Being an exile in the Netherlands can make this process even more overpowering than usual, but the money you could receive back makes the time and feat worth it ( trust us ) .
Let ’ s get an adept look at how to do your tax return in the Netherlands as an external, shall we ? 🧐
Before we start: you need to know what you ’ re doing. In 2022 you will be filing for your 2021 tax returns. This means that you are filing for the earnings that you made concluding year. In 2023, you will file for your 2022 earnings — and so on. 😉
When is the Dutch income tax season?
A mysterious blasphemous envelope might have slipped through your mailbox recently, inviting you to the charming wizarding school of…oh no deplorable, inviting you to file for tax returns .
however, if you don ’ metric ton receive one of these blue invitations, it doesn ’ t mean you ’ re not eligible to file for tax returns in the Netherlands .
In this case, speaking to a tax adviser is a good means to know if you are eligible to get any money back .
We teamed up with technical tax consultants at HBK to bring you the most up-to-date advice on tax returns. Our friends Daniel and Saskia specify in exile tax matters, and “ deliver what gets you ahead, ” says Daniel. “ We turn complex matters into simpleton solutions, with a personal touch. ”
Why do you need to file a tax return?
adenine much as we all dread this procedure, it ’ s an important one to complete as it can save you heaps of money when done .
You can besides be fined if you don ’ triiodothyronine take, and your toeslagen site can besides be affected. In short : charge, or lose a bunch of cash .
The deadline: submit by April 30, 2022
You will need to have submitted your tax return forms by April 30 at the latest — set a reminder, put it in your calendar, tattoo this date into your brain if you have to .
Some Dutchies will be stressing to have this done by April 1, as then they can potentially get a refund by July 1. But this is not necessary and is merely for those wanting to get money back equally soon as possible .
Good to know: If you miss the April 30 deadline, you can apply for an annex ( a tax adviser can help you with this ) .
|January 1||Beginning of tax year for individuals|
|April 1||electric potential early refund deadline|
|April 30||general tax reappearance deadline|
|April 1 – June 1||Apply for extension|
|July 1||experience likely early tax refund|
|September 1||run deadline for individuals who apply for extension|
|April 30 (the following year)||Latest date tax recurrence deadline can be extended by a tax adviser|
Personal tax deductions in the Netherlands
Before we get stuck in, let ’ s depart with the beneficial news program ! There ’ second a whole image of personal deductible items that are valid for your 2021 tax return to be filed in 2022 .
What are personal deductible items you may ask ? Put plainly, your personal situation may mean that you are entitled to claim money bet on on the tax you are due to pay .
How to file taxes in the Netherlands. Time to get stuck in the paper-work! Image: Unsplash The items that entitle you to tax deductions change each class, however, so it might be wise to consult a tax adviser if you ’ re not wholly certain about how and if you can deduct sealed costs .
Let ’ s run through some situations that may entitle you to personal tax deductions in the Netherlands this tax season. 💪
Tax deductions when you own a house in the Netherlands
First of wholly, we ’ ll start with the cover girl Dutch son of hypotheekrenteaftrek, translating to “ mortgage interest deduction. ” Under this, you can declare the concern you pay on your mortgage and subtract it from the total of your taxable income, on which you have to pay taxes .
certain costs that you paid when buying a house are besides deductible from taxes. These costs include evaluation costs, the fee for the NHG ( National Mortgage Guarantee ) and some of the notary fees relating to the mortgage loanword .
If you ’ re confused about what tax deductions you are entitled to as a homeowner there ’ s no need to pull your hair out. A good tax accountant can take the wheel for you .
Tax deductions for charitable donations in the Netherlands
Fun fact : in the Netherlands, you can besides claim tax deductions for certain charitable donations that you made throughout the year !
The charities must be recognised as an “ initiation or organization for public benefit ” and have a non-profit motif. Give a fiddling, get a short in truth applies here !
Other personal tax deduction possibilities
Daniel tells us that there are many situations that can save you money on your taxes. “ other examples of deductions are particular aesculapian expenses, ” he says. “ angstrom well as this, you may besides be entitled to a tax tax write-off if you are paying collaborator alimony. ”
Averaging tax in the Netherlands
Ok, now that we ’ ve talked about tax benefits, it ’ second time to discuss averaging. 🤓
What is averaging?
Are you a freelancer ? Is your sour seasonal or commissions-based ? possibly you ’ ve had different jobs in the by three years, or went through a patch of unemployment ?
READ MORE | How to pay your taxes as a self-employed person in the Netherlands
If so, you ’ ve had what they call a fluctuate income. In this case, your income tax over the past three years can be averaged out, and you can get significant refunds .
Note: As of 2023, the Netherlands will get rid of averaging. This means that you will be taxed based on your annually income alone from 2023 onwards .
“ You can request averaging by filling out a shape and sending it to the dutch tax authorities, ” explains Daniel. “ however, this imprint is alone available in Dutch, which makes the action more difficult for expats. ”
How much are we talking about and how can you get it?
The deviation in tax when averaging needs to exceed €545 since you will only get the excess refunded. But bear in mind you ’ ll need to meet some other conditions excessively in order to apply for an averaging refund :
- You have been a resident of the Netherlands for all three years which you wish you average .
- You need to have a final examination Tax appraisal for each of these three years, where you no longer can file an objection if you filed a tax render .
- You ’ ll necessitate to fill out a separate request within 36 months after the date of the Final Tax Assessments .
- You can not include a year for which you have already filed an averaging request .
Have an advisor help you
If you ’ re feeling a fiddling overwhelm, do yourself a favor and get some help oneself from a tax adviser .
They can help you check whether you are entitled to a refund over the three years combined and fill out the form, so you can get that excess of €545 added to your bank account. score !
