Bruto jaarinkomen (Gross annual income)

What is bruto jaarinkomen (gross annual income)

The gross annual income (or gross annual salary) is the income before deductions. Read what is included in the gross annual salary. We also provide a handy rule of thumb to calculate this.

Calculate gross annual income

The gross annual income is the income per year before deductions, such as wage tax, have been made. The gross annual income includes:

  • Holiday pay 
  • Thirteenth month 
  • Year-end bonus 
  • Profit distribution 
  • Social benefit 
  • Allowances (irregular work and overtime) 
  • Expenses 
  • VEB allowance

Rule of thumb gross annual income

There is a handy rule of thumb for calculating the gross annual salary, for both individuals and entrepreneurs. Please note: this gives an indication of the gross annual income. For a mortgage offer, the test income must be calculated exactly.

  • Private individuals: gross monthly salary x 12 x 108% (holiday allowance) + thirteenth month (other fixed allowances such as shift allowance may be added to this).
  • Entrepreneurs: The average net profit of the past three years taken. Take the turnover, before tax, from which the business costs have been deducted.

Gross annual salary and maximum mortgage

When taking out a mortgage, the gross annual income first determines how much can be borrowed. The higher the income, the more you can borrow. By calculating the maximum mortgage based on the gross annual income, you prevent the monthly costs from becoming too high.

Every year, the government determines how much of the gross income you can spend on the mortgage. This is called the housing ratio. The NIBUD advises annually and largely determines the housing ratio. This includes looking at the development of gross annual income in the Netherlands.

Find your maximum mortgage amount base on your gross annual income here!

Mortgage terms
Eigenwoningforfait (Notional rental value)
"Eigenwoningforfait" is a tax on the theoretical income that a homeowner could earn by renting out their home, even if they do not actually rent it out. Erfpacht (Ground lease)
Often houses in the Netherlands are not on private land, but on leasehold land. This leasehold land is then rented from the landowner (often the municipality). Hypotheekakte (mortgage deed)
The mortgage deed is the official contract for a mortgage. The mortgage deed contains all agreements with the bank that relate to the mortgage. Hypotheeksom (Mortgage sum)
he mortgage sum is the total amount that is borrowed from a lender. Koopakte (Purchase deed)
The written purchase agreement between the buyer and seller of a house. Other words for koopakte are koopcontract or koopovereenkomst (purchase contract or purchase agreement). Maandlast netto (Monthly charge net)
The net monthly payment is the amount that is paid monthly for the mortgage after tax settlement. Therefore, the tax is taken into account. National Mortgage Guarantee (NHG)
 Notariskosten (Notary fees)
When you buy a house, a visit to the notary is unavoidable. The deeds required for the purchase of a home are drawn up by a notary. Taxatiekosten (Appraisal costs)
The appraisal costs are one of the additional costs when taking out a mortgage. They are the costs for the valuation of a house by an independent appraiser. WOZ-waarde
WOZ stands for Valuation of Real Estate (Waardering Onroerende Zaken). The WOZ Act ensures that all governments use the same valuation for a home when levying taxes.