What Is Eigenwoningforfait (EWF) in the Netherlands? (2026)
What EWF is, why it exists, and how it affects your net cost of owning a home—especially alongside mortgage deduction.
Eigenwoningforfait (EWF) Explained
The Eigenwoningforfait (EWF) is a tax concept that often confuses expats and new buyers. It is essentially a "deemed income" tax on homeownership. The Dutch government views owning a home as a form of income, because you are avoiding the cost of rent.
Definition in Plain English
The tax authorities calculate a percentage of your home's official value (WOZ value) and add this amount to your taxable income in Box 1.
- Rate (2026): Approximately 0.35% for most homes (value between €75,000 and €1,330,000).
- Effect: It increases your taxable income, meaning you pay more income tax.
Where It Shows Up in Your Finances
You don't get a separate bill for EWF. Instead, it is settled during your annual income tax return.
Typically, it offsets a portion of your Mortgage Interest Deduction (HRA).
- Income: €60,000
- Plus EWF: +€1,500 (based on €430k home)
- Minus Interest: -€10,000
- Taxable Income: €51,500
Effectively, the EWF reduces the tax benefit you get from your mortgage interest.
How to Model It in Rent vs Buy (#ewf)
Our calculator includes EWF automatically in the "Net Monthly Costs" and "Tax" calculations.
- Impact: It makes buying slightly more expensive.
- Paid Off Home: Even if you have no mortgage (and thus no interest deduction), you generally still have the EWF addition (though the "Wet Hillen" used to cancel this out, it is being phased out over 30 years).
Common Misunderstandings
- "It's a property tax": No, OZB (Onroerendezaakbelasting) is the municipal property tax (bill from the equivalent). EWF is an income tax addition.
- "It's huge": Compared to other costs, it's modest, but it does reduce the efficiency of the mortgage deduction.
FAQ
How is EWF calculated?
It is a fixed percentage of your WOZ value. For most homes in 2026, the rate is roughly 0.35%. For very expensive homes (above ~€1.3m), the rate is higher (Villataks).
Do I pay EWF if I have no mortgage?
Yes. Although the "Wet Hillen" used to allow you to deduct an equal amount if you had no mortgage, this benefit is being reduced to zero over 30 years (starting 2019). So gradually, you will pay tax on the full EWF amount.