Tax changes for landlords in 2025 – what does this mean for your return?

Private landlords will feel this most. Even so, investing in Rotterdam property remains attractive, especially if you approach it smartly and target the right audience, such as expats and international employees.

At Rotterdam Rental Service, we help landlords every day to find reliable tenants, optimise rental pricing, and protect returns, despite changing rules.

The key tax changes for landlords explained (in plain language)

1) Vacant value ratio rises to 95%
The tax office (Belastingdienst) looks at your property’s WOZ value (set by the municipality).
A few years ago, you were taxed on roughly two-thirds of that value.
From 2025, it becomes 95% of the WOZ value.
Result: you pay more tax because the tax office treats your property as being worth almost its full value.

2) Notional (deemed) return increases to 6.17%
The tax office assumes you earn a return on a rented property, even if no one knows the exact figure.
So they calculate a “fictional profit”.
In 2021 this was 4.5%; in 2025 they act as if you earn 6.17%.
Result: higher taxes, because the government assumes you “earned” more even if that’s not the case.

3) Box-3 tax rate rises to 32%
You pay tax on that deemed profit.
The rate goes from 31% to 32%.
Result: you hand over a bit more tax again.

4) Transfer tax rises to 10.4%
Buying a property to rent out? You pay transfer tax at purchase.
It was 8% in 2024; in 2025 it’s 10.4%.
Result: buying an investment property is more expensive before you even start renting it out.

In short:
The tax office values your property higher, assumes you make more profit, charges a higher tax rate, and purchasing has become pricier.
That’s why landlord costs rise significantly in 2025.

What does this mean in practice? Two Rotterdam examples

Example 1: Apartment renting for €1,750 per month

• WOZ value: €400,000

• Annual rent: €21,000

• Taxable value (95%): €380,000

• Deemed return (6.17%): €23,446

• Tax (32%): €7,502

In 2021 you would have paid roughly €3,740 in tax. In 2025 it’s ~€7,500 per year almost double.
Still, a €1,750/month property can be attractive if you rent smartly to reliable expats: demand in Rotterdam is strong and vacancy is low.

Example 2: Premium home renting for €2,500 per month

• WOZ value: €600,000

• Annual rent: €30,000

• Taxable value (95%): €570,000

• Deemed return (6.17%): €35,169

• Tax (32%): €11,254

Here too, the tax burden has risen sharply. Yet this property can still be profitable especially when rented via Rotterdam Rental Service to international companies and their staff. This target group is stable, reliable, and typically pays market-level rents.

How to respond smartly to these changes

• Optimise your rent price – We calculate what the market can bear.

• Prevent vacancy – We fill your property quickly via our expat network.

• Consider temporary letting – Stay flexible as rules evolve.

• Use professional management – Fewer headaches, better returns.

• Ask for advice – Our letting specialists will calculate what you’ll really net in 2025.

Conclusion

Taxes are rising in 2025, but that doesn’t make renting unprofitable.
With the right strategy, target audience, and professional support, you can still achieve a stable return especially in a strong expat city like Rotterdam.

Also read: Tax advantages of professional property management – why working with a Rotterdam letting agent pays off