MORTGAGES AND TAX IMPLICATIONS
TAX CREDITS AND ALLOWANCES
• All are entitled to general tax credit based on income and • When arranging a mortgage, look for the following: interest, cost of life insurance, savings plan and social security element. investment accounts. • Employers use this information for wage • When your interest rate comes up for renewal, it is withholding taxes. important to check that it is still competitive. • You can report other allowances when filing your return. PARTNERS
TAX IMPLICATIONS INCLUDE:
• Partners usually are taxed individually. • With one working partner, the other is entitled to tax credits as well. • Details are listed on www.belastingdienst.nl
• Interest payments are tax-deductible if the property is your primary residence and the loan is used for acquisition 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 (WOZ) determined by the local authority. Expenses in financing the purchase of a house are tax-deductible. Remark about WOZ: value immovable property has nothing to do with the value in rented rate. Value in rented state is also much lower.
30 PERCENT RULING • This is the well-known tax incentive for employees recruited from abroad. • The ruling gives employer sum to cover up to 30 percent of sum of wages and allowances incurred by expat. • Applications (completed by both employer and employee) should be made to the Belastingdienst Limburg Kantoor Buitenland in Heerlen.
We combine Dutch law expertise for businesses and individuals for complex cross-border immigration and tax matters as well as your one-stop shop for all related legal, notarial and accounting matters. World Trade Center The Hague T + 31 70 3856710 - firstname.lastname@example.org
w w w . m ig r a n t ic . c o m SURVIVAL GUIDE FOR INTERNATIONALS 2021 • THE NETHERLANDS • WWW.EXPATFAIR.NL