Income Tax Return in the Netherlands 2025

1. Dutch Tax System

Income Tax Return in the Netherlands

• BOX 1: Income from work and home ownership
• BOX 2: Income from a substantial interest
• BOX 3: Income from savings and investments

1.1 BOX 1. Tax obligations for residents and non-residents

Income from employment and main residence

• Employee

• Self-employed / Freelancer

• Foreign income

• Alimony

• Own home as principal residence

1.2 BOX 2. Tax obligations for residents and non-residents

Income from substantial interest

• At least 5% of shares in a private limited company (BV) or a foreign company.

1.3 BOX 3. Tax obligations for residents

Income from savings, shares, second homes, and dividends. Tax rate: 36%

• Tax-free allowance 2025: €57,684 (per person)

• Reference date: January 1, 2025

• Applies to assets inside and outside the Netherlands.

(Voluntary disclosure procedure – “inkeerregeling”)

 (Income Tax Return in the Netherlands)

2. Deductible Expenses

OWN HOME:

• Deductible mortgage interest percentage: 36.97% (2024) and 37.48% (2025)

• Costs related to property purchase

PERSONAL DEBTS:

• Negative bank account balance

• Debts used to finance a second home

• Bank or student loans

HEALTH:

• Illness or disability

• Costs not covered by health insurance during the tax year

TRANSPORTATION:

• Work-related travel expenses paid by the employee

• You must live more than 10 km from work and travel more than once per week

DONATIONS:

• Ordinary: above €60

• Periodic: no minimum, but not exceeding €250,000 per year

• Must be made to an ANBI, cultural ANBI, Association (Vereniging), or SBBI

3. Types of Forms

FORM M:
When migrating or emigrating from the Netherlands during part of the year (resident status applies).

FORM P:
Registered as a resident from January 1 to December 31 of the tax year.

FORM C:
Non-resident (temporary RNI) from January 1 to December 31 of the tax year.

FORM F:
Tax return for deceased persons.

4. When Are You Obliged to File a Tax Return?

If you received the invitation letter:

• Submit the return by the date stated in the letter (between March and April 2025).

• Late filing results in a fine (€385 to €5,514 for repeat offenses) and possible suspension of benefits.

• Tax-In can request a one-year filing extension.

If you did not receive the invitation letter:

• You must file if you owe more than €57 or are entitled to a refund of €19 for the 2024 income tax year.

• You have up to 5 years to submit the tax return.

• If submitted on time, the decision will be issued before July 1, 2026; otherwise, up to 36 months.

5. Required Documents

PERSONAL INFORMATION

• Personal details, date of immigration to the Netherlands

• Annual bank statement 2025 (Jaaroverzicht 2025)

EMPLOYEE

• Annual payslip 2025 (Jaaropgaaf 2025)

• Previous year’s income tax return (Inkomstenbelasting 2024)

PROPERTY PURCHASE IN THE NETHERLANDS

• Annual mortgage report 2025 (Jaaroverzicht hypotheek 2025)

• Property valuation (WOZ 2024)

• Property purchase invoice issued by the notary

FISCAL PARTNER
Persons registered at the same address who also:

• Are married, or

• Have a registered partnership, or

• Have children together, or

• Jointly own a property.

6. BOX 3 Changes

Box 3 and fictitious yield rates

• Taxes are based on fictitious yield rates for capital assets (savings, investments, second homes, crypto, etc.)

• Problem: fictitious yield rates often do not reflect real returns

• 2021 Ruling: Supreme Court declared the fictitious calculation unfair

Reform: Real yield rates

• Taxes will be based on actual yields (savings, investments, second homes, crypto, etc.)

• Aims for more transparency and fairness for small investors and savers

Implementation Timeline

• October 2024: Letter with details for eligible taxpayers

• From July 10, 2025: Report real yield (Werkelijk rendement box 3)

• End of 2025: Final assessment and possible refunds

Key Rule:

• Fictitious yield rate is HIGHER than the real yield rate:

• Tax refund for overpaid taxes.

• Fictitious yield rate is LOWER than the real yield rate:

• You will not pay more than the amount previously calculated.

7. Partial Non-Resident Status and 30% Ruling

7.1 Requirements

• Employed and recruited from abroad

• Apply within 4 months of starting the job

• Possess specific expertise scarce in the Dutch labor market

• Lived more than 150 km from the Dutch border prior to employment

• Gross salary (age 30 and over): above €46,660 in 2025

• Gross salary (under 30 with a Master’s degree): above €35,468 in 2025

• Salary cap: €246,000 in 2025

7.2 30% Ruling Changes

Before 2024:

• Employees benefiting from the 30% ruling before 2024 remain unaffected and may keep it for the full 5-year term.

2024:

• As of January 1, 2024, the “30%-20%-10%” phased reduction applies.

2025: Partial non-resident taxpayer status

• Employees with 30% ruling before January 1, 2024 keep it until 2026

• Employees granted the 30% ruling on or after January 1, 2024 will lose it in 2025

2027:

• The previous phased reduction (30%-20%-10%) from 2024–2026 will be replaced by a fixed rate of 27% starting in 2027 for employees under the 30% ruling granted from January 1, 2024.

Source: Belastingdienst

 https://www.tax-in.com/en/news/