The Arnhem-Leeuwarden Court of Appeal has decided that the vacancy value ratio applies to the valuation of some of the flats in a care complex.
Box 3
This concerns the valuation of a care complex for the purposes of income from savings and investments (Box 3). The general rule is that it must be valued at its market value (WEV).
For residential properties, the law equates the WEV with the WOZ value. However, in the case of let properties, this value is often too high. For this reason, the vacancy value ratio may be applied. Depending on the ratio of the annual rent to the WOZ value, this results in a value ranging from 45% to 85% of the WOZ value. The vacancy value ratio may be applied to residential properties subject to rent control regulations.
Complex
The party concerned in the proceedings let the entire care complex to a private limited company, which operated it. The Tax and Customs Administration takes the view that the complex as a whole, not being a residential property, must be valued. The Court of Appeal rejects this argument on the grounds that the complex comprises self-contained flats for which the local authority has issued separate valuation notices under the WOZ.
Furthermore, the Court has ruled that the rent control provisions, which apply to the relationship between the private limited company and the tenants of the flats, also apply to the tenancy relationship between the interested party and the private limited company.
To calculate the vacancy value ratio, the WOZ value of each flat must be reduced by €20,000. This rule applies if the property forms part of a larger property that cannot be divided.
In addition to the flats, the complex also comprises a kitchen, a restaurant, a library, offices and a multi-storey car park. These parts of the complex are valued at their market value, as shown in a valuation report submitted by the interested party.