Betterment levy

What is the betterment levy?

Is your municipality improving the area where your business is located? For example, by installing a sewerage system, or building a bicycle path or shopping centre? The municipality may decide you have to pay a betterment levy (baatbelasting).

A betterment levy may only be imposed if there is an advantage for you. Your business must benefit from the redevelopment.

How much is the betterment levy?

Before a municipality installs a facility, it decides which part of the costs the owners of properties in the area must pay. The amount of tax they must pay depends on how much they benefit from the new facility. You can find information on the betterment levy in the tax regulation of your municipality (in Dutch).

How do you pay the betterment levy?

If you have to pay a betterment levy, the municipal authority will send you a tax assessment notice. This notice states how you can pay. You can ask the municipality whether you can pay the tax in instalments.

File an objection against the betterment levy

Do you disagree with the tax assessment? You can file an objection against the betterment levy to your municipal authority (in Dutch). Make sure to object within 6 weeks of the date on the tax assessment. The tax assessment contains more information on how to object.