax benefits.

Daphne Vosbeek

Junior Fiscalist
Tel: +31 (0)314 369 111
E-mail: d.vosbeek@stolwijkkelderman.nl