Income tax on rent, worked example, in Netherlands
| Non-resident couple's joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| = Taxable Income (4% notional yield)2 | 8,0503 | 53,0924 | 126,6655 | |
| Income Tax Rates6 | ||||
| Flat Rate | 30% | 2,415 | 15,927 | 38,000 |
| Annual Income Tax Due | €2,415 | €15,927 | €38,000 | |
| Tax Due as % of Gross Income | 13.42% | 22.12% | 26.39% | |
| Source: Global Property Guide research |
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Notes
1 The property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 EUR = 1.00 EUR
3 For income from investments, the tax is levied on the demed notional yield of the investment. For 2017, there is an allowable deduction of €25,000 for each individual, or €50,000 for a married couple.
DEEMED YIELD OF ASSETS FOR TAXATION 2017 |
|
| Asset Value, € | Deemed Yield |
| Up to €75,000 | 2.87% |
| €75,000 - €975,000 | 4.60% |
| Over €975,000 | 5.39% |
| Source: Global Property Guide | |
3-1 The property is valued at €225,000, and there is a deduction of €50,000. (€225,000 - €50,000) * 4.60% notional yield = €8,050
3-2 The property is valued at €1,035,000, and there is a deduction of €50,000. (€1,035,000 - €50,000) * 5.39% notional yield = €53,091.50
3-3 The property is valued at €2,400,000, and there is a deduction of €50,000. (€2,400,000 - €50,000) * 5.39% notional yield = €126,665
4 The tax is levied at a flat rate of 30% on the calculated notional yield.
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