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Second home taxation in Box 3 – not rented


Second home taxation in Box 3 is under discussion in court and the outcome is surprising.

Second home taxation

The second home taxation in this article is about a true second home, hence not an investment being rented out. You use that second home only for personal use.

The taxation in Box 3 is based on an assumed yield in 2024 that is 6,17% assumed yield times 36% taxation is a lot. Example, you purchased in 2017 a second home for EUR 350.000 and in the year 2024 the WOZ value of that investment is EUR 650.000. The taxation is then EUR 650.000 times 6,17% times 36% is EUR 14.437. But is it the EUR 650.000 that should be the base of this calculation or EUR 350.000?

Unrealized gain is not taxed

The basic criteria in global taxation is that unrealized gain is not taxed. The investment is not rented, the investment had not been sold for a EUR 650.000 amount. There has been no gain since the year of purchase.

Court case – garage boxes

A tax payer purchased seven garage boxes in the past. All boxes were not rented, but used for personal use. In the 2017, 2018 and 2019 an assumed yield was determined by the tax office and that yield was taxed.

The tax payer made a complaint, complaint dismissed by the tax office, as these are the rules. The tax payer went to court and the court agreed with the complaint. No income was generated by the garage boxes, hence any taxation would touch the base of the value. Touching the base of the value due to income taxation is forbidden.

How to file your second home in Box 3?

Based on the above court case, and there have been more with similar outcome, the tax base in Box 3 is the EUR 350.000 from my example above. Actually, you do need to report the investment, hence you do. But you instantly file a complaint against the tax assessment, as you made no gain subject to tax over this investment.

Tax is exciting

We are excited about taxation. We can also get excited by a seven garage box investment, but the true excitement is created by the court verdict. On the one hand excited one single tax payer challenged and won from the system.

On the other hand, what about the rest? Truly, why should our system be based on only being serviced after complaint. The Government has the obligation to retro actively adjust the system. As that is not going to happen, everybody that has an investment where the actual gains are less than the assumed yield needs to file complaint. Only complaints can be filed against assessments that have not been finalized yet.



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