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Complete guide to property tax deductions including mortgage interest, WOZ appeals, and rental income strategies.
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 - €1,330,000 | 0.35% |
| Above €1,330,000 | €4,655 + 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
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:
Information verified with government websites
Disclaimer
This guide is intended for general informational purposes and does not constitute personal tax advice. Please consult a tax advisor for advice on your specific situation.