WOZ (Waardering Onroerende Zaken) value determines the property’s value and taxes homeowners must pay annually in the Netherlands.
1. The homeowners’ tax.
2. The municipality taxes such as property tax and sewage tax.
How does the municipality calculate the WOZ value? The WOZ value is computed using similar property’s value and characteristics, for example, construction year, location, size, and state of maintenance. You can check your property value by visiting www.wozwaardeloket.nl
1. The WOZ value can help you to indicate the price if you plan to sell your home. It gives you an estimated value of the market.
2. It is possible to use the WOZ value to lower the mortgage interest rate if your property’s value increased during the years.
1. The rising value of the property increases municipality taxes (property and waste taxes).
2. WOZ impacts income tax
3. WOZ impacts heritage tax
Despite recent reports of falling average home sales prices, the WOZ tax base of homes is expected to rise sharply in the coming weeks for many people, with an average increase of 17% this year. It should be noted that this increase is based on national averages and is not reflective of the recent dip in housing market prices, as the WOZ tax base for 2023 is determined by market developments in 2021.
In order to determine the WOZ value of a property, the municipality takes into account various factors, such as the market value of the home. To gather a comprehensive picture, the municipality obtains not just the sales prices from the Land Registry but also the current asking prices of homes on the market. Based on recent years' analysis, it appears that the rise in WOZ value aligns with the previous year's trend of increasing house prices.
Are you planning to set a rental price for your property(s) soon? Keep in mind that the central government has implemented a new rule that affects the amount of rent. As of May 1, the WOZ value may be less critical.
The WOZ value indicates the market value of a home. This is determined by averaging the sales prices of comparable homes in the neighborhood. The municipality does not consider the homes' condition, renovations, or location. This means that the WOZ value does not always correspond to the actual market value.
The WOZ value calculates various taxes, including sewerage charges, notional rental weight, and real estate tax. This value affects the rent as well—the maximum rent increases as the WOZ value increases. And the government wishes to alter that.
Rising housing prices increased the WOZ value in 2021. On average, the WOZ value increased by 8.9% in 2021, which is the most significant rise compared with previous years. The WOZ values that are published in 2021 are calculated based on data from 2020.