Filing a tax return as an international in the Netherlands
Life as an international can sometimes be overwhelm and throwing tax temper into that mix can be one heck of a confuse cocktail.
But yield with us, there are actually some advantages to being a bamboozled exile when it comes to taxes in the Netherlands .
Dutch tax season looks like this, but less pen and more blue envelopes. Image: Unsplash
The 30% ruling — for incoming employees
Have you been hired to come and work in the Netherlands ? Or have you been transferred to the Netherlands as depart of your work ?
Under the 30 % rule, eligible incoming employees are granted a 30 % fiscal break in order to cover their costs of moving to the Netherlands .
What does this entail ? You may be entitled to keeping 30 % of your wage, including reimbursement for moving costs — tax-exempt !
however, it ’ mho significant to bear in mind that there are a number of stern conditions that have to be met in order to be eligible for the 30 % rule .
additionally, how farseeing this valuation reserve lasts depends on when you applied for the predominate. ultimately, you need to apply for ( and be approved ) for the opinion by the government .
But we ’ rhenium not complaining — something is better than nothing after all !
Filing taxes in the Netherlands and another country: how to avoid double taxation
As is the case with many expats, you might have income coming from more than one nation, or assets in more than one state .
The hazard here is that you get tax twice, which, of naturally, you want to avoid .
READ MORE | Cross-border workers: the financial implications of working from home
unfortunately, every situation is different — so it ’ sulfur best to chat with a tax adviser about your unique frame-up to save you some dangerous cash .
The different tax forms in the Netherlands
just when you thought filing your taxes in the Netherlands was confusing adequate, you then find out that there are many different forms for different taxes/circumstances. The four independent income tax forms are :
- C Form – Foreign residents that are earning money in the Netherlands but living/working in a different nation
- P Form – Private individuals
- W Form – Freelancers and business owners that are making money
- M Form – For people who have migrated to or from the Netherlands
The infamous M-form: a guide for expats in the Netherlands
Let ’ s lecture about the M Form. The M stands for migration, meaning — you guessed it — you must fill it out when filing your tax rejoinder for the year you either migrate to, or leave, the Netherlands as a taxpayer. 🌎
In this site, you have normally spent part of the class populate abroad and separate of the year in the Netherlands, so the dutch tax agency needs to figure out fair how much tax you should pay !
normally, the dutch tax authorities will send you an invitation to file your tax returns. The deadline for this is normally July 1 .
Note: The M-Form is only for the year that you immigrate to/migrate from the Netherlands. once you have lived and worked in the Netherlands for an entire year as a tax-paying resident, you file for your tax returns using a P-Form .
When you migrate to the Netherlands, the form comes in two parts, however, it ’ s all compiled into one shape .
The inaugural separate concerns your position while you were outside of the Netherlands, and the next part concerns your site while in the Netherlands .
There are a number of complicated factors involved in filling out the M-form. first, it ’ mho 43 pages long, and entirely in Dutch ( because that makes sense ? )
however, there ’ s besides well newsworthiness ! As of 2022, this shape can be filled out on-line — yes, it was all done on paper up until nowadays .
It is powerfully recommended that you turn to a tax adviser when it comes to dealing with the freak that is the M-form .
The employees at HBK are more than glad to take this chartaceous weight off your shoulders and chances are they will make a discovery you didn ’ metric ton realize !
For model, Daniel tells us that individuals who are only employed in the Netherlands for a partially of the year are normally entitled to a tax refund .
“ This is a identical common position in M-forms, so it is decidedly worthwhile to investigate whether you are entitled to a tax refund if this situation applies to you ! ”
What has changed in 2022 for filing taxes in the Netherlands
A few changes were made for tax income in the Netherlands last year, which will affect how you file for tax refunds now ( 2022 ). here ’ s what you need to be aware of :
Last year to claim tax deductions for students
up until 2022, certain degrees in the Netherlands entitled you to a tax subtraction .
If your degree was deemed to be one that helps you, a taxpayer, to secure a better place in the tug market — then you could claim money back on necessity costs such as examination fees, certain software and any books/study materials that were necessary for your naturally .
It will be possible to claim a discount for department of education expenses in your 2021 Dutch income tax revert, but you better savour it, 2021 will be the last year. From the 2022 Dutch tax year ahead, this tax profit has been ditched .
Income tax will be slightly lower
In adept newsworthiness, income tax rates will drop slightly this year for those who fall within the first bracket — mean final salaries will be slenderly higher. Whoopee ! These are the dutch tax brackets for 2022 .
|Income||Tax rate (%)|
|Below €69 ,398||37.07%|
|Above €68 ,398||49.5%|
What is a tax consultant and do I need one as an expat in the Netherlands?
Get advice from the experts when completing your taxes in the Netherlands. Image: Unsplash
Personal advice and tailored approach
A tax adviser will advise you on your tax situation. They will make certain you are mindful of your obligations ampere well as any possibilities to lessen your tax burden .
If you like, they can besides deal with your boring administrative affairs for you, so you don ’ t have to fill out that M-form. 👀
But the most valuable thing a tax adviser can offer is proactive insight. They can let you know how to minimise your tax liability before you even ask, and they ’ ll quickly be able to provide you with in-depth cognition of your tax situation .
In a nutshell ? They may help you save money in areas you would not have seen yourself .
Connect with HBK
If you however feel overpower and ( intelligibly ) confused, don ’ deoxythymidine monophosphate worry. This is what tax advisors are for.
Read more: What Is a Debt Management Plan? – NerdWallet
Consultants such as HBK specialize in helping expats in the Netherlands with their tax. With their help, you can make the most of the tax temper and make your biography in the lowlands a little easier excessively .
Feeling a little less scared of that pesky blue envelope? Tell us your Dutch tax experiences in the comments below!