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A landlord inquired whether the net income reduction could be applied when renting out rooms via room rental agreements. The Directorate-General for Taxes (DGT) ruled that the reduction is applicable provided the rental meets the tenant's permanent housing needs.
Taxpayers renting out rooms may benefit from a 60% reduction in net income tax if they can demonstrate the rental serves as the tenant's permanent residence, rather than a seasonal arrangement.
The tax team reviews your specific situation.
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