Navigating the Dutch tax system as a nonresident can seem daunting, but anybody who receives income from sources in the country must present a tax declaration. This latest Remitly taxation guide provides a comprehensive overview of how expats can manage their tax obligations in the Netherlands.
Who needs to file taxes as a nonresident in the Netherlands?
Any nonresident who earns income from sources registered in the Netherlands must comply with Dutch tax laws. You must therefore file a tax return if any of the following apply to you:
- Employment income: You work for a Dutch employer.
- Self-employment income: You provide services or conduct business in the Netherlands.
- Real estate income: You earn rental income or capital gains from Dutch real estate assets.
- Investment income: You hold shares in Dutch companies or earn interest from other sources in the country.
- Substantial interest: You have a significant shareholding (typically more than 5%) in a Dutch company.
What do you need to file your Dutch tax return as a nonresident in the Netherlands?
These are the documents you will need if you’re filing a nonresident Dutch income tax return:
- Passport or ID
Proof of identity for tax purposes. - BSN (Citizen Service Number)
The personal number you use for any interactions with the Dutch authorities. - DigID
Really important—this allows you to access the Dutch government’s online services and file your tax return easily from anywhere in the world. - Income statements
Proof of any income from Dutch sources, including employment income, business earnings, and investment income. - Bank account details
Required for receiving any applicable tax refunds. - Expense receipts
Evidence of any deductible items such as business expenses, healthcare costs, or home ownership expenses. - Tax return forms
The one you need to complete depends on your situation:- C-Form: If you lived outside the Netherlands for the entire year but received personal income from Dutch sources.
- M-Form: If you were resident in the Netherlands for some but not all of the calendar year.
- Double taxation certificates
To make sure you aren’t being taxed twice on the same income.
How to file taxes as a nonresident in the Netherlands
We’ll assume you already have a BSN number, a personal ID a bit like the USA’s social security number. Everyone who has spent time living and working in the Netherlands receives one at some stage.
If you don’t have one, you can read about how to apply for one as a nonresident.
Here’s the step-by-step process for presenting your taxes:
- Register for a DigID: Online is by far the easiest, especially as a nonresident. Even if you prefer to post the form eventually, you must have a DigID to get access to it.
- Choose the correct form:
- C-Form: For nonresidents with Dutch income. The C-Form requires you to fill in certain categories of Dutch income sources.
- M-Form: Applicable to individuals who moved to or away from the Netherlands during the tax year.
- Fill out your tax return:
- Online: You can complete the whole process using the Belastingdienst website, the most straightforward method for nonresidents.
- Paper: Alternatively, you can download and fill out the appropriate form.
- Submit your tax return: Use the Belastingdienst website to submit your forms electronically, or you can post a paper version to the Dutch tax office if you prefer.
- Pay any taxes due: Pay what you owe to avoid any fines or surcharges. We make it easy to send money to the Netherlands from outside if you need to!
Key tax deadlines in the Netherlands
Just like in much of Europe, the Netherlands’ tax year runs parallel to the calendar year. This makes it easier to remember the key dates for filing your tax declarations.
- Annual tax return deadline: Nonresidents must typically file their tax return by May 1 of the following tax year. For example, your 2024 tax return should be presented before May 1, 2025.
- Extended deadline: If you opt to contract the services of a tax advisor, you’ll get an extra few months. File the taxes of the previous year up until September 1.
- Prepayments: Self-employed individuals and anyone with a significant non-wage income may have to make quarterly tax prepayments. These are due one month after the end of each quarter: January 31, April 30, July 31, and October 31.
Penalties
The Dutch tax authorities are initially quite understanding in this regard. In fact, you will even receive a letter reminding you to file your taxes if you miss your deadline.
They will follow this with a formal notice, known as the “10-day note.” Your completed return must be received within 10 working days of receiving it and providing you comply, you’ll still avoid any fines.
However, after this deadline, you’ll be issued with a €385 penalty. If you miss the deadlines repeatedly, the fine could reach anywhere up to €5,514.
