Many of you have asked what eigenwoningforfait means in your annual Dutch income tax return. Here is a brief overview of what you need to know.
Eigenwoningforfait is a notional (fictional) income that the Dutch Tax Administration (Belastingdienst) adds to your taxable income if you own and live in your own home.
It is not an actual payment, but a calculated amount that increases your taxable income.
The idea behind this rule is that owning your own home provides a financial benefit—such as not having to pay rent—and this benefit is taken into account for tax purposes.
How is it calculated?
The Belastingdienst uses the property’s WOZ value (official property value) as the basis.
- A percentage of the WOZ value is treated as notional income.
- In 2026, the eigenwoningforfait generally ranges between 0.50% and 0.80%, depending on the value of the property.
- The calculated amount is added to your Box 1 income in your tax return.
Example
- WOZ value: €350,000
- Eigenwoningforfait: 0.60%
- Notional income: €350,000 × 0.006 = €2,100
This amount is added to your taxable income.
What are the consequences?
- Your taxable income increases, which may result in higher income tax.
- If you have a mortgage, the mortgage interest is generally tax-deductible. This often partly or fully offsets the impact of the eigenwoningforfait, especially during the first years of the mortgage.
Tip: The higher your deductible mortgage interest, the smaller the actual tax impact of the eigenwoningforfait.