Dutch Tax return:
a brief introduction to the Dutch income tax system
Tax Obligations in the Netherlands
As a resident of the Netherlands, you are subject to Dutch tax regulations. Non-residents may also be liable for tax, for instance, if they own real estate in the Netherlands or hold shares in a Dutch B.V. Recent changes in Box 3 income calculations make it essential to stay informed about your tax position.
Three Tax Categories in the Netherlands
The Dutch tax system categorizes taxable income into three groups:
- Box 1: Income from employment and homeownership.
- Box 2: Income from a substantial interest (5% or more shareholding in a B.V.).
- Box 3: Income from savings and investments.
Box 1: Tax on Employment Income
Box 1 includes income from employment, self-employment, pensions, benefits, and alimony. The tax rates for 2025 are:
- 35.82% up to âĴ38,441
- 37.48% from âĴ38,441 to âĴ76,817
- 49.50% above âĴ76,817
Deductible expenses include mortgage interest, donations to recognized charities, and specific medical expenses. These deductions are limited to the second tax bracket.
Box 2: Substantial Interest
If you own at least 5% of a companyâs shares, dividends and capital gains fall under Box 2 taxation. The tax rates for 2025 are:
- 24.5% up to âĴ67,804
- 31% above âĴ67,804
Under the 30% ruling, Box 2 income may be tax-exempt if the company is not considered tax-resident in the Netherlands.
Box 3: Savings and Investments
For 2025, the tax-free threshold for assets is âĴ57,684 per individual (âĴ115,536 for tax partners). Assets exceeding this threshold are taxed based on a notional return:
- 1.44% for savings
- 5.88% for investments
- 2.62% for debts
Right to Appeal
Following a 2024 court ruling, taxpayers may appeal if their actual return is lower than the notional return. This can lead to a tax reduction, but the benefits vary per situation.
Box 3 and the 30% Ruling
Employees with the 30% ruling are considered partial non-residents and are not required to pay tax on foreign assets. However, starting in 2025, Box 3 assets must be declared. Employees who held the 30% ruling in 2023 fall under transitional law until 2027.
Filing a Tax Return
You must file a tax return if:
- You receive an invitation from the Dutch Tax Authority.
- You have taxable income in Box 1, 2, or 3.
- You expect a tax refund.
The income tax filing deadline is May 1. Also for non-residents (C-form), the deadline is May 1. For migrants (M-form) the deadline is July 1. Extensions are possible, particularly when working with an AAme tax advisor.
Professional Assistance
Due to the complexity of Box 3 calculations and recent legal changes, consulting an AAme tax advisor can help optimize tax benefits and avoid unnecessary taxation.