The real estate agents in Amsterdam might have informed you about the municipal charges and other taxes in Amsterdam, apart from the taxes the national government levies. This is because the Netherlands has a semi-decentralized system of governance that gives quite a lot of responsibility to the local municipal authorities. These charges pay for essential services, flood prevention, canal maintenance, and other services. Let us break it down.
Water Charges and Municipal Charges
Amsterdam residents have to pay various city taxes and municipal charges. Low-income individuals can apply for an exemption from these taxes. There are additional charges for businesses. While some charges are fixed, others are based on the official property value known as the WOZ value. For your convenience, these municipal charges are lumped together in a single annual bill. The taxes in Amsterdam to be paid to the municipality include:
- A waste collection charge is a fixed charge based on a single-person or multi-person dwelling.
- Movable property tax (RRB) only applies to the owners of moveable property like residential or business and the users of business property. It only applies to movable property like boats, kiosks, and caravans. For residential, it is 0.00428% of the property value; for business owners, it is 0.1796% of the property value; and for business tenants, it is 0.1293% of the property value.
- Sewer charges: These charges are a fixed amount of 140.40 Euros per year unless you use a lot of water, i.e. 300m3 per year.
- Property tax (OZB): This tax is based on the property value and must be paid by both owners and users or tenants. However, the amount may differ depending on whether you are the owner. It applies to residential as well as business properties. For residential owners, it is 0.0428% of the official value; for business owners, it is 0.1796% of the official value; and for tenants of business properties, it is 0.1293% of the official value.
Charges Paid to Waternet
This includes the water authority tax paid to the company that maintains all things water in Amsterdam, i.e., Waternet. The cost of drinking water is paid separately, but the payments eventually go to Waternet. It covers various services calculated based on fixed amounts per person, amounts per address, and the WOZ value of the property. These water authority charges are mostly between 300 and 400 Euros per year.
Bottom Line
So make sure you include the cost of taxes in your budget if you plan to live in Amsterdam. Apart from the above mentioned ones, the taxes include utility bills like electricity. etc., low-income individuals may also have some relief from the municipal taxes in Amsterdam to ease the financial burden.
