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Moving to the Netherlands for work? Here’s everything you need to know about tax

Moving to the Netherlands for work is an exciting time for any expat, and serves as a great opportunity for many people, due to its high standard of living and booming economy. 

However, before you get started working over there, it’s important to be aware of the tax system in the country. 

Having at the very least a basic understanding of the Dutch tax system can help you not only plan your finances but also potentially save money!

With that in mind, europa.jobs have partnered with Taxback to ensure expats are fully covered from a tax perspective during their stay in the Netherlands. 

In this blog post, the Taxback team discusses everything an expat needs to know about the tax system in the Netherlands, including how much tax you can expect to pay, whether you are eligible to claim a tax refund, how to file your tax return, and more!

How much tax will I pay in the Netherlands?

The rate of tax that you will be required to pay during your stay in the Netherlands will depend on a variety of factors, including your income, residency status, and any tax credits or deductions you may be eligible for. 

Generally speaking, the Dutch tax system is progressive. This essentially means that the more you earn, the higher percentage of tax will be deducted from your income. Currently, the tax rates in the Netherlands are:

  • 9.42% for income up to €35,472
  • 37.07% for income between €35,473 and €69,398
  • 49.50% for income between €69,399 and over 

However, there are a number of tax credits and deductions available that may just be applicable to you! 

Can I claim a Dutch tax refund?

As an expat in the Netherlands, there are a few scenarios in which you may be eligible to get tax back! 

A lot of expats in the Netherlands are due tax back if they paid too much income tax on their earnings. This can happen for many reasons, such as an overpayment of tax or because you’ve left the country before the end of the tax year! 

To be able to claim a tax refund, you will first have to file a tax return with the Dutch tax authorities.

If you’re deemed a resident for taxes in the Netherlands, you may still be eligible for a tax refund if you’ve overpaid your taxes. This can also be done by filing a Dutch tax return. 

Keep in mind that the Dutch tax system is quite complex, especially if you are new to it – which is why it’s a good idea to seek the advice of a tax professional like Taxback if you’re unsure about whether or not you’re eligible for a refund!

How do I file my tax return?

If you’re a resident taxpayer in the Netherlands, you’re required to file a tax return each year. 

The tax year runs concurrently with the calendar year in the Netherlands, meaning that it runs from 1 January to 31 December.

The deadline for filing tax returns if you owe the Dutch tax authorities money is 1 May of the following year. 

The two options to file your tax return are to file online using the Dutch tax authorities’ website, or to seek the help of a tax professional like Taxback to file your return on your behalf!

When filing your tax return, information that needs to be provided includes income, deductions, and any tax credits or exemptions you may be eligible for.

Can I claim any relief on my Dutch health insurance?

If you’re deemed to be a resident taxpayer in the Netherlands, you will need to have health insurance. 

The cost of health insurance can be pretty high in the Netherlands, in comparison to other European countries. 

Fortunately, the Dutch tax authorities have recognised this and there are a variety of tax credits and deductions that can help offset the cost of health insurance.

Depending on your level of income, you may be eligible for a healthcare allowance, which is a monthly subsidy that helps cover the cost of health insurance. 

The amount of the healthcare allowance is based on how much you earn. 

You may be entitled to claim the health insurance allowance (Zorgtoeslag) to help cover part of your insurance costs. Taxback can check if you’re eligible and claim this allowance on your behalf!

Who can help me with my Dutch taxes? 

You can always choose to file your Dutch tax return by yourself with the Dutch tax authorities.

However, why not file with a tax expert like Taxback and ensure you are fully tax compliant while also receiving your MAXIMUM legal Dutch tax refund?!

The average tax refund a Taxback client gets is €910 – but you could be due even more than that if you have multiple reliefs available to claim.

Why not get started with Taxback and check out if you can claim a Dutch tax refund today?