The changes in laws and regulations to both the rental and purchase of houses are listed below. The changes to the energy ceiling and rates are found at the end of this post.
Mortgage interest deduction further down in 2023
For people with an income above € 73,031, the mortgage interest deduction will decrease further in 2023, from 40% to 36.93%. If you earn less than 73,031 euros, then this change will not affect your deductibles.
Gift exemption owner-occupied home (jubelton) is going down.
People between the ages of 18 and 40 can now receive a tax-free gift for their own home of € 106,671, but from the first of January 2023, the gift exemption for owner-occupied homes will reduce from € 106,671 to € 28,947. This amount is equal to the one-off exemption for a tax-free gift that parents donate to their children. The one-off donation for the purchase of a house does not necessarily have to take place between parents and children. Other family or friends can also help through the jubelton. However, the exemption will be abolished entirely on 1 January 2024, as agreed in the coalition agreement.
The transfer tax rate is 10.4%
The general transfer tax rate will increase from 8% to 10.4%. The starters’ exemption will continue to apply, and the house value limit will be raised from 400,000 to 440,000. The reduced rate of 2% that applies to homebuyers below 35 years ( for primary residence) will continue to apply.
Notional rental value for homes up to € 1.2 million reduced to 0.35%
The notional rental value for homes between €75,000 and €1,200,000 will be reduced to 0.35%. For homes above €1,200,000, the percentage remains 2.35%.
National Mortgage Guarantee
Do you want to buy your house with a National Mortgage Guarantee (NHG)? From 1 January 2023, €405,000 will be the NHG limit. Do you invest in energy-saving facilities? Then the NHG cost limit rises to a maximum of € 429,300.
Young people can live at home longer without consequences for their parents’ benefit.
As of January 1, 2023, the cost-sharing standard will be changed so that residents, young people up to 27, no longer count as cost-sharing roommates for their housemates.
The price ceiling for gas and electricity
The price ceiling for energy goes into effect. This means that in 2023 households and small businesses will pay a maximum price for gas and electricity up to a certain level of use. A maximum rate applies up to an annual consumption of 1200 cubic meters of gas, 2900 kilowatt hours of electricity and 37 gigajoules of district heating. Those rates, including taxes, are 1.45 per m3 gas, 0.40 per kWh electricity and 47.38 per GJ district heating. Above the ceiling, you pay the regular (higher) rate to your energy company.
For Eindhoven News: Beena Arunraj