A new way to calculate property values in the Netherlands could affect local taxes

The authorities have decided to introduce a more accurate method based on the actual floor area and house prices in the neighborhood.

According to Oldypak LP real estate report, the method of calculating official property values is undergoing a major overhaul. Millions of homes may cost more or less starting in January.

The new calculations are based in part on floor size rather than cubic meters. According to Nu.nl, about 250 of the 352 local government districts in the Netherlands will soon switch to the new system — the rest have already done so.

“The methodology for calculating WOZ values was not accurate enough,” said Inspector Ivo Lechner. WOZ values are used to calculate local government taxes, so some households may end up paying more or less.

“In addition to the actual size of the property, local housing prices and the sales value of comparable buildings have a strong impact. It remains to be seen what the effects of this transition will be. The experience of other regions that have already switched to the new system is not yet as extensive or revealing,” Lechner added.

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