Fiscal aspects when purchasing a holiday accommodation in The Netherlands

Various fiscal aspects are involved when you purchase a holiday accommodation in The Netherlands. This includes, for instance, transfer tax, VAT and income tax. The differences between these fiscal aspects depend on the purposes for which you purchase a holiday accommodation.

How will you be using the holiday accommodation?


Holiday accommodation for private use

Transfer tax
When purchasing a holiday accommodation for full private use, one of the following three situations will present itself.

  1. You are purchasing a new holiday accommodation.
  2. You are purchasing an existing holiday accommodation that was first used two years ago at most.
  3. You are purchasing an existing holiday accommodation that was first used more than two years ago.

In the first two situations, an exemption of the transfer tax applies. In the third situation, the 2% transfer tax is owed.

VAT
A new holiday accommodation or a holiday accommodation that was first used two years ago at most is taxed with 21% VAT. This VAT cannot be reclaimed with the Tax Authority.

Income tax
The purchase of a (new or used) holiday accommodation is taxed for income tax using box 3. The tax base is the WOZ value of the year preceding the one for which taxes are declared.

More information?
Would you like more information about the fiscal aspects when purchasing a holiday accommodation for private use? Schedule an appointment with one of our advisers free of commitment*.

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* The TopParken advisers are no legal fiscal experts, though they will be able to advise you and connect you with the correct parties we cooperate with.



Holiday accommodation with a combination of private use and rental purposes

Transfer tax
When purchasing a holiday accommodation for partial private use/partial rental purposes, one of the following two situations will present itself.

  1. You are purchasing a new holiday accommodation.
  2. You are purchasing an existing holiday accommodation that has been used before.

Delivery in the first situation (purchase of a new holiday accommodation) is exempt from transfer tax. Delivery in the second situation (purchase of an existing holiday accommodation) is taxed with a transfer tax of 2%.

In case of the purchase of an existing holiday accommodation that has been rented out temporarily (up to 24 months) and that was not used before that time, a request can be submitted with the Tax Authority asking for eligibility for an exemption of the transfer tax.

When purchasing an existing holiday accommodation which was purchased by the previous owner less than six months ago, a decrease in the taxation of the transfer tax takes place under certain circumstances.

VAT
The purchase of a new holiday accommodation is taxed with 21% VAT. This also applies to the purchase of an existing holiday accommodation which was first used two years ago at most. The purchase of a holiday accommodation that was first used more than two years ago is exempt from VAT.

Income tax
Ownership of one holiday accommodation is taxed for income tax using box 3. The rental revenues and any profits resulting from resale remain untaxed. On the other hand, any additional costs (including interest burdens and depreciation) are not deductible.

A prerequisite for processing using box 3 is that the holiday accommodation is managed in a "regular" manner. This will usually be the case if you own one holiday accommodation, but the situation may be different if you own several holiday accommodations. An example is when labor intensive activities (maintenance, etc.) are carried out by the owner themselves on a regular basis. In that case, the Tax Authority may take the viewpoint that "Gains from other activities" or "Profits from enterprise" will apply. This could mean that both the net rental revenues and the future value changes will be taxed using box 1 at a rate of up to 52%.

More information?
Would you like more information about the fiscal aspects when purchasing a holiday accommodation for a combination of private use and rental purposes? Schedule an appointment with one of our advisers free of commitment*.

Make an appointment
 

* The TopParken advisers are no legal fiscal experts, though they will be able to advise you and connect you with the correct parties we cooperate with.



Holiday accommodation for full rental purposes

When purchasing a holiday accommodation for full rental purposes, one of the following two situations will present itself.

  1. You are purchasing a new holiday accommodation.
  2. You are purchasing an existing holiday accommodation that has been used before.

Delivery in the first situation (purchase of a new holiday accommodation) is exempt from transfer tax. Delivery in the second situation (purchase of an existing holiday accommodation) is taxed with a transfer tax of 2%.

In case of the purchase of an existing holiday accommodation that has been rented out temporarily (up to 24 months) and that was not used before that time, a request can be submitted with the Tax Authority asking for eligibility for an exemption of the transfer tax.

When purchasing an existing holiday accommodation which was purchased by the previous owner less than six months ago, a decrease in the taxation of the transfer tax takes place under certain circumstances.

VAT
The purchase of a new holiday accommodation is taxed with 21% VAT. This also applies to the purchase of an existing holiday accommodation which was first used two years ago at most. The purchase of a holiday accommodation that was first used more than two years ago is exempt from VAT.

Income tax
Ownership of one holiday accommodation is taxed for income tax using box 3. The rental revenues and any profits resulting from resale remain untaxed. On the other hand, any additional costs (including interest burdens and depreciation) are not deductible.

A prerequisite for processing using box 3 is that the holiday accommodation is managed in a "regular" manner. This will usually be the case if you own one holiday accommodation, but the situation may be different if you own several holiday accommodations. An example is when labor intensive activities (maintenance, etc.) are carried out by the owner themselves on a regular basis. In that case, the Tax Authority may take the viewpoint that "Gains from other activities" or "Profits from enterprise" will apply. This could mean that both the net rental revenues and the future value changes will be taxed using box 1 at a rate of up to 52%.

More information?
Would you like more information about the fiscal aspects when purchasing a holiday accommodation for full rental purposes? Schedule an appointment with one of our advisers free of commitment*.

Make an appointment
 

* The TopParken advisers are no legal fiscal experts, though they will be able to advise you and connect you with the correct parties we cooperate with.


 

The above fiscal aspects only apply in case:

  • The purchase of the holiday accommodation is made by a private person.
  • The holiday accommodation is located at a holiday park.
  • The holiday accommodation is meant for private use, for rental purposes or for a combination of these two options.
  • The services of the holiday park's manager will be used for any rental processes.
  • The owner will not use the holiday accommodation as a primary accommodation.