Letting immovable property

Letting immovable property is usually exempted from VAT, except for the letting of:

  • permanently installed equipment and machines
  • hotels, guesthouses, campsites and holiday arrangement businesses
  • parking lots for vehicles, moorings and storage places for sailing vessels
  • immovable property whereby the lessor and lessee both choose not to apply the exemption
    This is the option for taxable letting.

Do you let an immovable property to an entrepreneur who is established in the Netherlands? Then the Dutch entrepreneur will pay the VAT over the rent.

Do you let a holiday home? Other regulations apply to this. You can find further information about this under Letting holiday homes.

Option for taxable letting

The option of taxable letting means that the lessor and the lessee choose not to apply the VAT exemption. The VAT is then reverse-charged. This results in the lessor being able to deduct the VAT charged over the purchase of the immovable property as well as over the maintenance costs. As a consequence the lessor is then able to calculate a lower rent. The option of taxable letting is only possible if the lessee is able to deduct at least 90% of the VAT charged over the rent.

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