You can save money in several ways by filing an objection. You can think of property tax, inheritance tax and, for example, transfer tax. All these taxes are based on the WOZ value of your home. This article will discuss the main savings resulting from a reduction of the WOZ value due to an objection. Curious about what a WOZ value is exactly? Read our article. We will use the same example for each major tax. A house with a WOZ value of €400,000 will become €360,000 after a successful objection. Wondering how much money you can save if you object? Calculate it with our savings calculator!
Property tax (onroerendezaakbelasting)
The most well-known tax in the area of the WOZ value is the municipal tax. All Dutch owners of immovable property will have to deal with a WOZ decision. This decision states the newly determined value of your immovable property on which you must pay property tax (OZB). You must pay a percentage on the WOZ value of your immovable property, which is determined annually by the municipality. The percentage differs per municipality, which means that the savings on tax may differ if your WOZ value is reduced.
At an OZB rate of 0.18%, you would have to pay an amount of €720.00 with a WOZ value of €400,000. If the WOZ value is €350,000, you will have to pay €630.00. So you already save € 90.00 after a successful objection to OZB.
Water board tax (waterschapsbelasting)
Every household in the Netherlands pays water board tax. With this tax, the Water Board takes care of, among other things, dikes in the Netherlands. When you own a home, you will have to pay a variable amount in addition to a fixed amount of water board tax, which is based on the WOZ value of your home. The water board tax rates are different every year. In addition, the water boards in the Netherlands are changing the composition of the tax to tax different groups differently.
With the 2022 rate, you save €6.24 with a successful objection to your WOZ value due to the reduction.
Notional rental value (eigenwoningforfait)
The tax authorities in the Netherlands believe that you derive pleasure from being able to live in a house. The tax authorities want to tax that enjoyment as a form of income. As a result, a percentage of your WOZ value is added to your income. This tax is also referred to as the notional rental value. When the WOZ value of your home is reduced, this will therefore affect your income in the tax year. Depending on your income, a reduction in the WOZ value reduces your tax.
With the notional rental value of 2022 of 0.45% over the WOZ value of €400,000, the reduction in the WOZ value reduces your income in box 1 by 225 euros. Depending on your total income in box 1 and the current state of your home acquisition debt, the reduction of your WOZ value can result in savings of up to €111.38.
Wealth tax (vermogensbelasting)
If you do not use the house as your own home, but as a holiday home, investment or as a house to rent out, you pay wealth tax. The WOZ value of the home will then be added to your savings and other assets. You then pay tax on this capital. Again, the amount of tax on your home depends on the other assets you own. Wondering how much money you can save if you object? Calculate it with our savings calculator!
If the WOZ value of your home is reduced by €50,000, you will save a maximum of €2,845.00 if you have more than €950,000 in assets. If you have more than €50,000 in assets but no more than €950,000, you save €2,250.50 per year in wealth tax.
Gift and inheritance tax (schenk- en erfbelasting)
When you inherit or receive a property, you must pay tax. The value of the home is the basis for taxation. The WOZ value is a starting point for the valuation of the home. The percentage for gift tax depends on the relationship between the donor and the recipient of the home. When the donor is close to the recipient, such as a spouse, you pay less tax than if you are a grandchild of the donor. Wondering how much money you can save if you object? Calculate it with our savings calculator!
If you are gifted a home whose WOZ value has been reduced by €50,000, you will save a minimum of €10,000 and a maximum of €20,000 in gift tax. This depends on your relationship with the donor.
If you inherit a house of which you the Reduced WOZ value by an amount of €50,000, you will save a minimum of €10,000 and a maximum of €20,000 in inheritance tax. Please note: if you are the spouse or partner of the deceased, you have a high exemption, which means that you may not pay any inheritance tax at all if the inherited assets do not exceed €671,910 in 2021.
Save on tax!
So, given the above calculations, you can save a lot of money by successfully submitting an objection because the WOZ value is used when determining taxes. Paying taxes is no fun. If you are unsure about your WOZ value, contact us. Our lawyers are specialized in WOZ en are happy to help you free of charge if you decide to appeal. Appeal easily and free within five minutes.