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Only your primary residence gets to be tax-free in box 1 though? Any other real estate you own falls under box 3 and and is thus subject to the wealth tax ("ver
by WJW 5y ago
Only your primary residence gets to be tax-free in box 1 though? Any other real estate you own falls under box 3 and and is thus subject to the wealth tax ("vermogensbelasting").
See https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/werk_en_inkomen/interneteconomie/ik-verhuur-mijn-huis/verhuur-2e-woning https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/... for details (Dutch page)
- jacquesm 5y agoWealth tax is a very small fraction of the value of the property.
- yunohn 5y agoI think there’s a clear imbalance between stagnant money in a bank account versus rent-generating property - both being taxed as wealth tax. Hence, demand for real estate.
- jacquesm 5y agoNot to mention that the Dutch wealth tax assumes that you are making a quite specific return on your capital, whether you actually do or not isn't something the tax man cares about. With 'savings' as an asset class now a liability there is a huge flight of capital into real estate, which so far has been pretty resilient against this.