Claiming your tax refund in the Netherlands
Foreign employees living and working in the Netherlands are required to pay tax on their income. That’s hardly surprising, but what you may not know is that thousands of these expats are entitled to claim a tax refund at the end of each year, as Rory Lynskey from Taxback will explain.
If you are an overseas worker living and earning income in the Netherlands, it’s very important to have a solid understanding of the local tax rules and requirements, so you can claim the money that you are owed.
With that in mind, this article will answer some frequently asked questions about Dutch tax for expats!
Are you considered a non-resident for tax purposes?
Your tax residency status matters as this determines the type of tax you will pay while working in the Netherlands.
A non-resident is someone who hasn't registered an address within the country. If you have registered or deregistered your Dutch address during the tax year, you will be considered a migrant. If you had registered an address during the entire tax year, you will be considered a resident for tax purposes.
What types of tax will you pay in the Netherlands?
Any income that you receive from Dutch sources, such as employment, self-employment, rental income, and capital gains will be subjected to taxation from the Dutch tax authorities (Belastingdienst).
How much tax will you pay in the Netherlands?
This will depend on whether you are deemed a non-resident or resident for tax purposes. The tax rate for non-residents is generally higher than that of residents. The rate of tax that you pay will vary depending on the type of income you receive, but can range from 9,42% to 49,50%.
Do you have to file a Dutch tax return?
If you earned income from Dutch sources, you may be required to file a tax return. If you want to claim a Dutch tax refund, you will also need to file a tax return!
How can you file a tax return in the Netherlands?
There are two main ways to file a tax return in the Netherlands. Firstly, you can use the Belastingdienst’s website to file your tax return digitally.
However, many people who are new to the Netherlands can find this process of filing their tax return unnerving. If that sounds like you, why not choose to file with a tax agent?
Can you claim tax deductions in the Netherlands?
Some workers who have recently relocated to the Netherlands may be eligible for certain tax deductions and credits. However, exactly what you can claim will depend on your personal circumstances.
Factors that can impact your ability to claim deductions include your country of origin, how much you earned while in the Netherlands, and how long you were in the Netherlands for.
When is the deadline for me to file a tax return?
If you are filing a Dutch tax return, the deadline is July 1 of the year following the tax year. So, if you were in the Netherlands in 2022, you will need to file by July 1, 2023. However, if you use a tax agent, the deadline may be extended up to a maximum of five years.
You are required to pay tax in the Netherlands if you have received an invitation to file a return or you received income and didn’t pay enough tax on it.
What happens if a non-resident fails to file a Dutch tax return?
If you owe money and fail to lodge a tax return and owe the Belastingdienst money, you will incur fines and penalties on top of the tax that you owe.
Can non-residents receive a tax refund from the Netherlands?
Many non-residents in the Netherlands are due a tax refund! Exactly how much you can claim will depend on a variety of factors.
For example, if any of the following apply to you, you could be due a Dutch tax refund:
- You only worked for part of the tax year
- You changed jobs
- You took on more than one job
- Your non-Dutch income is less than 10% of your world wide income
Who can help you claim a Dutch tax refund?
In short, there are two ways to claim your tax refund: you can either file by yourself directly with the tax office or you could enlist the services of a tax agent.
Remember, if you choose to file with a tax agent, it is likely that you will be 100% tax compliant with the Belastingdienst.
Taxback will guide you through the tax return process, ensuring your compliance with tax authorities and making sure that you receive your maximum legal tax refund!