Tax Credits for Expats

The life on an expat in the Netherlands is not always bakfiets and stroopwafels. Unfortunately, learning to navigate the Dutch tax system is a necessary requirement we all must face. Below are some tax credits you may be able to receive to offset those large upfront taxes.

All residents and employees of The Netherlands are entitled to a General Tax Credit (also known as algemeneheffingskorting). The amount varies for each individual less than 65 years of age depending on income, but becomes less when the salary reaches above € 19.822.

Rent Benefit may be available to some residents renting a property in the Netherlands and spending a large portion of their income on housing. Receiving this tax credit depends on your age, living situation, amongst a few other situations. Application for the rent benefit can be filled out on the Tax Administration website

If your child will be attending daycare while you are in the Netherlands, you may be eligible for the Childcare Benefit. This can only be received if you and your partner are both working or studying, with only a few exceptions otherwise.

Residents with Dutch health care insurance may be eligible for a Healthcare Benefit. Requirements depend on Dutch residency and level of income.

A Child Benefit may be something you qualify for if your children are under the age of 18 and your income is below a certain threshold. This is one benefit that you will notneed to apply for, if you meet the thresholds then the Tax Administration will send you the information on how to receive this benefit.

The 30% Tax Ruling is a tax incentive for employees recruited from abroad, who are usually acknowledged as a “highly-skilled migrant worker” in the Netherlands. It allows employers to grant a tax-free lump sum to cover additional expenses incurred by the expats. This lump sum should cover up to a maximum of 30% of the sum of the wages and allowances.

There are always additional credits that you may qualify for depending on your situation (such as level of income or age).

The Dutch Income Tax calculator is a good way to get an idea of what credits you may receive, and you can always get in touch with the Tax Administration for any questions.

By Ashley Herbert