You can find a rough guide to income tax rates in relation to the Netherlands in our guide. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double taxation treaties.
Income Tax Base For Residents and Non-Residents of Netherlands
- Residents of Netherlands are subject to personal income tax on their total income, from all sources worldwide.
- Non-residents of Netherlands are subject to personal income tax on Netherlands sourced income only.
Individuals will be regarded as tax residents if
- Their main home or center of economic interests is in Netherlands.
- They are registered within the civil registry for the vast majority of the tax year.
Allowable Deductions and Tax Credits
Employer reimbursement of (international) school fees.
Tax deductions: interest allowance for mortgage interest related to real property in the Netherlands.
Tax exemptions: an employee subject to the 30% tax ruling (if a resident of the Netherlands) can opt for partial non-resident status, which implies that income (assets/savings) may be tax-exempt in the Netherlands.
Special Expatriate Tax Regime
An employee assigned to the Netherlands, who has specific expertise that is not available or that is scarce in the Dutch labour market, is eligible to apply for a tax-exempt allowance of 30% of their salary. A request has to be made to apply the 30% ruling, and this must be completed within four months of employment starting. Once approved by the authorities, the allowance applies for a ten year maximum term, paired with an interim test in which to determine if the expatriate continues to satisfy the conditions and qualify for the 30% ruling.
Employees who do not qualify for the 30% ruling still may receive a tax-free reimbursement, of actual extra-territorial expenses.
Capital Tax Rate
- Municipal authorities levy personal property tax on all immovable property based on the council-rated value of property. The tax base for real estate tax is the fair market value as determined by the municipal tax authorities. The council-rated value of an immovable property applies to certain elements of the personal income tax.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed See the list of the conventions signed, on the Dutch Finances Ministry website.
- Withholding TaxesDividends: Withholding taxes are: 15% for dividends. There are no tax rates on interest and royalties.
- Bilateral Agreement The United Kingdom and Belgium are bound by a double taxation treaty.
Taxpayers who derive taxable income in excess of certain limits must file an annual tax return between the 1st of May and the 31st of July of the year following the tax year (by 31 October if filing electronically).