Personal income tax in the Netherlands on Dutch real estate owned by non residents
When owning real estate located in the Netherlands, and the owner is a non resident of the Netherlands, Dutch personal income tax applies on this real estate.
This is because the Dutch tax law for non-residents specifically mentions that Dutch real estate is subject to Dutch tax liability. This Dutch tax liability is allowed in the tax treaties as entered into by the Netherlands.
To determine the applicable tax burden, a distinction is to be made between active and passive ownership of Dutch real estate. In case of active ownership the net rent and capital gain is taxed at the progressive tax rates. Passive income is subject to equity tax.
We can advise on your situation, prepare your Dutch tax return and act as your contact person with the tax office, so any letters from the Dutch tax office directly reaches our office and we can act accordingly. If required we can also assist in order to obtain the mandatory BSN (Dutch social security number).