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.
Every individual who lives in the Netherlands is subject to personal income tax 2020 on his or her worldwide income. A nonresident, an individual who does not is registered in the Netherlands, is subject to taxation only on certain come derived from a Dutch source. For example income obtained from a Dutch business operated by a branch in the Netherlands, income from Dutch real estate, income from employment in the Netherlands and benefits from a substantial interest in a company located in the Netherlands.
A nonresident may opt to be treated as a resident taxpayer for their nonresident income tax return 2020, 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 2020 (51,75% in 2019). Box 2 is taxed at a flat rate of 26,25% in 2020 (25% in 2019).
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.
Get 100% tax compliant
With our unique portal, you can easily prepare your own income tax returns.
All this in only 3 easy steps.
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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