An extension to one’s own home that is let out via Airbnb is taxed under Box 1.
The issue on which the North Holland District Court The case in question concerns a couple who are extending their own home with an annex comprising a utility room and a guest accommodation. The guest accommodation is let to tourists via Airbnb and consists of a room containing a kitchenette and a toilet/shower room.
Temporary rental
The Tax and Customs Administration taxes the income generated from the guest accommodation in Box 1 in accordance with the rules governing the temporary letting of one’s own home. In addition to the notional value of the owner-occupied home, 70% of the benefits derived from the temporary letting (income minus costs) is then taxed.
The Court refers to a judgment in which the Supreme Court In 2020, it was decided that the scheme for the temporary letting of one’s own home also applies to the (temporary) letting of part of one’s own home.
The Court then ruled that the guest house forms part of the main residence (is an appurtenance). The guest house is a structural part of the property and is also registered as part of it in the land registry. Furthermore, given its layout, it is also suitable for use in connection with the main dwelling.
The question remains as to whether the guest house is let on a temporary basis. The couple maintain that this is not the case, as the guest house is permanently available for letting and they do not make use of it when it is vacant. Referring to a 1980 judgment of the Supreme Court, the District Court finds that the guest house is returned to the owner’s disposal after each short period of letting. This therefore constitutes temporary letting.
The Court rejects the objections raised on appeal and upholds the tax assessment imposed by the Tax and Customs Administration.