In the new system for levying income tax on income from savings and investments (box 3), the owner-occupation of a holiday home will be taxed. This writes outgoing State Secretary of Finance Van Rij in a letter to the House of Representatives.
The bill, intended to come into force on 1 January 2027, has been sent by Van Rij to the Council of State for advice. It then remains to be accepted by both Houses of Parliament. The (likely) content of the bill is known, as it has been submitted for internet consultation has been laid.
Direct efficiency: 2.65%
Under the (envisaged) new system, real estate is taxed on the basis of a capital gains tax. A distinction is made between direct and indirect returns from real estate. Direct returns include rental and lease income, from which maintenance and other costs may be deducted. But the direct return may also include income in kind, such as own use of the property.
The (draft) bill distinguishes three categories, namely immovable property that:
- be rented virtually all year round (virtually = 90% or more);
- all year long not are rented out;
- be rented out, but less than 90% per year.
If the (holiday) home is not rented out all year, the income from savings and investments (box3) is 2.65% of the WOZ value of the holiday home. This already takes into account the (maintenance) costs.
Income from dwellings rented out less than 90% (mixed-use dwellings) is equal to the higher of the rent received in the year (less expenses) or 2.65% of the WOZ value.
The parliamentary letter mentions a the following budget-neutral parameters: a tax-free income of €1,250, a loss threshold of €500 and a rate of 36%.
Power gain
The indirect return from the (holiday) home consists of the capital result, which is taxed at the end of the period of possession of the (holiday) home. Improvement costs are taken into account when determining this capital result. Obviously, a capital gain or loss may arise. A capital loss will only be set off against other income from savings and investments in the year in question. Indeed, the bill chooses not to introduce a system of loss set-off in Box 3.