Cautiously positive news for private landlords
The Affordable Rent Act will be relaxed. Specifically, it involves a revision of the WWS (residential rating system). Fewer points will soon be needed to get/stay in the free sector. Fewer houses will therefore fall under the regulated middle rental sector.
In addition, small private landlords will be partially exempted from the most stringent regulations. It is recognized that this group of landlords, many of whom own one or a few properties, has been caught in a ‘perfect storm’ and is disproportionately affected by the accumulation of fiscal and regulatory measures.
What will this exception look like and when will it take effect? That is still unclear. Nevertheless, it seems very likely that the government has realized that there should be concessions for small landlords.
On the other hand, however, in general terms, the tax burden in Box 3 will start to increase. The flat rate for other assets - including real estate - will rise by 1.78% from 2026. Simultaneously, the tax-free assets in box 3 will be reduced (to €51,396). As is known, following a Supreme Court ruling, the tax authorities are only allowed to tax the actual return in box 3. In that context, a rebuttal rule is in the pipeline, expected this summer. The main rule will be: your investment properties will be taxed in box 3 according to the flat rate, IF you can prove that your actual return in box 3 is lower.
To assess the annual actual return on a property, any (unrealized) increase in value in that year will also count.
