Tax in the Netherlands
What about my savings and investments? Do I have to transfer them to the Netherlands?
What is the 30% ruling and when do I qualify for this?
This is a tax allowance incentive for employees recruited from abroad who bring specific skills to the Netherlands. It acknowledges that additional expenses are incurred by expats (extraterritorial costs) in settling into a new country. If you come to work in the Netherlands and you are eligible for the 30% ruling, you can choose partial non-resident taxpayer status. When having partial non-resident taxpayer status, you are considered a non-resident taxpayer for part of the income tax.
If you opt for partial non-resident taxpayer status, your taxable income from a substantial interest (box 2) and your taxable income from savings and investments (box 3) will, for income tax purposes, be determined according to the regulations that apply to non-resident taxpayer status. In practice this means that you are exempt of these taxes, apart from in box 2 a Dutch shareholding and in box 3 Dutch real estate.
As well as the 30% ruling, you can also be given a tax-free allowance by your employer for extraterritorial costs associated with providing schooling for your children. However, the school fees must be for an international school or for an international department within an ordinary Dutch school (i.e. where the curriculum follows a foreign system or where the department is only accessible to children of seconded employees that are temporarily assigned to work for a another organisation or a different part of their employer). Applications (completed by both employer and employee) should be made to the Belastingdienst Limburg Kantoor Buitenland in Heerlen.
To receive the 30% ruling from the Belastingdienst (Tax authorities), you must comply with the following conditions:
- You have an employment relationship with a company or organisation in the Netherlands
- You have specific expertise that is either non-existent or where there is a scarcity of availability in the Dutch employment market
- You are deemed to possess that expertise if your salary (not including the tax-free allowance in the Netherlands) is at least €37,296 for 2018
- You are under the age of 30, in possession of a Master’s degree and your salary (not including the tax-free allowance in the Netherlands) is at least €28,350 in 2018
- You have a valid decision (ruling) which has been granted by the Belastingdienst after 1 January 2012. Please note that if you have previously lived or worked in the Netherlands, the maximum term of your decision is less than eight years
- You can make use of the 30% facility if, in the 24 months prior to your 1st day of work in the Netherlands, you work more than 150 kilometres in a straight line from the Dutch border
You can find the latest information in regards the 30% ruling requirements here.
There are exceptions to the 24-month term and for people with a certain academic qualifications. Therefore, it is advisable to either:
- Ask your tax advisor or employer for more information
- or contact the Tax authorities on the English speaking telephone help line on 0555 385 385 or from abroad on +31 (0) 555 385 385. The opening times are: Monday to Thursday: 08.00-20.00 hours and Friday: 08.00-17.00 hours