In practice, non-resident filings are often more complex than expected, and small errors can easily lead to double taxation or delays.

Understanding Dutch Tax residency

Before diving into the specifics of filing a Dutch income tax return, it is important to understand what constitutes a tax resident in the Netherlands. The Dutch Tax Administration (Belastingdienst) distinguishes between residents and non-residents:

1. Resident Taxpayer: An individual qualifies as a Dutch tax resident based on their lasting tie of a personal nature with the Netherlands. In this respect all personal ties – social, economic or legal – are relevant. Simply registering with a Dutch municipality is not sufficient.
2. Non-Resident Taxpayer: An individual who does not live in the Netherlands but is liable to Dutch income tax due to income from Dutch sources.

From filing to assessment in three steps

Step 1: Do you have to file a tax return?

Use the following flowchart to determine if you should file a tax return:

Step 2: Filing a tax return: what is the timeline?

The tax return for non-residents (a so-called C-form) should be filed annually before 1 July. If you are unable to meet the 1 July deadline, you can request an extension before 1 July, which – if granted – extends the deadline to 1 November. If you have a tax advisor, they must also request an extension before 1 July, in which case the deadline is extended until 1 May of the following year.

Example: The C-form for 2025 must be submitted by 30 June 2026. If you request an extension through a tax advisor, this return must be submitted by 30 April 2027.

Note: Expecting a refund? File the tax return within five years!

Example: Expecting a refund for 2025? File the tax return by 31 December 2030.

Note: If you file your tax return after 1 May, interest on taxes owed will be calculated!

Step 3: How to submit the tax return?

If you received a C-form on paper, you can submit the tax return by mail using this form.

If you have a DigiD (Dutch digital identity) or an EU-approved login key, you can submit the tax return online via “Mijn Belastingdienst“. The tax return can also be submitted using your tax advisor’s tax return software. In that case you won’t need a DigiD or EU-approved login key.

If you do not have a DigiD or an EU-approved login key, you can find information on how to apply for one here.

Specifics of the Dutch income tax return

Dutch sources of income

If you reside outside the Netherlands, you are only liable to taxes in the Netherlands if you have income from Dutch sources. The three most common Dutch sources for non-residents – employment income, pension income and real estate – are briefly explained below.

The Dutch income tax system consists of three boxes. Each source of income can be assigned to only one of these boxes. Each box has its own tax rate. The total tax amount from boxes 1, 2, and 3 constitutes the total income tax payable.

All income earned from work performed in the Netherlands, as well as Dutch old-age state pension and Dutch pension payments you receive are reported in box 1. If you own at least 5% of the shares in a Dutch BV (for example), the income from dividends and capital gains from selling your shares is reported in box 2. If you own a Dutch vacation home or if you rent out a Dutch property (not being your primary residence), you report it in box 3. Your Dutch bank accounts, savings accounts and securities accounts are not subject to taxation in the Netherlands.

With or without a fiscal partner?

Tax residents who are each other’s fiscal partner must file a joint tax return. This allows you to, for example, allocate your joint income to each other in the most tax advantageous way.

Non-residents generally do not have a fiscal partner and must file separate tax returns. However, if you and your partner meet the requirements to be considered “qualifying non-resident taxpayers,” you automatically qualify as each other’s fiscal partner. In this case, you must file a joint tax return.

Qualifying non-resident taxpayer?

Do you live in an EU country, Liechtenstein, Norway, Iceland, Switzerland, or on Bonaire, St. Eustatius, or Saba? And do you pay Dutch wage or income tax on at least 90% of your worldwide income? If yes, you are automatically a qualifying non-resident taxpayer. As a qualifying non-resident taxpayer, you can enjoy the same deductions and tax credits as regular Dutch tax residents.

Worldwide income

Your worldwide income is the combined income of your Dutch income and your foreign income.

Dutch tax on at least 90%

In order to verify whether you (together with your fiscal partner) pay taxes on at least 90% of your worldwide income in the Netherlands, the Dutch Tax Administration requires an income statement from your country of residence. You can find templates for the income statement here. This income statement needs to be stamped and signed by the tax authorities of your country of residence. Subsequently, you must send this form to the Dutch Tax Administration. Your tax return will only be processed by the Dutch Tax Administration after they have received this statement.

Employment income

Income from (self) employment related to work performed in the Netherlands must be declared in the C-form. If there is a tax treaty with the Netherlands, it is possible that some or all of this income is only taxable in the country where you reside. You can indicate this in the C-form. The Dutch Tax Administration will then apply the correct treaty provisions.

Pension

Dutch pension payments and Dutch old-age state pension payments (“AOW”) must be declared in the C-form. If there is a tax treaty with the Netherlands, this treaty will determine in which country this income is taxable. You can indicate this in the C-form. The Dutch Tax Administration will then apply the correct treaty provisions.

Real estate

Do you own a house in the Netherlands? If it is not your primary residence, the house is taxed in box 3. You can deduct the debts on this house in your tax return. Paid mortgage interest is not deductible and the rental income is tax-free.

Do you need to declare this house in your tax return in your country of residence? If there is a tax treaty with the Netherlands, the house is usually only taxed in the Netherlands. In your country of residence, you can generally claim a relief from double taxation.

Box 3 tax – Opgaaf Werkelijk Rendement

Starting tax year 2025, income tax in box 3 is calculated based on the lower of the actual income generated, or the deemed income. These calculations are done in the income tax return itself.

For tax years 2021-2024 the tax returns are calculated on deemed income. If the actual income in any of these years was lower than the deemed income, a voluntary form can be filed: the Opgaaf Werkelijk Rendement. More information can be found here.

National insurance premiums and income-related healthcare insurance contribution

If you do not reside in the Netherlands, you are generally only obligated to pay premiums for Dutch social security and an income-related contribution for the Dutch Health Insurance Act if:

• You work in the Netherlands; or
• You are insured in the Netherlands based on a European regulation on social security or on a social security agreement concluded between the Netherlands and your country of residence.

Common pitfalls and tips for non-residents

Double Taxation Agreements

Check if your home country has a double taxation agreement (DTA) with the Netherlands. DTAs prevent the same income from being taxed in both countries, often allowing for tax relief or exemptions.

Keeping Accurate Records

Maintain detailed records of all Dutch-source income and any related expenses for 5 years. Accurate documentation is crucial for substantiating deductions and addressing any inquiries from the Dutch Tax Authorities.

Seeking Professional Help

If you are unsure how these rules apply to your specific situation, or if your filing involves cross-border employment, pensions or treaty relief, professional advice can help prevent costly mistakes. Feel free to contact me for an initial consultation or a fee quotation.