Do you have to pay tax if you rent out a room in your house?
14.02.2024Some Dutch people rent out rooms in houses and apartments they own, living there. The question arises about paying taxes. In most cases, such income is not subject to taxation, you just need to meet a number of conditions.
In what cases will taxes not be taken from rent?
If you rent out part of your residential premises for a long-term lease, you do not need to pay taxes if you meet the following criteria:
- The property you are renting is part of your home or apartment, not a separate house or apartment.
- You are registered with the municipality (gemeente) at the address of the rental property and have registered the tenant there.
- The annual income from the rental of housing, together with utilities and other expenses for the rented part, does not exceed the indicated amounts (by year):
- 2024 - 5998 euros;
- 2023 - 5881 euros;
- 2022 - 5711 euros;
- 2021 - 5668 euros;
- 2020 - 5506 euros;
- 2019 - 5267 euros.
These and smaller amounts for renting part of your home do not need to be included in the declaration.
What should those who do not meet the conditions do?
If the rental is short-term, for example, you rent out rooms to tourists under an agreement with services such as Airbnb, Homeaway and Wimdu, you need to pay taxes. The rules for their payment are set out here.
If you earn more than these amounts, the rental portion must be reported in Box 3 of your tax return as an asset. For example, you indicate a quarter of a house. The same Box also takes into account debts associated with the rented part of the housing. If the property was purchased with a mortgage and it has not yet been paid off, you will only be able to deduct interest on the mortgage for the part of the property in which you live; you will not be able to deduct interest on the rented part.
If you earn additional income from a tenant, for example by cooking for them for a fee, such income is reported in Box 1 of the tax return as “Other income” or as business income.
Situations with rental housing are different. If you are in doubt about how to pay taxes correctly or whether you need to pay them at all, order a consultation. Or entrust filling out the declaration to Nalog.nl specialists - they will not be mistaken!
