Dutch personal tax return: Employee option plans and foreign employment

As a resident, you might have tax obligations in the Netherlands. However, not only residents are liable for tax in the Netherlands. A non-resident may also be liable for Dutch taxes.

Dutch income tax boxes

In the Dutch income tax system, there are three categories of taxable income, each referred to as a "Box" and each having its own rate: 

• Box 1: Taxable income from employment/self-employment work
• Box 2: Taxable income from a substantial interest (5% or more shares in a B.V. or equivalent company)
• Box 3: Taxable income from savings and investments and debts which are not considered part of Box 1 or 2

Box 1 taxation 

In Box 1, you declare your personal income from employment and self-employment. The following taxable income should also be included in Box 1: 

• Pension income 
• Income from an unemployment benefit
• Income from a disability allowance
• Alimony
• Income from other activities that do not fall under employment income or business income
• Interest income received from your own limited company (B.V.)

For 2026, the Box 1 rates are as follows:

Box 1 tax rates 2026 (including social security premiums)
€0 - €38.883	35,70% (Bracket 1)
€38.883 - €79.137	37,56% (Bracket 2)
€79.137 +	49.50% (Bracket 3)

The expenses that can be claimed on your tax return

On your personal tax return, you can also claim some expenses to reduce your taxable income, thereby reducing your tax bill. Some personal expenses that can be deducted are:

• Mortgage interest and ground lease, as well as certain purchase expenses
• Donations to certain registered charity funds
• Certain medical expenses which are not covered by healthcare insurance and not part of your own risk (eigen risico)
• Travel expenses to work made with public transport (exceeding 10 kilometres), which weren’t fully covered by your employer
• Alimony paid to an ex-partner

These expenses can only be claimed against the second tax bracket. Therefore, you receive a maximum tax refund of 37,56%. The following items can be claimed against the higher tax rate of 49,5% (Bracket 3):

• Premiums paid into an additional private pension - note that there is a maximum amount that can be deducted on your personal tax return depending on your personal situation
• Premiums paid into private disability insurance (mainly used by self-employed people)

Option plans

There are different employee remuneration plans which employers use to retain employees. As an employee, you should first determine which type of employee remuneration plan you have.

Restricted stock units (RSUs)

Restricted stock units (RSUs) are a form of equity-based, tax-deferred bonuses that become taxable only once specific vesting conditions are met. These typically include both time-based and performance-based requirements.

From a Dutch tax perspective, RSUs are not taxed when they are granted, but at the moment they vest. The taxable value is determined by the fair market value of the shares on the vesting date. Payroll taxes are therefore due at this point, once all vesting conditions have been satisfied.

In practice, this means that taxation only occurs when the employee is entitled to the shares and the award is no longer conditional.

Once vesting takes place, employees usually receive the shares, cash, or a combination of both, depending on the terms of the plan. In most cases, the employer withholds part of the shares to cover the payroll tax obligation. The remaining net shares can either be sold immediately or retained, depending on personal preference and any applicable plan restrictions.

Get help with your tax return

Taxation of RSUs and foreign employment

In the Netherlands, RSUs are treated as employment income and taxed at their value on the vesting date. The taxable amount is allocated over the period between the grant date and the vesting date, based on the number of workdays during that timeframe.

If an employee is subject to both Dutch and foreign payroll taxation during the vesting period, for example, due to an international transfer, the taxable income must be apportioned between Dutch and foreign employment. This allocation ensures that each country taxes only the portion attributable to the time worked under its jurisdiction.

In cases where RSUs vest but the shares are not immediately tradable, the taxable moment may be postponed until the shares become tradable.

Box 2 taxation

When you hold shares in a legal company, for instance, a B.V., this should be declared in Box 2 of the tax return. You should also report any dividends you receive as a Box 2 shareholder, as well as the sale (of a portion) of the shares.

A taxpayer is regarded as having a substantial interest in a legal entity if they, either alone or together with their partner, hold at least 5% of the shares in the legal entity. This interest can be held directly or indirectly.

For 2026, the box 2 tax rates are: 

• 24,5% on amounts up to €68.843
• 31% on amounts over €68.843 

When a non-resident has shares in a Dutch registered limited company, they could be tax liable in the Netherlands.

Box 3 taxation and options (restricted stock units)

Dutch tax law mandates that residents with investments, savings, or property with a value of more than €59.357 (2026) must declare these items in Box 3 of their annual personal tax return (Box 3 debts are also included).

Tax partners have a double threshold of €118.714. Additionally, the net assets are valued on the reference date of January 1 of the corresponding tax year.

When options (restricted stock units) are vested and delivered to you, they will be owned by you as your own personal investments. These should then be declared in Box 3 (provided that they are not part of Box 1 -lucrative interest- or 2).

The Box 3 tax rate for 2025 and 2026 is set at 36% (32% for 2023 and 2024). The taxes are calculated on the fictional income. The fictional income rates in Box 3 are as follows for 2026:

Type of investment	Fictional return on income
Savings	1,28% (provisional rate)
Investments	6,00%
Debts	2,70% (provisional rate)

The taxable income from assets is determined on a flat-rate basis, meaning the actual return earned is generally not taken into account. The taxation on savings is also lower than on other investments.

When a non-resident owns property in the Netherlands, they may be liable to Dutch tax.

Court decision on fictional returns

The Box 3 taxation is based on the value of the assets. Now, you also have the option to appeal if you have less income from the assets than the calculated fictional income.

The Dutch Court ruled in June 2024 that in such cases, the tax office should use the actual income if it is lower than the fictional return. In certain situations, it may take some calculations to determine the actual return for a specific year.

To appeal, it is not necessary that you got a negative return, only that the return is less than the fictional income.

When do you need to file a Dutch tax return?

The Dutch tax return needs to be filed:

• If you have received a letter from the Dutch tax authorities (Belastingdienst) with a filing obligation.
• If you didn’t receive a letter, but you have something to declare that leads to taxes in Boxes 1, 2 or 3.
• If you expect a refund, regardless of whether you received a letter from the tax office.

In the Netherlands, it is possible to file a tax return retroactively for a period of up to five years.

Deadline for filing your tax return

The general filing deadline for your personal tax return is May 1. It is possible to apply for a filing extension of a few months if you can’t make the deadline. If you work with a tax consultant, they can often request a longer filing extension under the tax office’s filing extension scheme.