Expatriate tax ebook - The Netherlands

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
There is no capital gains tax in The Netherlands.

Inheritance, estate & gift taxes
A liability to Dutch inheritance and gift tax depends on the individual's Dutch tax residence and domicile position.

Investment income
The expatriate's Dutch tax residency will determine whether someone is subject to tax on savings and investments. Savings and investment income is taxed at 30%. This rate is applied to 4% of the average value of the relevant assets as per January 1 and as per December 31. The effective tax rate is therefore 1.2% of the average value of the assets, less a threshold. The actual savings are not relevant.

Dividends distributed by a corporation in which the shareholder has a so-called substantial interest (i.e., 5% or more of the shares), suffer a 25% flat tax.

Local taxes
There are no local taxes relevant to individuals in The Netherlands, but there may be a requirement to settle council charges, e.g. for water and refuse maintenance.

Real estate tax
In principle the real estate transfer tax in The Netherlands amounts to 6%.

Social security taxes
National Insurance Contributions 2008

Taxable income (€)	employer	employee
1 - 31,589	nil	31.15%
over 31,589	nil	nil

Employee Insurance Contributions 2008

Earnings per year	employer	employee
Disability (WAO)	5.65%	nil
Unemployment (WW)	4.75%	3.5%
Health Insurance (Zvw)	7.2%*

Please note these are average percentages that apply to capped amounts. Many differences and exceptions apply in this area.

* This amount due has to be paid by the employee, however the employer has to compensate the employee.

Stock options
Dutch stock option legislation has changed frequently over the last few years. Under current legislation, stock options in principle are regarded as income from employment when the stock options are exercised. Previous stock option legislation and/or interim provisions might be applicable.

The tax approach of The Netherlands regarding cross border stock option taxation issues, is in line with the official OECD commentary, i.e. an allocation can be applicable.

Wealth tax
There is no wealth tax in The Netherlands.

Other specific taxes
There are no other specific taxes in The Netherlands relating to expatriates.

Information about The Netherlands:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities