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<\/p>\n<\/p>\n
If you have a home, which belongs to your income from savings and investments (box 3), you must value it at the WOZ value.<\/p>\n
A home, which is your private property, is subject to income tax in Box 3 if it does not belong to Box 1. To box 1 belongs the home you:<\/p>\n
In box 3, income tax is calculated on a fixed return. That return is calculated on the value of possessions less debts in box 3. The actual return earned from your home is not important.<\/p>\n
The WOZ value of your home(s) is determined each year by the municipality in which the property is located. It is the market value in freehold condition. The WOZ value of homes is determined by comparing with what was paid for recently sold homes.<\/p>\n
In two situations, a lower value than the WOZ value of your property may be used:<\/p>\n
In these situations, you may value the property for income tax purposes in Box 3 by multiplying the WOZ value by the vacant value ratio.<\/p>\n
The vacancy rate depends on the amount of rent. If the rent is \u20ac500 per month and the WOZ value is \u20ac150,000, the rent is 4% of the WOZ value. The vacant value ratio is then 62% (see table below). The property should then be accounted for in Box 3 for a value of: 62% * \u20ac150,000 = \u20ac 93.000<\/strong>.<\/p>\n The annual rent to be considered under the vacancy ratio is equal to 12 times the monthly rent at the beginning of the calendar year (rent increases during the year are irrelevant). This is the \u201cbare rent\u201d. That is the rent excluding fees for energy, water, upholstery, contents and the like.<\/p>\n A lower value, than the value after applying the vacant value ratio, may be used if the outcome based on the vacant value ratio differs 10% or more from the actual value on the reference date for the WOZ. The Supreme Court<\/a> ruled in 2015 that then the fair market value of the property in let condition may be used.<\/p>\n If the tenant is a related party (e.g. family), it should be assessed whether the tenant pays an arm's length rent. If not, the rental income should be set at 3.5% of the WOZ value. The vacant value ratio is then 62%.<\/p>\nTable vacancy rate<\/h4>\n
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\n Rent as a percentage of the WOZ value<\/td>\n <\/td>\n<\/tr>\n \n More over:<\/td>\n No more than:<\/td>\n Empty value ratio<\/td>\n<\/tr>\n \n 0%<\/td>\n 1%<\/td>\n 45%<\/td>\n<\/tr>\n \n 1%<\/td>\n 2%<\/td>\n 51%<\/td>\n<\/tr>\n \n 2%<\/td>\n 3%<\/td>\n 56%<\/td>\n<\/tr>\n \n 3%<\/td>\n 4%<\/td>\n 62%<\/td>\n<\/tr>\n \n 4%<\/td>\n 5%<\/td>\n 67%<\/td>\n<\/tr>\n \n 5%<\/td>\n 6%<\/td>\n 73%<\/td>\n<\/tr>\n \n 6%<\/td>\n 7%<\/td>\n 78%<\/td>\n<\/tr>\n \n 7%<\/td>\n <\/td>\n 85%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Symbolic rent<\/h4>\n