{"id":531,"date":"2017-09-07T08:00:18","date_gmt":"2017-09-07T06:00:18","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/een-woning-voor-je-studerend-kind\/"},"modified":"2026-03-03T10:33:02","modified_gmt":"2026-03-03T09:33:02","slug":"a-home-for-your-student-child","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/een-woning-voor-je-studerend-kind\/","title":{"rendered":"A home for your student child"},"content":{"rendered":"

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Room shortage among students is high in many cities. Consequently, parents regularly buy a house in which their student child and some fellow students live during their studies. What is the best way to frame this fiscally?<\/p>\n

Studying child<\/h4>\n

A characteristic of a student child is that they generally have little income. After all, study financing is not income for tax purposes. However, income from the newspaper round and\/or (side) job is income.<\/p>\n

The student child also usually does not have a lot of assets (savings).<\/p>\n

Who becomes the owner?<\/h4>\n

The first choice is who will own the student house: the parents or the student child. For the parents, this is best approached as an investment. The studying child would make his start in the housing market.<\/p>\n

Bank financing of the child's home purchase is generally not possible, given the child's income. This will require recourse to the parents.<\/p>\n

Parents own student accommodation<\/h4>\n

If the parents own the student accommodation, their return consists of the balance of rent and expenses on the one hand and the increase (or decrease) in value of the property on the other.<\/p>\n

For tax purposes, the student house belongs to the parents' income from savings and investments (box 3). Not the actual, but a flat-rate return, calculated on the WOZ value of the house (possibly reduced by the financing), is the basis for taxation.
\nIf you have a BV as parents, you can finance the purchase of the student house with a loan from the BV.<\/p>\n

The child pays rent for living in the property. To the extent the child pays less than the business rent, it is a gift. This is subject to gift tax. Obviously if and to the extent that the gift (with any other gifts) exceeds the exemption<\/a>.<\/p>\n

Child owns student accommodation<\/h4>\n

The parents' return then consists of the interest received from the child. The claim is taxed in Box 3 with the parents (see above). If the interest is lower than the business interest rate, the difference is a gift, on which gift tax is due. Given current mortgage rates, the business interest rate does not have to be high. The loans should then be subject to the same conditions as a bank mortgage.<\/p>\n

The student child does not pay rent, but does pay owner's expenses, energy costs, maintenance and interest on the parents' loan. Usually, other students besides the child live in the house. The cost of the home can then be met (partly) from the rent paid to the child by the fellow students. The increase in value of the home is for the child (but that also runs the risk of depreciation).<\/p>\n

In most cases, if the student child's home is a tax-owned home, the parents may give the child \u20ac100,000 tax-free for the purchase of the home.
\nIn addition, the child must add the owner-occupied home addition to his income in Box 1 and the financing interest may be deducted. Given the small income, this deduction will (virtually) not result in an income tax refund. To the extent that a loss arises, it may be able to be offset against future positive income.<\/p>\n

Own home<\/h4>\n

The property is an owner-occupied property for tax purposes for the child when:<\/p>\n