Income Tax and Benefits
Some Dutch employers will deduct income tax and other posts from your monthly income. However, in many cases (see below) you can also fill in a tax return to see whether you are entitled to any refunds.
Please note some of this information changes yearly and you should always double-check with the Dutch Tax Authority for what the current regulations are.
We recommend you file a Dutch income tax return:
- if you are a non-resident taxpayer with working days abroad
- if you are a home owner who pays mortgage interest
- if you have a partner who has a low income
- if you have children under 12 years old
- if you receive any allowances for the Dutch government (see below)
- also, if you have capital in excess of €50,000 (either in the bank or in shares, as real-estate etc.) you may need to pay property tax (as of 2023)
Please note that if you only worked in the Netherlands for part of the year (because you started or ended your employment some time during the year), you may well be entitled to a tax refund.
If you received a physical letter or a digital letter in mijn.overheid.nl requesting you to file a tax return, or if you owe more than €49 in income taxes you are obliged to do so.
When do you file your tax return?
In the Netherlands, you can usually file a tax return between 1st March and 1st May, and if necessary you can request an extension till 1st September.
How do you submit your tax return?
If you started working in the Netherlands halfway through the year or if you expect a refund from the Tax Authority, you can ask them for an M-form (in case of immigration/emigration) or C-form (when living outside the NL but still having ties) by phoning the Foreign Department (Afdeling Buitenland +31-55-538585). If you do this privately, you can only do this on paper, but intermediates have special software to do this electronically. As it is such a complicated process, we suggest you use an intermediate or tax advisor to file the tax return for you.
If you haven’t done so already, please check whether you’re entitled to any benefits/allowances (toeslagen in Dutch) the Dutch government provides through the Tax Authority, e.g.
- rental allowance
- care allowance
- childcare allowance
- child-related budget.
Eligibility will depend on your income and personal circumstances. More information on Dutch Benefits can be found on the Tax Authority's website. There is also a Tax Information Line where you can ask questions about taxes and benefits.
Intermediaries and Advisors
If your tax situation is complicated, either because you only worked in the Netherlands part of the year or because you received Dutch tax allowances, we recommend you consult a tax advisor. If you let them handle your taxes, you can be sure that you don’t miss out on any opportunities.
The 30% Tax Facility
The 30% rule may apply if you:
- move to the Netherlands from abroad
- go abroad for a longer period of time
The 30% rule is an allowance for extraterritorial expenses: the extra costs an employee incurs when coming to work in the Netherlands from abroad. For example, travel and relocation costs may be incurred or living expenses may be more expensive than in the original country.
This tax benefit can sometimes also be applied when you are already working in the Netherlands but are posted abroad for a longer period.
You can read more about the 30% tax ruling on the website of the Dutch Tax Authorities