Start Your Tax Return: A Guide for Expats in the Netherlands

Tax season is here! Whether you're filing your Dutch tax return for the first time or are an experienced expat taxpayer, understanding the system can help you optimize your return. Here’s what you need to know to make the most of this season. 

The Dutch tax system: a quick overview 

The Netherlands divides taxable income into three categories (also known as “boxes”): 

Box 1 – income from work and home ownership 

This includes salary, bonuses, freelance income, pensions, benefits, foreign income, and alimony. If you own a home, you must account for the eigenwoningforfait (a taxable value assigned to your property).  

For 2024, the tax brackets were as follows: 36.97% tax for income under €75,518 and 49.50% for income above €75,518. In 2025, there are three brackets: 35.82% is taxed on income under €38,441, 37.48% applies to the range of €38,441 to €76,817, and above that the tax rate is 49.50%. 

Box 2 – income from a significant financial interest 

If you (alone or with a tax partner) hold at least 5% of shares, profit certificates, or voting rights in a company, you are subject to Box 2 taxation. This includes taxes on dividends and capital gains. 

In 2024, 24.5% was taxed on income in this box under €67,000, and 33% for above that number. This year, income under €67,804 is taxed at the same 24.5% and above that sum – 31%.  

Box 3 – income from savings and investments 

Everyone benefits from a tax-free capital threshold. In 2025, the limits are: 

• €57,684 for individuals 

• €115,368 for fiscal partners 

Beyond this, different tax rates apply: 

• Bank deposits – 1.44% 

• Investments and other assets – 5.88% (6.04% in 2024) 

• Debts – deductible at 2.62% 

Tax deductions: reduce your taxable income and maximize your return

Certain expenses can be deducted from your taxable income in Box 1, potentially lowering your tax burden. Common deductible costs include: 

• Mortgage interest for homeowners 

• Health costs exceeding a certain threshold 

• Charitable donations 

• Annuity payments 

• Travel expenses related to work 

• Study costs (if incurred before 2022) 

Filing your tax return: the basics 

Types of tax return forms 

• P-form: the standard Dutch income tax return form. 

• M-form: for those who moved to or from the Netherlands. 

• C-form: for non-residents with Dutch income. 

• F-form: for filing taxes on behalf of a deceased individual. 

What is income tax return? 

The tax return, also known as the P-form, determines whether you owe taxes or are entitled to a refund. The Dutch Tax Office often sends a notification letter, but you can file voluntarily as well. 

Key dates to mark 

• Filing period: March 1st – May 1st. 

• Postponement request deadline: May 1st. 

Documents you need 

To ensure a smooth filing process, gather the following: 

• Citizen service number (BSN) 

• Digid login credentials 

• Annual income statement from employer 

• Proof of 30%-ruling (if applicable) 

• Overview of savings and investments as of January 1st of the tax year 

• Woz-value of owned property 

• Loan and debt statements 

• Provisional tax return details 

Tips for a stress-free tax return season 

1. Start early: avoid last-minute stress by preparing in advance. 

2. Ensure all documents are complete and accurate: missing our outdated paperwork can lead to delays, errors, and even fines. 

3. Seek professional advice: navigating the Dutch tax system can be complex, especially for expats. Let a tax advisor handle the process for you, so you can enjoy the spring season worry-free! 

At TaxSavers, we specialize in assisting expats with their Dutch tax returns and beyond. Whether you need help with your deductions or understanding your Dutch tax obligations, we’re here to make the process smooth and hassle-free.