Last updated: Feb, 2025 by Ernst (disclaimer)

Welcome to the Netherlands, the country of cheese, windmills and yearly income tax returns. This guide aims to explain in English the complexities of the Dutch tax system for you to help be able to submit your personal income tax return.

Key points to remember

• Tax year: The Dutch tax year aligns with the calendar year, starting on January 1st and ending on December 31st.
• Filing deadline: Typically, you must file your tax return 2024 before 1st of May 2025. Extensions are possible, but must be requested.
• Tax residency status: Your tax obligations depend significantly on your residency status. Residents of the Netherlands are taxed on their worldwide income, while non-residents are taxed only on income sourced within the country.
• 30% ruling: Some expats may qualify for the 30% ruling, a tax advantage for highly skilled migrants moving to the Netherlands for work, allowing 30% of their salary to be tax-free. If you have a tax partner who does not qualify for the 30% ruling, the tax-free allowance will only apply to your income. Additionally, for box 3 assets, the 30% ruling does not apply to your partner’s box 2 and box 3 assets, and these assets will be taxed according to the standard Dutch tax regulations, unless the assets are divided and allocated to the partner who has the 30% ruling.
• Digital filing: Most taxpayers in the Netherlands file their returns electronically via the Belastingdienst (Dutch Tax and Customs Administration) website. You'll need a DigiD (digital identification) to access the service. Filing can be done in English.
• Pre-filled forms: The tax authority pre-fills many parts of your tax return with information already available to them, such as your Dutch salary, bank accounts, and owner-occupied home mortgage interest.
  • Review this information carefully for accuracy. It is important to check it carefully because any mistakes are your responsibility, not of the Dutch Tax Authorities.
• Deductions: Be aware of possible deductions, such as mortgage interest (for homeowners), healthcare expenses, and charitable donations, which can reduce your taxable income.
• Timely payment: Please pay on time, as you will have to pay tax interest on your tax debt if you have not paid before the end of the payment period.

This guide is a starting point to help you understand how to file your personal income tax return in the Netherlands. Welcome to the Netherlands, and here's to managing your taxes efficiently and effectively!

Trust and similar legal structures

• The concept of "Afgescheiden Particulier Vermogen" (“APV”) in Dutch tax law refers to specific legal structures like trusts, (Dutch) foundations, and similar entities.
• APV’s and trusts are often used to manage and protect assets for private interests, typically for the benefit of the family.
• Even though assets (like cash, bank accounts, real estate, and other investments) are owned by an APV, for tax purposes, they are still considered to belong to the person who contributed them.
• Because of the transparency you must report these assets and any income they generate on your Dutch income tax return, just as if the APV didn't exist.
• If the contributor of the assets has passes away, the responsibility to report the income, deductions, and assets shifts to their heirs.
• There's an exception to the rule of declaring APV income in the Netherlands. If the income from the APV is already taxed at a rate of at least 10% in another country, you may not have to declare this income in the Netherlands. This provision helps avoid double taxation of the same income.