Of the four largest cities in the Netherlands (Amsterdam, Rotterdam, The Hague, and Utrecht), The Hague has the lowest residential tax rates, and ranks as the third cheapest municipality in the entire country, according to a new report on local tax rates in the Netherlands.

The report, published annually by the University of Groningen's Centrum voor Onderzoek van de Economie van de Lagere Overheden (COELO), examines municipal taxes in the largest municipalities in the Netherlands.

According to COELO's ranking, of the 35 Dutch municipalities they studied only Alkmaar and Tilburg have lower residential tax rates than The Hague. Homeowners there pay 2 euros less per year on their municipal taxes (the sum total of property tax, waste tax and sewage charge).

Meanwhile, in 2013 a Haagse household will pay an average of 547 euros in municipal taxes. Families have to pay quite a bit more per year in the nearby municipalities of Zoetermeer (701 euros) and Delft (730 euros).

The municipal government in The Hague wants to keep taxes low to stimulate the local economy. As Debuty Mayor of Finance Boudewijn Revis puts it, "We want The Hague to be an attractive residential city. You shouldn’t stick residents with the bill. Let them take the money that they save and pump it back into the economy."

In keeping with this attitude, The Hague Municipal Executive recently reduced the property tax on houses by 10% in spite of major budget cuts. According to COELO's data, over the past year these taxes increased by an average of 2% in the municipalities they studied.

COELO's report can be found here (in Dutch).

Source: Municipality of The Hague