Tax advantage

In the Dutch tax system there are several advantages to benefit from. When an expat comes to the Netherlands to work, he/she can benefit from these tax advantages as well.

Examples of these advantages are:

• Highly skilled migrants. In the case where an expatriate is highly qualified, he/she can apply for the highly skilled migrant status. An advantage of this status is that an expat with this status can apply for the 30% facility.
• 30% facility. Under this facility the top 30% of the salary is not taxed for income tax. If the expatriate has a gross income of € 200,000.- the taxable income is only € 140,000.-.
• Mortgage interest is tax deductible. The interest the expat pays on the mortgage is tax deductible. The expat can recieve a provisionan refund from the Tax Office on a monthly basis. The expat therefore does not have to wait before he/she can enjoy this advantage, but can enjoy it right from the start of the mortgage.
• General tax credit. Everyone in the Netherlands who is taxable has a right to the general tax credit. If the partner of the expat is unemployed, he/she also has a right to this general tax credit. In the Netherlands this leads to the payment of the general tax credit to the partner by the Tax and Customs Administration each month.

Tax refund

The expat might get a tax refund based on the above-mentioned tax advantages. At the end of each year the tax refund is determined after the tax return has been filed.

The expat can choose to receive a provisional tax refund each month. At the end of the year it will be checked to verify if the provisional tax refund was accurate. If necessary, a final payment will be made.

All the advices with which H&N Associates provide the expats is drawn up in such a way that, based on the personal circumstances and wishes of the expats, the Dutch tax advantages are optimally used.

Need assistance with tax returns?

H&N Associates is an independent financial advisor specialised in assisting expats with all their financial and tax related questions. Fill in the tax enquiry form to be contacted by one of our advisors for assistance with tax returns and the optimal use of Dutch tax advantages.