Fiscally

Fiscal aspects

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.

Investment purposes

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.)?

Potential benefits

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.

Learn more

For further information on the taxing of a second home, please refer to the Tax Administration (Belastingdienst) website.

Belastingdienst: Holiday Rental
Belastindienst: Second home

Note: no rights can be derived from the information stated above.

Investment Goal

The fiscal consequences of your investment depend on its purpose: do you occasionally want to recreate yourself or do you want to fully invest? Does it concern a private investment, or is the purchase made within the context of your company, for example by your bv?

Possible advantages

There are a number of tax benefits, when renting out a holiday home, that can make a significant contribution to its ultimate return on investment. In general, this involves the following:

• full or partial refund of the 21% of VAT charged on the purchase of the house, land and inventory
• Possibly the applicability of the small business scheme (which can yield an annual benefit of €1,345)
• Untaxed annually received rental income (the recreational home is included in box 3. This means that, on balance, 1.2% income tax is levied on the average value of your investment, reduced by any (mortgage) debts.)
• no income tax on capital gains obtained on sale

The list above is based on a private investor, living in the Netherlands, who privately buys a holiday home.

More Information

For more information about the fiscal treatment of a second home, please refer to the website of the tax authorities.

Tax and Customs Administration: Renting a Holiday Home
Tax and Customs Administration: Second Home

Note: no rights can be derived from the information above.