Legislative changes in the 2020 housing market

Legislative changes in the 2020 housing market

What legislative changes will take place on January 1, 2020 regarding the housing market? We list the most important changes!

2 billion investment in the coming years
The government will invest two billion euros in the coming years to get the housing market moving. An amount of 1 billion has been made available for residential construction and a 1 billion discount on the landlord levy, stimulating residential construction, in order to achieve the target of 75,000 additional homes per year. Starters and middle incomes can take advantage of this financial boost. The cabinet will encourage municipalities and housing associations to realize faster and more affordable housing.

NHG limit to € 310,000 in 2020
From 1 January 2020, the NHG cost limit for homes without energy-saving facilities will increase from € 290,000 to € 310,000. The cost limit 6% is higher for homes where energy-saving facilities are made, namely € 328,600. If the appraised value is higher than the purchase price, the lowest amount is leading with regard to the cost limit.

Binding offer
The new cost limit may already apply to a home that will be purchased in 2019. The point is that the binding offer will be released in 2020. So you can already buy a home up to € 310,000, if the binding offer is only released in 2020.

Transfers also below the NHG limit
The NHG cost limit applies in 2020 to both purchases and transfers. Transferring a loan without NHG to a mortgage with NHG is no longer possible from 2020 if the home value is above the cost limit.

NHG premium reduced to 0.71 TP1 in 2020
A buyer pays a one-off NHG premium for a mortgage with NHG, the so-called bail commission. The consumer pays the bail commission via the lender to NHG as soon as the mortgage is taken out. The bail commission for a mortgage with a National Mortgage Guarantee ('NHG premium') will be lowered on January 1, 2020 from 0.9% to 0.7% on the amount of the mortgage.

This means that a maximum of € 2,170 in costs is charged for houses without energy-saving facilities and a maximum of € 2,300.20 for houses with energy-saving facilities. The aim is in principle to maintain this level in the coming years.

Mortgage deduction decreases faster
The mortgage interest deduction will decrease from 49% to 46% in 2020. Since 2017, the maximum tax rate at which mortgage interest can be deducted has decreased. The percentage is reduced from 52% to 37,05%. Previously, this rate decreased by 0.5% per year. As of 2020, it will be phased out by 3% per year. For 2020, this means that the maximum tax rate at which mortgage interest can be deducted will decrease from 49% to 46%. In the coming years, this rate will be further accelerated by 3% per year. From 2023, the rate of 37,05% will have been reached.

Hillen deduction drops to 93? %
The deductible item due to little or no home acquisition debt (Hillen deduction) decreases by 3? % per year. In 2020, the Hillen deduction is 93? %. The Hillen Wet entitles you to an additional deductible item if your notional rental value is higher than the deductible costs for the owner-occupied home. Last year, the government decided to abolish the Hillen deduction in 30 years, in steps of 3? % per year. As of January 1, 2048, the deduction will no longer apply.

Income partner counts for 80% in 2020
For two-income households, the income of the least-earning partner for 80% is included in determining the financing burden percentage in 2020. In 2019 this was still 70%.

Income tax to two-disc system in 2020
The cabinet is accelerating the transition to the two-disc system in income tax. The introduction would take place in 2021, but this will already happen in 2020.

WOZ value will increase in 2020
The average WOZ value of homes will increase by 8.0 to 10.0% next year. The WOZ value that will be received in 2020 reflects the market development between 1 January 2018 and 1 January 2019.

Notional rental value falls
In 2020, the notional rental value will be set at 0.6 % for homes with a WOZ value between € 75,000 and € 1,060,000 (in 2019 this will be 0.65 %).

Energy tax down in 2020
The energy tax will change on 1 January 2020. On average, households pay less tax.

HOA's with solar panels can be VAT freeget count
As of January 1, 2020, the Tax and Customs Administration has amended the so-called small business scheme (KOR). As a result, Owners' Associations (HOA's) that have solar panels can be exempted from their VAT obligations when participating in the new KOR as of 2020.

If a VvE supplies electricity for less than an amount of € 20,000 per year, the VvE can appeal to the new KOR. A VvE no longer has to file a VAT return.

HOA's should be careful when using the new KOR. If a VvE has deducted the VAT on the purchase, it may be that part of the previously deducted VAT has to be paid back to the tax authorities under the revision scheme. A VvE must therefore calculate whether it pays to participate in the new KOR.

In addition, the VvE can no longer deduct VAT on maintenance costs or other costs related to the solar panels when participating in the new KOR. Before the VvE decides to participate in the KOR, customization by a tax specialist / accountant is required.

Netting scheme continued
The netting scheme for solar panels will continue unchanged until 1 January 2023. As a result, it remains financially attractive for households and SMEs to invest in solar panels. The netting scheme means that the power that you generate with solar panels and feed back into the grid is deducted from your own energy consumption. Solar panel owners can set off netting for three years longer than was provided for in the Coalition Agreement. Until January 1, 2023, nothing changes for those who already have solar panels.

Source: NVM