Money and taxes are two central components of life, also in the Netherlands. Whether you're opening a bank account, receiving your salary, or transferring money abroad, you'll come into contact with banking and tax authorities sooner or later, so it's important you have a good understanding of both of these topics.
A short history of taxes in the Netherlands
People in the Netherlands have been paying taxes for centuries. In the 18th century, the Dutch government was assured of income by taxing necessary goods like firewood, soap, salt, grain, meat, wine, peat, coal and wool. Back then, people paid the same amount of taxes, no matter their income.
In 1806, Alexander Gogel, Minister of Finance at the time, introduced a system of general taxes. It wasn’t until 1914 that income tax (inkomstenbelasting) was introduced. The purpose of this tax is to tax people according to their income. The more money you make, the more tax you have to pay.
In 1934, the Netherlands introduced a sales tax (omzetbelasting) for the first time. This tax was replaced by the VAT sales tax in 1968. In 1964, a payroll tax (loonbelasting) was introduced.
Nowadays, the government of the Netherlands gets most of its revenue from taxes. The Ministry of Finance (Ministerie van Financiën) is responsible for the implementation of national tax legislation, whilst the Belastingdienst takes care of the actual execution of the legislation. If you earn money whilst living in the Netherlands, you are required to pay taxes.
Tax advisors in the Netherlands
Doing your taxes is not fun. This is true for most Dutch citizens, let alone expats. Even the Belastingdienst admits this, hence their slogan: Leuker kunnen we het niet maken, wel makkelijker (we cannot make it more fun, but we can make it easier). If you would like some help with your taxes, you should take a look at our list of Dutch services & advisors in the Netherlands.
Financial advisors in the Netherlands
From making sure you have good retirement provision, to investing your money wisely, a financial advisor can help you put in place a solid, long-term financial plan. Our listing of expat-friendly, English-speaking financial advisors in the Netherlands is a good place to start if you want to get your financial affairs in order.
The Dutch tax system
What are the main tax types that you will encounter whilst living and working in the Netherlands? How does the box system of taxes work in the Netherlands, and what are the tax rates? Here’s what you need to know about the Dutch tax system.
Tax return in the Netherlands
The Dutch financial year runs from January 1 to December 31. In the new year, plenty of people submit a tax return in the hope of getting a refund on their tax bill. Sometimes, for instance if you have multiple sources of income or moved to or left the Netherlands in the middle of the year, you may be required to fill out a tax return. Learn how tax returns in the Netherlands work with our dedicated guide.
30% ruling
Are you a highly skilled migrant working in the Netherlands? If so, see if you can make use of the 30% ruling. This tax advantage for expats in the Netherlands was introduced to attract foreign highly-skilled workers by making 30% of their income tax-free. Our guide looks at the requirements and process of applying for the 30% ruling.
Dutch tax office (Belastingdienst)
The Belastingdienst is the tax collection and customs service of the Netherlands. It is part of the Ministry of Finance. It takes care of:
- The import, export and transit of goods.
- The detection of fraud (fiscal, economic and financial).
- The levying and collecting of taxes.
- Paying out benefits related to income for childcare, rent and health care.
Banking in the Netherlands
If you have recently moved to the Netherlands for the first time, you'll need to open a bank account to receive your salary, rent an apartment, and pay for your health insurance. The good news is that there is a large selection of banks in the Netherlands, and many of them have customer service and internet banking in English. Some even offer the option of opening an account before you get your BSN. Learn more about opening a bank account in the Netherlands.
Banks & money transfer companies in the Netherlands
Money transfers to and from the Netherlands
If you need to transfer money from your home country to the Netherlands, or vice versa, it's worth looking into the options open to you, as some are far more expensive than others. Our guide to money transfers to and from the Netherlands looks at the pros and cons of different options like online transfers, bank transfers, cash remittance services, and mobile money.