If you start living and working in the Netherlands, you will also have to contribute to the Dutch tax system. There are several national taxes, of which the income tax is the most important. The Dutch Tax Authority (Belastingdienst) is responsible for collecting these national taxes.
If you have privileged status different rules with apply regarding taxation. Please consult your HR department or the protocol guide of MFA.
Everyone in the Netherlands is taxed on their income, wealth and assets (inkomstenbelasting). The amount of tax you pay depends on your level of income. For most people, the income tax is the most important tax to pay. Taxes on wages are paid in advance by your employer. Your employer takes out the taxes before transferring your salary to you, and then transfers your share of taxes to the Dutch Tax Office (Belastingdienst). This will be clearly listed on your monthly salary statement issued by your employer.
Annual income tax returns
In the Netherlands, the fiscal year runs from 1 January to 31 December. It is possible to request a further extension, but this must occur before the deadline. You can request an extension by contacting the Belastingdienst directly or by having your accountant make the request.
You are obliged to file your Netherlands tax return if:
- A tax return has been issued to you by the Dutch tax office
- You have had more than one job/employer during the tax year
- You had a private company or freelance income during the tax year
- You already claimed mortgage relief for the relevant tax year
- Your world-wide assets exceed the threshold
- You know you need to pay income taks
However, you do not need to file an income tax return if:
- You are not a tax resident in the Netherlands
- You only had one job/employer during the tax year
If you own a company which is registered as a one-man company (eenmanszaak) with the chambers of commerce, you are required to file a profit income tax return.
Filing your income taxes
You can file your taxes digitally via the Belastingdienst website. For this program - which is only available in Dutch - you will need to apply for a DigiD first. The other option is to enlist the help of a tax accountant or adviser. Please keep in mind that if you do not already have a DigiD account, it can take a few weeks to arrange this, so do not leave it until the last minute.
- If you have questions about your taxes, contact the Belastingdienst (Dutch tax office) at 0800 0543 or www.belastingdienst.nl. Please note that representatives can generally only help you in Dutch.
- Internationals who purchase a house in the Netherlands with the intention of making this their home, can deduct the mortgage costs from their Dutch taxable income.
- As an international you can make use of the ‘30% ruling’. This tax reimbursement scheme is designed to compensate the expenses you have as a foreign employee, due to temporary residence in the Netherlands (extraterritorial costs). Read more here in our section on the 30% ruling.
Savings outside of the Netherlands
Do you have property outside the Netherlands? Or do you live outside the Netherlands and have property outside the Netherlands? This has consequences for the income tax you have to pay. The Belastingdienst site provides more info on this for you:
- You have savings outside of NL.
The European Savings Directive came into effect on 1 July 2005. The aim of this Directive is to enable effective taxation of interest on savings deposits in the EU Member States.
- Giving interest information
Financial institutions in the EU, the EU dependent or associated areas and a number of third countries are obliged as per 1 July 2005 to execute the European Savings Tax Directive.
- Withholding tax
The financial institutions in a number of countries do not exchange information yet during a transition period, but withhold tax on interests paid instead.
- No withholding tax
You can avoid a financial institution outside the Netherlands withholding tax. There are three options.
If you live in the Netherlands and own a vehicle (car, van, motorcycle, trailer or lorry), you will have to pay motor vehicle tax (MRB, Motorrijtuigenbelasting). You will automatically receive an assessment from the Dutch Tax and Customs Administration. The amount of motor vehicle tax you pay depends on which vehicle you own and several other factors such as:
- the province the owner of the vehicle lives
You can find out the tax rate for all vehicle types by using the motor vehicle tax rate tool (in Dutch). That tool also allows you to see which types of fuel-efficient cars are exempt from paying vehicle tax.