Deductions when living abroad with income from the Netherlands
You are a non-resident taxpayer if you live outside the Netherlands but do have Dutch income. These are earnings in the Netherlands that you receive from work and one’s own home (box 1), substantial interest (box 2) and savings and investments (box 3).
Only the income on which the Netherlands may levy tax is of interest to us.
- You are a non-resident taxpayer: no deduction
- Fiscal tax partner
- No entitlement to tax credits and deductions
- How do we calculate your tax?
- Property in box 3
- Not subject to tax in the Netherlands all year round
You are a non-resident taxpayer: no deduction
Are you a non-resident taxpayer, or a qualifying non-resident taxpayer? If so, only enter your income taxed in the Netherlands in your tax return. You can request an exemption for Dutch income on which you do not have to pay tax in the Netherlands in your tax return.
Fiscal tax partner
You cannot have a tax partner if you are a non-resident tax payer. In that case, you only pay tax in the Netherlands on your own Dutch income and your own part of your capital (your assets minus your debts).
Example
You are married in community of property. Together with your spouse you have a holiday home in the Netherlands. You both own 50% of this house. In your tax return, you then state 50% of the value of this property in box 3. And your spouse will indicate the other 50%.
No entitlement to tax credits and deductions
If you are a non-resident taxpayer, you are usually not entitled to:
- the income tax part of tax credits
- personal allowance
- deduction of expenditure on income provisions
You are entitled to tax-free allowance.
Please note!
Do you live in Belgium, Suriname or on Aruba? Then you are still entitled to certain tax credits, deductibles and tax-free allowance. Read more about special situations.
Use our tool to check whether you are entitled to tax credits.
How do we calculate your tax?
We add up the income tax and national insurance contributions on your income in the Netherlands. The total amount will be reduced by the amount of the tax credits to which you are entitled. If you have already paid tax (wage tax or income tax) and national insurance contributions, we will also set them off. The remaining amount is your tax to be paid or refunded.
Property in box 3
If you do not live in the Netherlands, we will not tax all your assets. We usually tax your real estate in the Netherlands, such as your holiday home. However, we do not tax your Dutch bank account, for example, or an annuity insurance taken out in the Netherlands.
You must declare the following assets in the Netherlands:
- real estate in the Netherlands
It concerns real estate that is not to be considered as your own home, for example a holiday home or rented property in the Netherlands. If you have your own home in the Netherlands, you must state the income from this in box 1. - rights to immovable property located in the Netherlands
This concerns rights that directly or indirectly relate to immovable property in the Netherlands, for example a right of usufruct or leasehold. - rights to shares in the profits of a company in the Netherlands
These are companies whose management is based in the Netherlands. They are not rights arising from securities ownership or an employment relationship. Furthermore, the rights may not previously have been indicated in box 1 or box 2.
Debts relating to Dutch assets are included in the calculation of your assets. Example of a debt: a mortgage loan for a holiday home in the Netherlands.
You pay taxes on your income from your assets, the so-called basis for savings and investments (box 3). This is the value of your assets minus your debts on 1 January of the year for which you are submitting a return, minus your tax-free allowance. We do not tax the actual revenue but a notional return on the value of the basis for savings and investments.
Not subject to tax in the Netherlands all year round
If you are not subject to tax in the Netherlands for the entire year, the reference date of 1 January will still apply for the calculation of the savings and investments base, but the percentage for the calculation of the national yield will be adjusted proportionately over time.
Example
You do not live in the Netherlands. You are only liable to foreign tax because you own a house in the Netherlands. On 15 July, you will sell the house. From that moment on, you will no longer have to pay tax in the Netherlands. However, the reference date for calculating the basis for saving and investing in this case is 1 January. The national yield will then be reduced proportionately over time. This return is then 6/12 x €2,000 = €1,000.
