Expat in Holland
If you are working or living as an expat in The Netherlands you are liable to pay Dutch tax. In your case, it is certainly worthwhile to check the tax refund possibilities, because expats often have tax refund possibilities.
Even if you have not received an invitation to submit a tax return, it is important to have your tax situation checked by a tax advisor to ensure you don’t miss any refund opportunities while filing your tax return in the Netherlands. If you have your tax return automatically done by a firm hired by your employer you can also come to me for a second opinion.
The regular tax form is a P-form. In immigration or emigration situations however, an M-form has to be filed. This is a quite extensive tax return form which needs to be submitted on paper, but for which I have special tax software to submit the form digitally. In a situation where you only lived outside and worked in the Netherlands, a C-form for non-domestic taxation may apply.
The M-form and C-form often give opportunity for refunds. I can check what tax return needs to be submitted in your situation and also take care of other tax forms, like the preliminary tax return of your mortgage rent.
My charges as per the 1st of Jan 2023 are € 60 for a normal P-form (one person), € 75 for a joint tax form (2 tax partners) and € 90 for C – and M-forms. In the event of house purchase or sale, divorce, or income other work, additional charges of € 20 will be added on top of this rate.
Qualifying non-resident tax payer (M-form)
As from 2015, there is no longer the option to choose to be treated as a resident tax payer and be entitled to all tax benefits as residents of the Netherlands are entitled to. You must meet certain conditions and be qualified as a qualified non-resident tax payer in order to receive the Dutch tax benefits.
These conditions are: (1) you live in an EU country, in Liechtenstein, Norway, Iceland, Switzerland, Bonaire, Sint Eustatius or Saba, (2) you pay tax in the Netherlands on more than 90% of your worldwide income and (3) you can submit a personal income statement from the tax authorities of your country of residence. Only if you meet these conditions, you will be entitled to deductible items, tax credits and tax-free allowance.
Do you have a partner? And do you want the Dutch IRS to consider your partner a tax partner? This is only possible if you meet above conditions.
The year after the year of your immigration, you will be treated the same as a Dutch resident and have the same tax benefits which can be claimed in the regular P-form.
Dutch tax benefits: deductions/ spouse tax credit.
The Dutch Tax System has a number of benefits. When you own a house, the rent on your mortgage is deductible in your tax return, meaning that you don’t have to pay taxes over this amount and you will receive a tax refund.
Other Dutch tax return deductions are:
- educational costs (school fees of children are not deductible and from 2022 study costs are no longer deductible)
- charitable giving
- healthcare costs (if not covered by healthcare insurance, no own risk/ healthcare insurance premiums)
If you – as working expat – have a husband or wife who doesn’t work, he or she can be entitled to the ‘spouse tax credit‘. This refund can be as much as EUR 193 (2022) and EUR 379 (2021). In 2023 this tax credit will no longer be paid out to the least-earning partner.
Please note that if your partner lives abroad the whole year, then he/she is not entitled to this tax refund. He or she is then not considered as a tax partner or qualifying non-resident tax payer.
How can FiscAlm help you?
Because of the the complexity of the Dutch Tax System and its rules, it is very advisable to let a tax expert check your taxes and file your tax returns. Through my deep and broad experience I have been able to save a lot of money for my clients. If you want to make an appointment or request more information, please fill in my contact form or call me on 06-45174499.