Everything You Need to Know About Taxes in the Netherlands

Let’s face it, moving to a new country can be challenging, especially when you are trying to understand and navigate a new tax system.

After all, understanding your tax obligations is the last thing you want to do when you have just landed in a new country!

However, failing to understand taxes in the Netherlands could cost you money that is rightfully yours!

That’s why we have partnered with Taxback to help you better understand the Dutch tax system and to help you claim your maximum tax refund.

Understanding the tax system in the Netherlands

If you earn money in the Netherlands, you must pay tax.

However, the tax rate that you pay depends on the amount and the type of income that you receive.

There are three types of taxable income:

Taxable income from your employment and home ownership
Taxable income from substantial interest
Taxable income from savings and investments

The Dutch tax year runs from 1 January to 31 December, and you can go back five tax years to claim your tax refund.

Am I a resident or non-resident in the Netherlands for tax purposes?

You will be considered a resident for tax purposes if you live at a registered address in the Netherlands for the whole calendar year and you are in employment in the Netherlands.

You will be considered a qualifying non-resident taxpayer in the Netherlands if you live in another country but pay tax on at least 90% of your income in the Netherlands and live in an EU country, Norway, Switzerland, Saba (a municipality of the Netherlands), Sint Eustatius, Liechtenstein, or Iceland.

Qualifying non-resident taxpayers receive the same tax benefits in the Netherlands as resident taxpayers.

What is the 30% tax-filing rule?

This refers to a tax exemption that migrants who relocate to the Netherlands may be able to claim. It aims to help with the costs associated with moving to the Netherlands.

Essentially, it allows migrants to receive a tax-free allowance of up to 30% of their salary.

There are specific criteria that you must meet in order to be eligible for the 30% ruling, such as:

Your employer is registered with the Dutch tax office and pays Dutch payroll tax
You have been recruited from abroad or transferred for work from another country
You possess skills that are considered scarce as an employee

Am I due a Dutch tax refund?

There are many reasons why you could be due tax back from the Netherlands.

Here are some scenarios where you might be due a tax refund:

You worked for part of the tax year
You changed jobs during the year
You had more than one job
You availed of the 30% ruling
You had a spouse and children accompany you to the Netherlands

Whether you are required to file a tax return or not, we advise you to do so, as otherwise, you could be leaving your hard-earned money behind with the tax authorities.

After all, Taxback’s average Dutch tax refund is a massive €910!

Complete the short application form to get started.

How can I claim my tax refund?

To claim your tax refund, you will need to file a tax return.

When doing so, it is important to determine your tax residency status to ensure you file a correct tax return.

If you lived in the Netherlands for the entire tax year and have a registered Dutch address, you are usually considered a resident taxpayer.

However, if you are registered as living at a non-Dutch address and earn income from the Netherlands that is taxable in the Netherlands, you will be seen as a non-resident for tax purposes.

When you apply with Taxback, they will help you determine your tax residency status and ensure you file a correct tax return.

In order to file your Dutch tax return with our partners at Taxback, you will need:

Your Jaaropgaaf or Statement of Earnings
Your completed tax pack
A copy of your ID/Passport

Why apply with Taxback?

Taxback takes the time and stress out of filing your tax return by doing it for you!

When you file with Taxback, you will remain tax compliant with the Dutch tax authorities and claim your maximum Dutch refund!

Expat Republic have partnered with Taxback to help you claim your maximum Dutch tax refund easily online!

To get started, simply complete Taxback’s short application form here.

Taxback’s team of tax experts will take it from there, handling all the tricky tax paperwork to ensure you claim every tax benefit you’re entitled to.

Plus, Taxback will transfer your maximum tax refund directly into your bank account, no matter where you are in the world!