At ING, we're committed to helping you begin your financial journey in the Netherlands with confidence, so we've compiled essential information about the Dutch tax system. Our aim is to ensure that when the 'blue envelope' from the Tax Administration arrives, it holds no surprises.
"}},{"componentType":"sectionTitle","title":"Understanding the Dutch tax system"},{"componentType":"paragraph","richBody":{"value":"In the Netherlands, income is divided into three different types, referred to as box 1, box 2, and box 3. Each box has its own tax rate(s) and regulations. Understanding these boxes and how they work is key.As an expat in the Netherlands, you’ll be faced with tax issues like income taxes, payroll taxes, value added tax, and allowances.
In box 1, you pay tax on your taxable income from freelance or employed work, as well as home ownership. If you’re an expat, box 1 is typically where you’ll pay the most tax.
What’s included:
Box 1 rates
These rates include social insurance contributions. If you qualify for the Expat Scheme (30% ruling), part of your salary may be paid to you untaxed.
"}},{"componentType":"sectionTitle","title":"Box 2 – Tax on substantial interests"},{"componentType":"paragraph","richBody":{"value":"In box 2, you pay tax on income from any substantial interest. You have a substantial interest if you own at least 5% of the shares in a company like a private limited company (B.V.).
What’s included:
Tax rates in 2025:
In box 3, you pay tax on income from assets, including savings, shares, and a second home. Rather than taxing the actual income from these assets, the Dutch system assumes a fixed return based on your assets at the beginning of the year (January 1).
What’s included:
You’ll pay tax on any assets above a tax-free threshold (€57,684 per person in 2025). You pay tax on the assumed return, even if your real investment returns were lower. The assumed return is taxed at a flat rate of 36%.
Please note: a new system based on actual returns is expected to be implemented in the (near) future.
"}},{"componentType":"sectionTitle","title":"Filing your tax return in the Netherlands"},{"componentType":"paragraph","richBody":{"value":"If you live or work in the Netherlands, you’ll probably need to file an annual income tax return. Whether you’re here for the short or long term, understanding how to file a tax return is key. Especially in your first year, when you’ll need to file a special type of form.
You need to file a tax return if:
Even if you don’t receive a letter from the Tax Administration, filing a tax return anyway could result in a tax refund.
"}},{"componentType":"sectionTitle","title":"Filing for the first time: the M form"},{"componentType":"paragraph","richBody":{"value":"If you moved to the Netherlands during a given tax year, you’ll need to use the M form for your first tax return. The ‘M’ stands for ‘Migration’.
What you should know:
Due to its complexity and any potential language barriers, most expats use a tax advisor to correctly complete their M form.
"},"alignedImage":{"position":"right","transformBaseUrl":"https://assets.ing.com/transform/e642ce1a-df9f-4093-a376-7e8b1324d530/icon-calculator","original":"https://assets.ing.com/m/503e33e25f8556e2/original/icon-calculator.png","extension":"png"}},{"componentType":"sectionTitle","title":"Dutch income tax return due date"},{"componentType":"paragraph","richBody":{"value":"By default, the Dutch income tax return due date is April 30 following the fiscal tax year. That means the due date for your 2025 income tax return is April 30, 2026. You can request an extension on the due date until September 1, or even May 1 of the next year under a tax advisor’s extension scheme.
Key dates:
There are several ways to file your tax return:
If you have a tax partner, you can distribute certain income and deductible items favourably in the tax return.
When do you qualify as fiscal partners?
Simply living together without any legal or financial ties does not automatically make you tax partners. You’re only considered tax partners if you meet one of the above conditions.
"}},{"componentType":"sectionTitle","title":"How tax treaties help"},{"componentType":"paragraph","richBody":{"value":"The Netherlands has concluded tax treaties with over 90 countries, including the US, UK, India, South Africa, and most EU member states. These treaties specify:
Each treaty has its own rules, so you should always check the specific agreement between the Netherlands and the other country.
"},"alignedImage":{"position":"right","transformBaseUrl":"https://assets.ing.com/transform/14d9de3a-fef7-4762-9680-c108c3b2eb89/Couple-relaxing-while-renovating-a-house-together","original":"https://assets.ing.com/m/251d73d0b2b7ea6e/original/Couple-relaxing-while-renovating-a-house-together.jpg","extension":"jpg"}},{"componentType":"accordion"},{"componentType":"highlight","title":"The 30% ruling (Expat Scheme)","richBody":{"value":"If you’re recruited from abroad to work in the Netherlands, you could qualify for the 30% ruling (Expat Scheme). This tax benefit lets your employer pay up to 30% of your gross salary untaxed. This benefit is designed to compensate for expenses related to your move to the Netherlands.
To qualify for the Expat Scheme, you must meet several conditions, like a certain minimal taxable salary. You must also have lived at least 150 km outside the Dutch border before moving here. You can receive this benefit for up to five years.
Want to know exactly how the 30% ruling works, what to look out for, and how to apply? Check out the 30% ruling.
"}},{"componentType":"paragraph","richBody":{"value":"
This article has been written in collaboration with TaxSavers, a company specialising in services for expats, and is based on information from the Dutch Tax Administration (Belastingdienst). This article is meant for informational purposes only and does not constitute legal or tax advice. Tax rules change frequently, therefore the information in this article might not be fully up-to-date. Please always consult the Dutch Tax Administration and/or a tax advisor for the most up-to-date information on this topic.
Find all active up to date information on the Tax Administration website or here.
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