Complete guide to Dutch property tax deductions: mortgage interest, WOZ appeals, eigenwoningforfait, and room rental rules—plus practical examples.
Move from explanation to a personal calculation with current rates.
Open calculator2025-12-12
Belastbaar editorial team
Max Deduction Rate
37.5%
Capped at second tax bracket
The hypotheekrenteaftrek is one of the largest tax deductions for Dutch homeowners.
How It Works: Mortgage interest on your primary residence is deductible from Box 1 income, reducing your taxable income.
Eigenwoningforfait (Imputed Rental Value): You must add back a deemed rental income based on WOZ value:
| WOZ Value | Percentage |
|---|---|
| Up to €12,500 | 0% |
| €12,500 - €25,000 | 0.1% |
| €25,000 - €50,000 | 0.2% |
| €50,000 - €75,000 | 0.25% |
| €75,000 - €1,350,000 | 0.35% |
| Above €1,350,000 | €4,725 + 2.35% of excess |
Example: WOZ value €400,000 × 0.35% = €1,400 eigenwoningforfait Mortgage interest €8,000 Net deduction: €8,000 - €1,400 = €6,600
Home value €400,000, mortgage interest €10,000/year
Ensure all eligible mortgage interest is claimed. This includes interest on loans for home purchase, improvement, or maintenance.
Appeal Deadline
6 weeks
After receiving WOZ notice
Luxury Threshold
€1,330,000
Higher forfait above this value
Appealing your WOZ (Waardering Onroerende Zaken) value can reduce property taxes.
Lower WOZ affects:
Many companies offer WOZ appeals on contingency:
| WOZ Value | Forfait Rate |
|---|---|
| €0 - €12,500 | 0.0% |
| €12,501 - €25,000 | 0.1% |
| €25,001 - €50,000 | 0.2% |
| €50,001 - €75,000 | 0.25% |
| €75,001 - €1,330,000 | 0.35% |
| €1,330,001+ | €4,655 + 2.35% |
Your WOZ value affects property tax (OZB), water authority tax, and eigenwoningforfait. About 33% of objections succeed in lowering WOZ.
Tax-Free Exemption
€5,999
Annual rental income limit
The kamerverhuurvrijstelling allows tax-free rental income from renting rooms in your own home.
Rent out a spare room in your home and earn up to [[property.roomRentalExemption]] per year completely TAX-FREE.
Renting out property temporarily (Airbnb, vacation rental) has specific tax rules.
If you rent your own home while away:
Second homes are in Box 3, but rental income changes this:
Platform Reporting: Airbnb, Booking.com, etc. report income to Dutch tax authorities. Don't assume rental income is undetected.
If you occasionally rent your entire home (e.g., during holidays), 70% of rental income is taxable in Box 1. The 30% automatic expense deduction applies.
Use our free calculators to calculate your personal situation:
You can deduct all mortgage interest on your primary residence, minus the eigenwoningforfait (imputed rental value). The tax benefit is capped at the second bracket rate of 37.48%.
The eigenwoningforfait is a percentage of your WOZ value added to your income. For homes valued €75,001-€1,330,000, the rate is 0.35%. For example, a €400,000 home adds €1,400 to your taxable income.
The WOZ value is your municipality's annual assessed value of your home (based on the valuation date of 1 January of the previous year). It is used to calculate local property taxes (OZB) and influences the eigenwoningforfait in income tax. It can differ from the market price.
Your WOZ value is determined by your municipality (gemeente) and is shown on your WOZ assessment. To sanity-check it, compare your home to recent sales of similar properties (same neighborhood, size, type, and condition). If key details are wrong (e.g. living area, maintenance issues), it can materially affect the WOZ.
You can usually see your WOZ value on your annual WOZ assessment from your municipality. In many cases you can also view it digitally via your municipality portal and/or WOZ-waardeloket. If you want to challenge the WOZ, make sure the property details (surface, type, condition) are correct.
If you believe your WOZ value is incorrect (often: too high), you can usually file a formal objection (bezwaar) with your municipality within 6 weeks of the assessment date. Strong evidence includes recent comparable sales at lower prices and documentation of defects/needed repairs. A lower WOZ can reduce local property tax (OZB) and can also affect eigenwoningforfait. Note: requesting a higher WOZ is possible in some cases, but it may increase taxes.
Yes, if you rent out a room in your primary residence and the annual rental income is €5,999 or less, it is completely tax-free (kamerverhuurvrijstelling). Above this amount, all income is taxed.
Mortgage interest deduction and property taxation
WOZ property valuation information
Disclaimer: This guide is intended for general informational purposes and does not constitute personal tax advice. Please consult a tax advisor for advice about your specific situation.