Do I pay taxes when I rent out a room in my house? Tax return for 2024
Did you rent out a room in your house or do you plan to do so? Good news: chances are big you don't pay taxes over the rental income. How?
It's that time of the year again: the blue envelope on the doormat. From March 1 onwards you can fill in your Dutch tax return over 2024. Did you rent out a room or a part of your house in 2024? In most cases you don't have to declare the rental income on your tax return. In this blog you will read about room rental and taxes in the Netherlands.
The Dutch government wants to promote homestay and homesharing. If more people rent out a part of their house, more rooms will be available on the strained Dutch housing market. This decreases the enormous room shortage. Especially for students and young people, homestay and homesharing can be an attractive housing option.
Do I pay taxes when I rent out a room in a rental property?
In the Netherlands, if you live in a rental property and you temporarily rent out (a part of) your home, you usually don't have to declare the rental income on your tax return.
Proviso is that you receive a reasonable rent for the (part of the) house you rent out. This means rent plus a reimbursement for energy and other costs. If you also offer services, such as providing breakfast and dinner or organizing activities, it could be seen as 'income from other work' which is charged in box 1.
I own a house and rent out a room. Do I have to pay taxes?
Usually not. To stimulate homesharing, the Dutch government introduced the 'kamerverhuurvrijstelling'. This tax arrangement is meant for people with an owner-occupied home who rent out a room or part of their home.
In 2024 the maximum yearly rental income was €5.998. This includes the total rental income (including energy and extra costs) on a yearly basis. So, if you rented out a room for 12 months, the monthly total rent must not exceed (€5.998/12 =) €499,8 per month.
If you meet the requirements of the Dutch 'kamerverhuurvrijstelling', you don't pay taxes over the rental income. You don't have to declare the rental income on your tax return and you file your tax return the same way as normal. If you don't meet the requirements you still don't directly pay taxes over the rental income, but it could be you pay taxes over the 'value of the rented part of your house'. Read more about the 'kamerverhuurvrijstelling' and it's conditions on the website of the Dutch tax authorities.
Did you rent a room in your home for a short period of time, for example to tourists? Then you do have to pay taxes over the rental income. This includes periods shorter than two weeks and without a rental contract. Read more about temporary rental and taxes.
Tax return in the Netherlands in 2024
Did you - in 2024 - rent out a room in your rental property or in your owner-occupied house and did the total rental income not exceed €5.998? Then you don't have to declare the rental income in your tax return over 2024.
If you own a house and your total rental income in 2024 did exceed €5.998, it might be you have to pay taxes over the value of the rented part of your home. Are you not sure what to do? Consult the Dutch Tax Authorities or a financial advisor.
Do you consider renting out a room in your own house or rental property, but do you have questions about rental income and taxes? Hospi Housing gives free advice and personal guidance. Sign up for free and we will contact you as soon as possible.