Tax refund Netherlands
Taxes are high in the Netherlands but you can also get a lot of tax refund in the Netherlands.
Tax refund Netherlands you can get if you have paid too much tax and social security contributions.
Paying too much tax and social security contributions can happen if you worked in the Netherlands less than 12 months.
The calculations of the wage tax is based on an estimated yearly salary.
The payroll administration will use the tax rate which is applicable for the yearly salary.
If you haven’t worked the whole year the tax rate can be lower than the one calculated by the payroll administration.
You are then entitled to a tax refund.
You can also get a tax refund in the Netherlands if you have tax deductions.
You can apply for this tax refund in the annual income tax return or by filing a request for a provisional refund.
The three known tax deductions are:
1) Tax refund Netherlands, having a own house
If you own a house in the Netherlands and you use it as your main residence then you can
claim some tax deductions.
Interest you have paid for a mortgage loan are tax deductible.
Also if you paid interest on other loans (no mortgage) for the main residence then you can also
declare the interest that is paid. These tax deductible cost will give you a tax refund Netherlands.
Financing cost made for the purchase and renovation of the main residence
If you need a mortgage, you will make cost to arrange that mortgage.
These cost are financing cost and they are tax deductible if the mortgage is for purchasing
and renovate you main residence.
– notary costs
– cost of the mortgage advisor
– valuation costs
– cost related to the National Mortgage Guarantee (NHG)
– fine which has to be paid because of early repayment of the old mortgage (change mortgage provider)
This is the so called “erfpacht”.
You pay this if the ground is not yours, but for example of the municipality.
These costs are tax deductible and give you a tax refund in the Netherlands.
2) Tax refund Netherlands, general tax credit
This is a tax credit on the calculated income tax or wage tax.
Due to this credit you pay less tax.
The tax credit is already taken into calculation by the employer or social security organization.
If your tax partner doesn’t receive an income or an income lower than +/- € 6.500 the tax credit is not automatically granted as an tax refund.
In that case it is necessary to request the tax authorities directly to reimburse the tax credit to your partner.
This can be done if you have paid enough tax to support the tax credit.
In the Netherlands each person is taxed individually, but to determine
whether tax refund can be claimed it is necessary to look at the income details of both (fiscal) partners.
The general tax credit is a maximum of € 2.242 in 2016.
Since 2009 the payment to the partner who doesn’t receive (sufficient) income is reduced annually.
This happens over a period of 15 years with an annual reduction of 6 2/3 percent.
Pay out amounts 2016:
Born before 01-01-1963 € 2.242.
Born after 01-01-1963 € 1.047.
Conditions to qualify for this tax refund by the tax authorities
• you and your partner are fiscal partners;
• you are liable to tax (registered with the Dutch tax authorities);
• you don’t have (sufficient) income;
• your partner pays sufficient tax.
The general tax credit can be claimed in the annual income tax return or by filing a request for a provisional refund.
3) Tax refund Netherlands, education
If you have followed a course or a study with the purpose to get a (better) job or to make a career step
then you can claim cost back to get a tax refund Netherlands.
The following cost can be deductible:
– application fee
– enrolment fee
– books and other literature
– materials and pc
– cost of exams
Minimum and maximum amount
Education costs can only be deductible if they are more than € 250.
The first € 250 are not deductible.
There is also a maximum deductible amount per year. This is € 15.000.
The deduction only concerns costs made for yourself or your fiscal partner.
Costs made for your children, like university fees are never deductible as education costs in your tax return.
Costs of a Dutch language course are not deductible since these costs are too general.
This is only different if the Dutch language course is required to follow additional education.
Interested in applying for your tax refunds?
There are many costs that are tax deductible and can give you tax refund Netherlands.
Expats Amsterdam advice you to contact the specialized tax company Blue Umbrella to get as much refunds as possible.
In the last 10 years they have helped many expats in getting tax refunds.
You can contact Blue Umbrella or directly open a free account by clicking on the logo.