Room rental exemption for 2025 raised to €6,324 per year
To encourage people to rent out part of their homes, the Dutch Government has the Room Rental Exemption. Up to €6,324 per year rental incomes are in certain situation tax free. In this blog you'll read more about it.
To encourage people to rent out part of their homes, there is the room rental exemption. If you meet the conditions, rental income up to €6,324 (2025) per year is tax-free. You do not need to declare this income in your income tax return. With this measure, the national government aims to increase the availability of rooms and thus reduce the room shortage. Hospi Housing supports this; it is a significant reason for people to start renting out. In this blog, you will read everything about the room rental exemption in 2025.
What is the room rental exemption?
The room rental exemption is a tax regulation from the Tax Authorities to encourage room rental in one's own home. If you meet the following conditions, you do not need to declare rental income in your income tax return:
1. Rental income not higher than €6,324 (2025)
Your total rental income must not exceed €6,324 on an annual basis (2025). Note: this includes all fees associated with the rental, such as charges for energy, internet, or use of a washing machine or dryer. Note: if you rent out for 12 months, your income must not exceed €6,324 / 12 = €527 per month. If you rent for less than 12 months a year, a higher amount per month is tax-free.
2. The space you rent is part of the dwelling
To qualify for the room rental exemption, you must live in the dwelling of which you are renting a part. You must have at least 50% of the dwelling for personal use and share facilities such as the kitchen, bathroom, or toilet.
3. No tourist rental
The room rental exemption is intended to encourage people to temporarily make residential space available. Tourist rentals, such as rentals through Airbnb, are not covered. Do you rent out for shorter periods? Then you can find more about the temporary rental of your own home at the Tax Authorities' website.
4. You and your tenant are registered at your address
It is important that both you and your tenant are registered at your address. Most municipalities allow homestay rentals rentals without a permit. Not sure about the rules in your municipality? At Hospi Housing, we are happy to personally look into it with you and help you get started. Contact us directly.
Do I have to pay taxes on my rental income?
Renting out a part of your rental property usually has no consequences for your income tax return. A condition is that you receive a normal rent and that you do not offer additional (paid) services such as providing breakfast or dinner. Then it may be that you have to pay taxes.
Do you have an owned property and meet the conditions for the room rental exemption? Then you do not have to pay taxes on your rental income! You do not need to declare the rental income in your income tax return. You file a tax return in the same way as if you did not rent out a room or part of the dwelling. Do you have an owned property with a mortgage? Then note that some mortgage lenders do not allow or only allow hospitable rentals under conditions. Want advice on this? Hospi Housing is here to help.
Do you not meet the conditions for the room rental exemption? Even then, you do not immediately pay tax on the received rent and do not need to declare the rental income in your tax return. However, you may pay tax on the value of the rented part of your home. In this blog, you will read exactly how this works and when room rental is or is not tax-free.
Room Rental Examption and tax returns in 2023, 2024, and 2025
From March 1, 2025, you can file a tax return on your 2024 income. This means that for this declaration, the amount of the room rental exemption in 2024 applies, namely: €5,998 per year. Are you a bit behind and also need to do your return for 2023? Then note that for that year, the rental income on an annual basis could not be higher than €5,881.
Are you considering renting out a room in your own home in 2025, but still have questions about rental income and taxes? Hospi Housing is ready to advise you for free and guide you, exploring the possibilities in your specific situation together. Sign up now, and we will contact you soon!