Living in the Netherlands means having frequent contact with the Belastingdienst. This Dutch tax office is a government department that is part of the Dutch Ministry of Finance and executes custom duties, excise duties, but most above all collection of taxes in the Netherlands.

Due to the Dutch ‘Toeslagen’ (allowances) system, the Dutch tax office also handles the payment of social & healthcare allowances, as well as unemployment benefits. Though not all of the above apply to everyone, as an expat you will surely have to deal with the Belastingdienst with the following:

• Applying for a social services number (BSN)
• Applying for the 30% ruling
• Filing in your annual income tax (return)
• Applying for allowances (we can help you to see for which ones you are qualified) 
• For freelancers and entrepreneurs; file in your quarterly sales tax

Some taxes, especially when owning your own house, are regulated by the local city councils. These are called gemeentebelastingen and consist of taxes on waste, property and tourism. Not everyone will have to deal with all of these, but it is important to be informed on what taxes might apply to you to avoid surprise payments. 

Lastly, as the Netherlands is below sea level and full of rivers (and very clean drinking water), the waterschappen taxes people for flood protection and clean water.

Using DigID

In the Netherlands, taxes are handled almost entirely online. In 2016, the Belastingdienst moved their correspondence from envelopes to mail and what is called DigID. DigID is short for digital identification and is used as an online equivalent of your passport. 

To apply, you set up an account at www.digid.nl/en/. You will be asked to fill in your credentials after which a text message will be sent to your phone. You will then be asked to choose a username and password. A text will again be sent to your telephone number to verify your phone number, a mail will be sent to verify the email address you entered and lastly a letter will be sent to your house that contains a code. Use this code to complete your registration within 20 days.

Once verified, you can use this login for almost anything government related, including taxes. Please keep the login credentials safe and secure.

What other services does DigID give access to?

DigID is a broadly integrated software technique that goes far beyond just your taxes or correspondence with the government departments, Belastingdienst and local city councils. You will be asked for your DigID for all of the following as well:

• Healthcare provides
• Healthcare insurance companies
• Pension Funds
• Contact with the police
• Registering with a bank

As the registration for DigID takes a few days (due to the letter), remember to start applying for it timely to avoid delays in your (financial) administration.

Calling the Belastingdienst

Although you will find that communication with the Belastingdienst is mostly online, you can still call the Belastingdienst when you are in need of clarification. You can call the so-called Belastingtelefoon (tax telephone) for free on 0800 0543 to get information, assistance and answers to tax related questions. When calling from abroad, you can use the number +31 555 385 385.

Belastingtelefoon in another language?

Despite the growing number of foreigners living in the Netherlands, the Belastingtelefoon is only available in Dutch. This has a specific reason as the Dutch tax office decided back in 2008 that offering English led to too many misunderstandings between clients and tax office employees. Some of which had big financial and legal implications.

This doesn’t mean that you can’t try as some of the employees at the helpdesk speak perfect English, but there are no guarantees. You will also have nothing to fall back on when a misunderstanding leads to implications. As an alternative, you can ask We4Expats for advice on tax related issues.

As of January 1, 2025, significant changes have been implemented affecting expats in the Netherlands, particularly concerning the 30% ruling and taxation of worldwide assets.

Changes to the 30% Ruling

The Dutch government has revised the 30% ruling, which previously allowed qualifying expats to receive up to 30% of their salary tax-free for a duration of five years. The updated regulations are as follows:

• 2025 and 2026: The 30% tax-free allowance remains applicable to all eligible employees.

• From January 1, 2027: The tax-free allowance will be reduced to 27% for all incoming employees. Additionally, the salary threshold to qualify for the 30% ruling will increase from €46,107 to €50,436 (2024 figures, subject to indexation). For employees under 30 with a qualifying master’s degree, the threshold will rise from €35,048 to €38,338 (2024 figures, subject to indexation). Transitional rules permit employees who were already benefiting from the 30% ruling as of December 2024 to continue using the previous percentage and salary criteria until their ruling expires.

  Abolition of partial non-residency status

  Previously, expats with the 30% ruling could opt for partial non-residency status, exempting them from taxation on certain worldwide assets. This option has been abolished effective January 1, 2025. For those who had the 30% ruling applied in their December 2023 payroll, transitional arrangements allow the continuation of partial non-residency status in the 2025 and 2026 income tax returns. However, this option will expire permanently starting January 1, 2027.