A number of tax breaks are available for foreign investors in the Netherlands and qualified individuals. Knowing the actual tax deduction method and the tax breaks, you are entitled to while working or running a business in the Netherlands can help reduce the final tax return value. The annual tax return filing deadline is due on May 1st each year and investors and individuals can implement these changes in due time until the end date. The experts at our Dutch law firm can assist you with information and advice on making these tax reductions and implementing the available tax minimization methods.
The 30% ruling in the Netherlands
Hiring foreign employees in the Netherlands
also includes a special 30% ruling
. In order to qualify for the 30% tax reduction of the normal salary tax, a foreign employee needs to have lived abroad when he or she was recruited for the job in the Netherlands. Another requirement is for the employee to have a certain monthly salary.
One of our lawyers in the Netherlands can give you more information on the particularities of the 30% ruling and other details about the investment legislation.
Tax reductions under the double tax treaties
The Netherlands has signed a number of double tax treaties
which have advantages both for companies and individuals, depending on their country of origin and the type of income they derive from one or both jurisdictions. Foreign properties need to be declared and Dutch residents can obtain a double tax deduction for these.
Deductions for individuals in the Netherlands
Sole traders in the Netherlands
or individuals working as freelancers can gain an annual self-employed tax break or a new business deduction that can be used several times during the first years of business. Personal deductions can also be made for charitable donations, alimony payments, study expenses or health care costs (apart from those covered by insurance).
The Netherlands also allows for the usage of a special tax deduction for married couples if one of the spouses is unemployed.
For more information about the legislation for investments and the business law in the Netherlands, you can contact our Dutch law firm