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How is income which I receive from renting out a room in my house to a student taxed in the Netherlands?

Question:
 
I have rented one of the rooms in my apartment to a student. She is going to be registered with IND at the end of the month (as she is a foreigner) and they will register her officially with the GBA. I sign with her a rental agreement.
 
How should I reconcile with belastingdienst my income.? Should I report it directly after her registration? Or now? Or add the income to the annual tax return form or...????? What is the proceeding in such a case?
 
Answer:
 
I expect that that the income you receive from the student remains tax free. There is a tax exemption for income earned with renting out a room, in Dutch called "kamerverhuurvrijstelling".
 
Requirements:

  • The income you receive (rent including compensation for use of furniture, energy etc.) is not above a certain amount.

    2016: max. € 5,069
    2015: max. € 4,954
    2014: max. € 4,748
    2013: max. € 4,536

  • The student is registered with the GBA at your address
  • The rental agreement is signed for a longer period (for example a year)
  • The student rents a room (not an independent part of the property)

If you meet all the requirements the rental income will be tax free and on the other hand mortgage interest which sees pro rata on the rented room can still be deducted.
 
If the requirements are not met the room will be taxed in box 3 as income from investments and you will not be able to deduct the mortgage interest pro rata for this room anymore.
 
The exemption is also applicable if you rent out a room to other persons, so you don't specifically have to rent out a room to a student. It can also be a friend, colleague or somebody else. 
 
 
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Comments (2)
Comment by Subin on Mon, Feb 22nd, 2016 at 10:16 PM
is the rule any different if the room is rented out to another working individual? thx
Comment by Arjan Enneman on Tue, Feb 23rd, 2016 at 12:00 PM
No difference. Exemption is also applicable if you rent out a room to another working individual. I have updated the article.
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