You let a “second” home
Many landlords who let their property through us are curious about the tax implications. If you let a home that you own but do not live in, it forms part of your assets in Box 3. You pay tax on these assets in accordance with the applicable rules.
Example
You have bought a house in Rotterdam where your son will study. You let the property to your son and several fellow students. As this is not the owner-occupied home you live in, it is important to declare the property’s value (its WOZ value as at 1 January) as an asset in Box 3. You do not have to declare the rent to the Dutch Tax Administration. If you took out a mortgage to buy the property, you declare it as a debt in Box 3.
Rent taxed in Box 1 because of active asset management?
You may be taxed under Box 1 if you provide services in connection with letting your property. This is known as “active asset management”. In that case, the total rental compensation may be taxed as income from other activities in Box 1. Whether this applies depends on how much work you undertake to achieve a higher rental income.
Avoid risks with rental management
If you leave the work involved in letting and managing the property to Riva, you do not face these risks. You can then benefit from the tax advantages of Box 3 without the risk of being assessed under Box 1. We also do not charge additional fees for management, allowing you to enjoy maximum returns with peace of mind. If you choose to let your property through us, you receive our most comprehensive service at a very attractive rate.