Tax season has started: All you need to know about your tax return

In this article, Erik Jan Peffer from Taxt explains important information about your Dutch tax return, and all the information that is especially relevant to you as an expat in the Netherlands.

Happy tax season!

The Dutch tax season officially starts on March 1, and the standard filing deadline for an income tax return is May 1. Normally you will be filing for the previous calendar year, so in 2025 you file based on your 2024 income. If you migrated from or to the Netherlands during 2024, the standard filing deadline is extended to July 1, 2025.

Do you need to file your taxes?

The Dutch Tax administration can issue a request to file your tax return via email or regular mail (the famous Dutch blue envelopes) which says, "U moet een aangifte inkomstenbelasting doen" (You need to file your income tax return) - but where to start?

First of all, when is a person obligated to submit an income tax return? This is mandatory when:

• A blue envelope is received from the Dutch Tax Administration requesting you to file a tax return, or
• A taxpayer has to pay income taxes, or
• A tax refund can be claimed (not mandatory but advisable).

If you have to or want to file your income taxes in the Netherlands, this can be done by yourself or via a professional tax advisor. Here’s a basic instruction on how to file your income taxes in the Netherlands: 

1.  Create or access your DigiD

A DigiD is your digital identification for interacting with the Dutch government.

• If you don’t have a DigiD, apply for one at digid.nl.

2. Gather all the required documents

Ensure you have the following documents ready:

• Annual income statement (jaaropgave) from your employer(s). If you changed jobs in 2024, you will need one from each employer.
• Details of any other income, assets or deductions.
• Information on mortgages, if applicable.
• Records of deductible expenses, such as healthcare costs or charitable donations.

3. Log in to the tax authority’s portal (Belastingdienst)

Access the tax filing system via Mijn Belastingdienst. Log in with your DigiD.

4.  Add additional information

If you have any income from abroad, income from freelance work, special tax deductions or financial details such as the value of your depository receipts to shares, enter them manually.

5.  Submit your tax return

Submit your return before the May 1 (or July 1) deadline for the previous tax year, or request an extension.

6.  Seek professional help if needed

Tax laws in the Netherlands can be complex, especially for expats. If you have questions about double taxation treaties, non-resident tax status or specific tax deductions, consider consulting a tax advisor.

The three boxes

Income taxes are levied in three boxes in the Netherlands.

Box 1: 36,97 percent - 49,5 percent tax rate

In Box 1, your income from (self-) employment, (primary) home ownership, periodic payments and other personal income is taxed. Taxes are progressive which means that the more you earn, the more you pay. The highest tax rate is 49,5 percent and starts at 75.518 euros for the 2024 tax year. 

There are various deductibles that can be applied to reduce the taxable income in Box 1. The most common deductions in this box are:

• Mortgage interest on the mortgage for a primary residency
• Medical expenses not covered by your insurance company
• Paid partner alimony
• Entrepreneurial deductions (such as general self-employment deduction, the starters deduction or the middle and small business profit exemption)

Box 2: 24,5 percent - 33 percent tax rate

In Box 2, income from substantial shareholdings in a company (inkomen uit aanmerkelijk belang) is taxed. An individual is considered to have a substantial shareholding if they, either personally or with their tax partner, directly or indirectly hold at least five percent of a certain class of shares in the share capital in a limited liability company.

Dividends paid from a substantial shareholding are the most common Box 2 income. The other is capital gains arising from the sale of shares of a substantial shareholding.

Box 3: 36 percent tax rate

In Box 3, income from savings and investments is taxed (in other words, your wealth). The taxable income is not calculated based on the actual realised returns. Instead, it is calculated over a fictional presumed return on investment determined by a fixed forfeit. The tax is calculated over the fictional returns from various assets, including savings accounts, investments and second homes. The current system is called the savings variant.

For the tax year 2024, the prescribed fictional income percentages used for the three categories in which Box 3 income is taxed are as follows:

• 1,44 percent fictional return on bank accounts
• 6,04 percent for investments and other assets
• 2,61 percent (negative return) for debts

The fictional income is calculated over the value of the asset per January 1 of the applicable tax year.

Box 3 income from savings and investments is only taxable if the net difference between assets and debts exceed the tax-free thresholds, which is 57.000 euros per person, or 114.000 euros for tax partners, for the 2024 tax year.

Box 3: Recent updates from the Supreme Court

Box 3 has been (and still is) the subject of much debate in the Netherlands. In late 2021, the Dutch Supreme Court ruled in the "Christmas ruling" that the Box 3 levy violates the European Convention on Human Rights (ECHR). As a result of this ruling, the Box 3 system was subsequently adjusted to the so-called savings variant.

Effective as of 2023, the tax levied in Box 3 was done on a flat rate of return divided into the aforementioned (bank accounts or investments and other assets and debts) categories.

On June 6th of 2024, the Supreme Court decided that the savings variant also violates the ECHR and tax payers should be able to appeal their Box 3 taxes if the actual returns on their assets are lower than the fictional income percentages from the savings variant.

Appealing your payable Box 3 taxes based on the June 6, 2024 Court decision will be possible from mid-2025. Please note that an appeal is only possible against a final income tax assessment and only within six weeks after the assessment is given. Keep an eye out for post from the Tax Administration and don’t miss any appealing deadlines!

A new Box 3 system where taxation will only be based on the actual returns from your assets and debts is announced and will likely come into force from 2028.

At Taxt, they have tried to make the process of filing your Dutch income tax return and meeting the compliance requirements as smooth and easy as possible. You can reach them by email at taxteam@taxt.nl or by phone at +31 20 820 0 810 and they will gladly assist you