🇳🇱 Valuing your Indian property from Netherlands

Box 3 counts the flat back home

The Dutch system taxes wealth held in Box 3 on the basis of worldwide assets, and foreign real estate belongs in it. The value of the Indian property, less any mortgage secured on it, is declared annually rather than only when you sell.

That makes this an annual requirement rather than a one off, and it is why Dutch residents often need a current valuation refreshed periodically rather than a single historic one.

Relief, and why you still declare

The double taxation agreement between India and the Netherlands generally allocates taxing rights over immovable property to the country where it sits, and the Dutch system provides relief accordingly. Relief is not the same as exemption from disclosure. The asset is still declared and still needs a defensible figure.

Inheritance and gift

Dutch inheritance and gift tax can reach foreign assets depending on the residence of the parties. Where it does, the relevant figure is the value at the date of death or gift, converted to euro at the rate applying then. That is a retrospective valuation and a different number from the Indian cost base.

Selling from the Netherlands

Indian tax is deducted at source on the sale value unless a lower deduction certificate is obtained in advance, and proceeds repatriate through your non resident ordinary account under the annual limit with a chartered accountant's certification.

Format for your adviser

Reports issue in rupees with a euro conversion stating the rate, its source and the effective date. Tell us which date your belastingadviseur needs before we begin.