A nonresident may opt to be treated as a resident taxpayer for their non-resident income tax return 2021, provided that you are a resident of the EU or of a country that has signed a double taxation treaty with the Netherlands. Dutch tax authorities (Belastingdienst) may wish to tax recipients of Dutch sourced income, but whether Dutch tax authorities mag actually do so depends on the provisions set out in a tax treaty for the avoidance of double taxation in many cases.
The Dutch tax authorities distinguishes three types of income that are subject to personal income tax. Classified under “Box 1”, “Box 2” and “Box 3” income.
Each box has its own rules for determining the tax base and its tax rate. Income in Box 1 taxed at a progressive rate with a maximum of 49,50% in 2021.
You pay tax on your income from your assets: the so-called savings and investments basis (box 3). This is the value of your assets minus your debts on 1 January of the year for which you file your tax return, minus your tax-exempt assets. The Dutch tax authorities (Belastingdienst) do not tax the actual return, but a notional return on the value of the savings and investments basis.
Tax rates | Basis save and invest | Percentage 0,07% | Percentage 5,28% | Percentage average profit |
1 |
up to € 72.798 |
67% |
33% |
1,789% |
2 |
from € 72.798 to € 1.005.573 | 21% |
79% | 4,185% |
3 |
as from € 1.005.573 |
0% | 100% | 5,28% |
How do they calculate the return on your assets?
In 2020, there will be 3 brackets for calculating the fictive rate of return. You pay 30% income tax on the calculated fictive return.
Within expat service are tax advisors and tax specialists with a lot of knowledge and experience in the field of personal income tax returns for expatriates and internationals. By having us draw up your tax returns you avoid paying too much or too little tax. In most cases we can achieve significant tax benefits that will benefit you financially.
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Expat Service helps expats with an online tax filing service for their income tax return. Efficient, simple and affordable tax filing whenever and wherever you are in the world. That’s why Expat Service is the intelligent choice for every expat.
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