Pros and cons of owning a house in the Dutch tax system

Notional rental value for owner-occupiers + deductible interest on mortgages fo

In the year 2030 Neeltje van Bussel and Sofie van Sprang are working for the sa
They have the same job and hence they earn exactly the same gross income.
Their salary slip is exactly the same during each month in 2030 and so
their annual statement for 2030 shows the same amount: € 41,380.00.
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Neeltje van Bussel lives in a rental house; she is a tenant.
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Sofie van Sprang however already owns a house. In 2030 she paid on her mortg
1. Interest € 4,900.00
2. Repayment of the loan € 2,500,00

The valuation report of her house, prepared by the government, shows a value o
(The so called “WOZ-value” = Wet Onroerende Zaken)
The notional rental-value rate is 0,7 %

BRACKET SYSTEM BOX 1

BRACKETS: TAXABLE INCOME
BRACKET 1 € 0.00 => € 14,855.00
BRACKET 2 € 14,855.00 => € 34,278.00
BRACKET 3 € 34,278.00 => € 55,683.00
BRACKET 4 > € 55,683.00
Assignment 1:
Calculate the tax to be paid in BOX I for Neeltje van Bussel over the ye
TAXABLE INCOME Neeltje van Bussel

BRACKET 1

Tax still to paid over:

BRACKET 2
Tax still to paid over:

BRACKET 3

Tax still to paid over:

BRACKET 4

Total income tax BOX I:

Assignment 2:
Calculate the tax to be paid in BOX I for Sofie van Sprang over the yea

Gross income Sofie van Sprang

Notional rental value for owners-occupiers

Tax deductible interest on mortgages

Other deductible items

Total deductible items

Taxable income Sofie van Sprang BOX I

BRACKET SYSTEM BOX 1

BRACKETS: TAXABLE INCOME
BRACKET 1 € 0.00 => € 14,855.00
BRACKET 2 € 14,855.00 => € 34,278.00
BRACKET 3 € 34,278.00 => € 55,683.00
BRACKET 4 > € 55,683.00
TAXABLE INCOME Sofie van Sprang

BRACKET 1

Tax still to paid over:

BRACKET 2

Tax still to paid over:

BRACKET 3

Tax still to paid over:

BRACKET 4

Total income tax BOX I:

Assignment 3:
Calculate the "tax-advantage" for Sofie in comparison with Neeltje.

Total tax BOX I for Neeltje:

Total tax BOX I for Sofie:
Tax-advantage for Sofie as owner of her own house

Assignment 4:
Explain the "tax-advantage" for Sofie with a calculation.
Deductible interest on mortgages for houses
Addition (Notional rental value) to the taxable income for Sofie
Decrease taxable income Sofie
Tax-advantage in Bracket 3: € 3.570 x 44,80 % =
e Dutch tax system
tible interest on mortgages for houses.

Sprang are working for the same company.

tly the same gross income.
month in 2030 and so
mount: € 41,380.00.
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tenant.
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In 2030 she paid on her mortgage loan:

e government, shows a value of € 190,000.00

ken)

BRACKET WIDTH TAXES

€ 14,855.00 32.20%
€ 19,423.00 40.90%
€ 21,405.00 44.80%
kokot 52.00%

ltje van Bussel over the year 2030. Use the schedule below.
€ 41,380.00 %

€ 14,855.00 x 32.20%

€ 26,525.00

€ 19,423.00 x 40.90%
 € 7,102.00

€ 7,102.00 x 44.80%

€ -

€ - x 52.00%

e van Sprang over the year 2030. Use the schedules below.

190,000 x 0,7 %

BRACKET WIDTH TAXES

32.20%
40.90%
44.80%
52.00%
 %

x 32.20%

x 40.90%

x 44.80%

x 52.00%

omparison with Neeltje.

r own house

with a calculation.
ouses
axable income for Sofie
44,80 % =
----------

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e the schedule below.

€ 4,783.31

€ 7,944.01
 € 3,181.70

€ - +

€ 15,909.02

the schedules below.

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 +

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