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Letting holiday homes

Letting a holiday home is regarded as a professional activity, which means that the landlord is classified as an entrepreneur. This does not apply if you have bought the property in question for the purpose of occupying it yourself and if you only sporadically let it to third parties. If you let the property for at least 140 days a year, the tax authorities will assume in any event that you are liable for VAT. The VAT rate for the letting of holiday accommodation is 6%.

Please note that a holiday home in the Netherlands is not considered to constitute a permanent establishment. If you let a holiday home in the Netherlands, you will nevertheless be regarded as a non-resident entrepreneur. If the tenant is a private individual, you will be liable for VAT. If you let a holiday home to an entrepreneur (for example, a firm managing a holiday park), the entrepreneur will need to pay the VAT owed on the rent.

For further information on the rules applying to the private use of holiday homes see: What conditions apply to deducting or reclaiming VAT?

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