When purchasing a recreation villa, there are a number of fiscal aspects. In this, your personal situation plays an important role. We therefore advise you to obtain information on those fiscal aspects that apply to you and your situation.
The fiscal impact of your investment depends on your goals: Do you want to have a recreation property for yourself or want to invest? Is the investment done privately or is the purchase made within your company, for example by your private company (Ltd.)?
There are various tax benefits when renting out a holiday home, which can make a significant contribution to the final return. Very globally, this comes down to the following:
- full or partial refund of 21% VAT charged on the purchase of the property, land and inventory
- the small enterprise scheme may be applicable (this can provide an advantage of € 1,345 per year)
- untaxed annual rental income (The recreation property is included in box 3. This means that 1.2% income tax will be charged on the average value of your investment, minus any (mortgage) debts.
- no income tax on capital gain gained on sale
The summation above is based on a private investor, residing in the Netherlands, who purchases in privately.
For further information on the taxing of a second home, please refer to the Tax Administration (Belastingdienst) website.
Note: no rights can be derived from the information stated above.