Dutch taxes

New Dutch tax rules for non-residents in 2015

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Finsens explains tax deductions in 2015 for non-residents following new laws, including deducting mortgage interest on your home outside the Netherlands.

If you live outside the Netherlands and you earn income or have assets in the Netherlands, then you could be classed as a non-resident taxpayer status. This means that you need to file a tax return and pay taxes in the Netherlands for any income earned in the country. Finsens, the financial planning experts for individuals, explains how non-residents can claim tax deductions in 2015.

Non-resident taxpayer status

If you are a non-resident taxpayer based outside the Netherlands, filing an income tax return for Dutch income or assets can put you in a less favourable financial position as you may miss out on tax deductions.

Until the end of 2014 you could opt to have Dutch resident taxpayer status. This meant you could claim the same deductions as a local resident when calculating your tax.

New requirements for non-residents 2015

Starting 1 January 2015, you can only qualify for non-resident taxpayer status, which offers the same benefits as Dutch residents, if you:

  • live in an EU country or in Liechtenstein, Norway, Iceland, Switzerland, Bonaire, Sint Eustatius or Saba.

  • 90 percent or more of your worldwide income is taxable in the Netherlands.

  • obtain a statement from the tax authorities in your country of residence with an overview of the income declared in your country of residence.

The changes will have consequences as from your 2015 tax return. If you do not meet all the conditions, you are no longer entitled to the advantages that the Dutch resident taxpayer status entails. For example, you can no longer deduct the mortgage interest on your primary residence located outside the Netherlands, or deduct personal expenses such as alimony payments.

Advantages of non-resident status

The qualifying non-resident taxpayer is entitled to the same deductions as residents of the Netherlands. Thus, if you do qualify for non-resident status, you are entitled to:

  • personal allowances (this can be a deduction on your income, for example, when you have study costs or certain medical expenses);

  • deduction of expenses for income provisions (annuities);

  • deduction of maintenance costs for listed (monumental) buildings;

  • deduction of the negative expenses from your owner-occupied home abroad (mortgage interest);

  • tax-free allowance, when calculating your income from savings and investments (EUR 21,330 in 2015);

  • the full amount of the tax credit that applies to your situation – if you have national insurance in the Netherlands (child benefit, old age pension, survivor benefits or exceptional medical expenses), you are entitled to both the premium and tax parts of the credits;

  • divide certain income, deductible items and payment of the tax credits between you and your partner if your partner has little or no income.

Tax status for couples

According to the new rules, couples can only qualify as tax partners if both pay tax in the Netherlands on more than 90 percent of their worldwide income or worldwide combined income.

Patricia van der Hut / Finsens 

Patricia van der Hut is a partner at Finsens, specialists in rendering services to expats in the areas of tax, mortgages and investment advice. For information, you can comment below or contact them directly.

Thumbnail credit: Simon Cunningham.

New Dutch tax rules for non-residents in 2015

04 March 2015, by Patricia van der Hut
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