What are the tax rates and deductions for nonresidents in the Netherlands?
Tax Rates
Dutch income tax is split into three categories, called “boxes,” depending on the source. Each box has different applicable tax rates:
- Box 1, Income from employment: Wages in the Netherlands are taxed progressively up to a maximum of 49.50%.
- Box 2, Substantial holdings: Up to €67,000 income from shareholdings will incur a tax rate of 24.5% in 2024. Anything above that and it’s 33%.
- Box 3, Assets: Tax on things like savings and second homes depends on the level of assets. There is an annual exemption of up to €57,000 in 2024.
Deductions and tax credits
Depending on your individual tax situation, as a nonresident you may also be able to deduct the following elements:
- Mortgage interest: Deductible if you own property in the Netherlands.
- Healthcare costs: Expenses for some medical treatments and insurance.
- Some business expenses: Applicable for self-employed individuals and entrepreneurs.
- Charitable donations: You can deduct donations to approved organizations.
- Double taxation relief: Provided according to tax treaties.
Common mistakes to avoid when filing taxes as a nonresident in the Netherlands
Filing your tax return as a nonresident in the Netherlands can be complex. Here are some tips to avoid some of the common pitfalls.
- Use the correct tax form: make sure you fill out the correct form (C-Form, M-Form, P-Form) for your situation.
- Don’t miss the deadlines. Always file on time to avoid penalties.
- Avoid inaccurate reporting. Make sure all of your sources of taxable income are correctly reported.
- Seek professional advice: a tax advisor can help navigate complex situations. They will make sure you avoid inaccuracies and can often help you save paying unnecessary tax.
- Take advantage of double taxation agreements: be aware of tax treaties to avoid being taxed twice on the same income.
Where to get help filing taxes as a nonresident in the Netherlands
- Tax consultants: professional advisors simplify filing and ensure compliance.
- Belastingdienst: the Dutch tax office offers extensive resources and support on its Belastingdienst website.
- Online tax services: there are various platforms offering different tax return preparation tools.
Finally, if you’re filing taxes from a country of residence outside the Netherlands, the official Dutch websites are all available in English.
FAQs
Who needs to file taxes as a nonresident in the Netherlands?
Nonresident taxpayers must file if they earn income from Dutch sources, such as employment, business activities, or investments.
What documents are needed to file taxes as a nonresident in the Netherlands?
Required documents include tax forms, proof of income, bank account details, and other relevant Dutch tax documentation.
How do I file taxes online as a nonresident in the Netherlands?
You can file your tax return online using the Belastingdienst website or by following other approved Dutch tax administration procedures.
What is the deadline for filing taxes as a nonresident in the Netherlands?
The tax filing deadline is typically May 1.
What tax rates and deductions apply to nonresidents in the Netherlands?
As is the case for a resident of the Netherlands, nonresident tax rates vary across Box 1, Box 2, and Box 3. Eligible tax deductions include mortgage interest, healthcare costs, and business expenses.
What are common mistakes to avoid when filing taxes as a nonresident?
Avoid common tax filing mistakes like using the wrong form, missing deadlines, inaccurate income reporting, and ignoring tax treaties. Professional advice can help prevent these issues.
Where can I get help with filing my taxes as a nonresident in the Netherlands?
Assistance is available from the Belastingdienst website, tax consultants and other online tax services.
Do I have to report income I earned in other countries?
Yes. Non-residents only pay taxes on Dutch-source income but you must report your worldwide income to determine the applicable tax rate.
Am I eligible for the “30% ruling?”
The special, partial nonresident Dutch tax status that allowed tax-free income for foreign workers will be abolished from January 1, 2025.
Can I file my Dutch taxes in English?
Most of the tax forms and online Belastingdienst platform are available in Dutch only. Although there is no official system for filing taxes directly in English, there are lots of English resources available online and some tax advisors even provide English versions of the forms for nonresident tax payers.