Mastering Dutch Tax Refunds: A Guide for Expats | Claim Your Refund with Taxback

Generally, to be considered a resident in the Netherlands for tax purposes you must be registered at a Dutch address for the whole calendar year.

It is important to determine your tax residency status to ensure you file a correct tax return and avoid overpaying tax.

Did you know the average Dutch tax refund is a substantial €910 and many people simply leave this with the tax man?

It’s your money and Taxback can help you to claim back everything you’re owed.

In this article, we discuss the Dutch tax system, challenges faced by expats in the Netherlands, deductions and benefits to which expats may be entitled, and claiming a tax refund in the Netherlands.

Navigating the Dutch tax system: key components explained

If you earn income as an expat in the Netherlands, you are required to pay tax on your earnings.

The amount of tax you pay will depend on your residency status. In general, those who are deemed non-residents will pay a higher rate of tax than residents.

Tax rates can range from 9.28% to 49.50%, depending on the type and amount of income you receive.

In the Netherlands, there are three types of taxable income which are split into three separate boxes.

Box 1 – taxable income from your employment and home ownership
Box 2 – taxable income from substantial interest
Box 3 – taxable income from savings and investments

Learn more about Dutch taxes here.

Am I considered a resident or non-resident of the Netherlands for tax purposes?

As an expat in the Netherlands, you will be considered a resident for tax purposes if you reside at a registered Dutch address for the whole calendar year and you are employed in the Netherlands.

Qualifying non-resident taxpayer

A qualifying non-resident taxpayer refers to someone who lives outside of the Netherlands but pays tax on at least 90% of their income in the Netherlands.

To be classified as a qualifying non-resident taxpayer you must live in an EU country, or in Norway, Switzerland, Saba (a municipality of the Netherlands), Sint Eustatius, Liechtenstein or Iceland.

If you are a qualifying non-resident taxpayer you will be entitled to the same tax benefits as resident taxpayers in the Netherlands.

Municipal taxes

If you own property in the Netherlands you will be required to pay municipal taxes. The amount of municipal tax you pay will vary depending on the locality your property is in.

Some municipal property taxes include:

Sewage rates
Garbage collection rates
Property tax

Only property owners are subject to this tax. However, regardless of whether you own property, you must register your Dutch municipality when you first arrive in the Netherlands or if you change the address.

The average Dutch tax refund is €910

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Many taxpayers ask ‘When do I get my tax refund in the Netherlands?’

The Dutch tax year runs from 1 January to 31 December. The deadline to file your tax return for the previous year is 1 May for a resident of the Netherlands and 1 July for a non-resident.

Challenges faced by expats in the Netherlands when seeking their tax refunds

At Taxback, we understand that taxes can be confusing, especially when you aren’t a resident of the country you are filing in.

Some challenges faced by non-residents when seeking their Dutch tax refunds include:

Difficulties understanding the tax system

It can be complex to understand the tax rules and regulations of a different country.

As a result, you could miss out on tax benefits that you’re entitled to claim.

Residents of the Netherlands will be subject to tax on their income earned worldwide. Whereas, non-residents typically only pay taxes on their income sourced in the Netherlands.

There are also different tax rates and credits which apply depending on your tax residency status. Therefore, it’s important to understand and be aware of your tax status so that you receive what you’re entitled to.

As an expat, you should note the key tax dates throughout the year to ensure you don’t miss any deadlines.

Filing the wrong tax form

It is also important to know your tax residency status to ensure you are filing the correct tax form as they differ for residents and non-residents.

If you file an incorrect tax form, it is important to rectify your Dutch tax return to remain compliant with the tax authorities. This is referred to as Inkeerregeling which is a voluntary disclosure scheme where you can amend any incorrect tax returns and pay the correct tax owed.

Need help filing your Dutch taxes? Get started now with Taxback.

Maximising deductions and benefits as an expat working in the Netherlands

Residents and non-residents of the Netherlands do not have the same tax deductions and credits.

If you are an expat working in the Netherlands, you may be eligible for some of the following tax deductions and benefits.

30% tax-filing rule

The 30% tax-filing rule is a tax exemption which is available to foreigners in the Netherlands. This enables eligible migrants who relocate to the Netherlands for work to receive a tax-free allowance of up to 30% of their salary.

To be eligible for the 30% ruling, the following conditions must be met:

Your employer must be registered with the Dutch tax office
There must be an official employment relationship between the employee and the employer
At the time of hiring, the employee must have been living over 150km from the Dutch border for the previous 16 out of 24 months
Both the employer and the employee must agree that the 30% ruling is applicable
You must have a minimum gross salary of €41,954 in 2023

Find out what tax you could be owed with our Netherlands tax refund calculator.

Double taxation treaty

It is also important to check if there is a tax treaty between your home country and the Netherlands. This way you will reduce the tax owed and avoid paying tax twice on the same income.

You may also be entitled to a tax refund if:

You were only employed for part of the year
You changed jobs throughout the year or if you took on an extra job
If your spouse and children accompanied you to the Netherlands

Did you know that our average Dutch tax refund is €910?

Check what you could be due back using our Dutch tax refund calculator.

Health insurance allowance (Zorgtoeslag)

You are legally obliged to have health insurance if you live and work in the Netherlands.

As this can be expensive, the Dutch government offers a health insurance allowance, known as Zorgtoeslag.

You might be eligible to claim the health insurance allowance if:

You have Dutch health insurance
If you have Dutch, EU, Liechtenstein, Norwegian, Icelandic or Swiss nationality or have a valid residence permit
If your personal or joint income doesn’t exceed a maximum amount
If your personal or joint savings and investments don’t exceed a maximum amount

Check your eligibility for the health insurance allowance.

How long does it take to get my Dutch tax refund?

Many people ask ‘Where’s my refund?’.

In general, it can take three to four months to receive your tax refund in the Netherlands. However, this can vary depending on how busy the tax office is at the time that you apply.

Streamlining the tax refund process in the Netherlands for non-residents

At Taxback, we will handle the entire tax refund process for you.

We understand that filing taxes can be complicated, especially in a different country where you may not understand the tax system and there may be a language barrier.

We will handle the process from start to finish, ensuring you receive your maximum tax refund and that you remain compliant with the Dutch tax authorities.

The average Dutch tax refund is €910

GET YOURS TODAY