Tax Residency

Information about the income tax rulings for residents, partial non-residents and non-residents in the Netherlands...

The taxpayer’s circumstances and registration at a municipality are of great importance in determining fiscal residency. The following facts and circumstances can be relevant when determining tax residency in the Netherlands:

• Where is the taxpayer’s permanent home situated?
• Where are the taxpayer’s financial and social bonds strongest?
• What are the intentions of the taxpayer?

There are three types of tax statuses:

• Resident
• Partial non-resident
• Non-resident

Resident for tax purposes

When a taxpayer has registered at a municipality in the Netherlands they are treated as a resident for tax purposes. A resident taxpayer in the Netherlands is taxed on worldwide income and is eligible to claim the following personal tax deductions, if applicable:

• Alimony payment to former spouse
• Payments for supporting children under 21 years old
• Expenses for illness (including costs of diet by medical orders), decease or disability
• Expenses for visits on the weekend by seriously disabled children
• Expenses for studies for the taxpayer and/or their spouse
• Expenses for maintenance of houses under protection of monuments
• Donations to charitable institutions

Allowances

Resident taxpayers can also request certain allowances if they meet the conditions that apply.

There are four types of allowances that can be claimed:

• Rent
• Health Care
• Child (not from the SVB)
• Day-care

Child benefit

Dutch child benefit is also available for people living and working in the Netherlands who have a child. In order to be eligible for this benefit applicants must:

• Hold a valid residence permit, and
• Hold a work permit if not from an EU country or Switzerland, and
• Not have a secondment certificate from another country

The Social Insurance Bank (SVB) provides information regarding Dutch child benefit.

• See Social Security Benefits for more information about benefits available in the Netherlands

Partial non-resident for tax purposes

Qualification as partial non-resident is only applicable if the 30 percent ruling is granted. This status means that taxpayers are taxed as a resident taxpayer in Box 1 (income from work and principal residence) and as a non- resident taxpayer with respect to the other two tax boxes.

Non-resident for tax purposes

A non-resident taxpayer is an individual who is not treated as a resident taxpayer in the Netherlands. Therefore, they are taxed on worldwide income elsewhere. A non-resident taxpayer will pay tax only on income that can be allocated to the Netherlands.

• Taxation Boxes
• Tax Credits
• Tax Residency
• Tax Rulings