•• FINANCE ••
Partners
Where possible, partners are taxed individually but, when only one partner works, the other partner is generally entitled to a refund of general tax credit and deductible expenditure can be apportioned to take advantage of tax credits. Please note that the conditions for unmarried couples to qualify as a partner have been changed as of 2011, so check with a tax advisor. 30 percent ruling This is a tax incentive for employees, recruited from abroad who bring specific skills to the Netherlands. It acknowledges the additional expenses incurred by expats (extraterritorial costs) by allowing the employer to grant a tax-free lump sum to cover these costs up to a maximum of 30 percent of the sum of wages and allowances. Applications (completed by both employer and employee) should be made to the Belastingdienst Limburg Kantoor Buitenland in Heerlen. The Dutch government will amend the qualifying conditions for the 30 percent ruling as of January 2012 to be more relevant to the target group. Mortgages and tax implications When arranging a mortgage it is important to look at the whole picture: interest, cost of life insurance, savings plan and investment accounts. If this sounds complicated, it is. If you are intending to sublet, you may need to pay off a substantial part (say 30 percent) of the mortgage to get permission from the lender. When your interest rate comes up for renewal, it is important to check that it is still competitive.
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Tax implications include: • Interest payments are tax-deductible if the property is your primary residence and the loan is used for acquisition or improvement of the house. • There is no capital gains tax in the Netherlands but increases in the value may impact your mortgage relief if and when you use the profits to buy another house in the Netherlands. • Tax is levied on the deemed rental value of the house determined by the local authority. • Expenses in financing the purchase of a house are tax-deductible. Finsens (www.finsens.nl) publish a useful guide to Dutch mortgages in English. Insurance You can arrange insurance through your employer or a private insurance company. (See the national association of insurers at www.verzekeraars.nl.) Aside from obligatory medical insurance (see the Health section), you may need specific insurance if you are self-employed (and pregnant while selfemployed) although there may be an applicable welfare benefit. House and home Homeowners or house insurance is known as woonhuisverzekering. A standard policy covers fire, storm, flood and theft. In terms of flood, there is a distinction between rainwater flooding and damage (covered) and water damage due to a breakdown in the dykes, for example (not covered). Houseboat dwellers come under separate conditions. Contents An annual household contents policy starts at about EUR 20 depending on what is covered. This insurance is known as inboedelverzekering. Higher priced items such as art, jewellery or antiques will need to be individually valued and insured separately.
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