WOZ value and notional rental value

Learn about WOZ values and notional rental values in this article.

WOZ value, or property valuation

The value of all real estate is assessed according to the Valuation of Immovable Property Act (Wet Waardering Onroerende Zaken, or WOZ). The WOZ value of a property is used to calculate taxes, such as property tax (onroerendezaakbelasting). 

As of January 1st 2022, rather than taking the gross total content of the home into consideration, the new WOZ waarde is calculated based on usable area, or gebruiksoppervlakte. This means a shift to the property valuation system commonly used by real estate agents and appraisers to ensure that there is a better synergy between the two.

Eigenwoningforfait, or notional rental value

The Dutch tax authority sees homeownership as a type of income and so homeowners must add a taxable amount — namely the eigenwoningforfait (or notional rental value) — to their income. The notional rental value is calculated as a percentage of the property valuation (or WOZ value) of your house.

The notional rental value (NRV) in 2025 for properties with a value between 75,000 and 1,130,000 is 0.35%.

The NRV is based on the WOZ value of the year before so let’s take the average Amsterdam WOZ value in 2023 of € 512,269.

If the WOZ value of your property was € 512,269 in 2023, your notional rental value in 2024 is 0.35% x €  512,269 = € 1,792.

You must add the notional rental value of € 1,792 to your Box 1 income on your tax return. So if your income was €55,600 in 2024, you’ll have to actually submit €57,392 in Box 1 of your 2024 income tax return.

To make sure that you fully understand how these numbers affect you and your financial situation, it’s always good to have a mortgage adviser on your side. Contact us today and Arjen will be happy to answer any questions.