If you live in the Netherlands, you will qualify as a resident taxpayer. If you live abroad and receive income from the Netherlands which is taxable in the Netherlands, you qualify as a non-resident taxpayer. In both cases you will be subject to Dutch income taxation.

There are three types of income on which taxes are levied:

  • Income from employment and home ownership (box 1)
  • Income from a substantial interest (box 2)
  • Income from savings and investments (box 3)

This is referred to as ‘the box system’. These taxes will be calculated on the basis of your yearly tax return. The wage (income) tax, which is deducted from your salary, will be settled against the income tax liability that arises from the tax return.

Resident taxpayers of the Netherlands, and non-resident taxpayers opting for resident taxpayer status should report their world-wide income on their income tax returns.

All taxpayers are entitled to a general rebate against the tax owed: the general levy rebate. On top of this you may qualify for supplementary rebates against the tax owed.