FINANCE

TAX CREDITS AND ALLOWANCES

MORTGAGES AND TAX IMPLICATIONS

• All are entitled to general tax credit based on income and social security element. • Employers use this information for wage withholding taxes. • You can report other allowances when filing your return.

• When arranging a mortgage, look for the following: interest, cost of life insurance, savings plan and investment accounts. • When your interest rate comes up for renewal, it is important to check that it is still competitive.

PARTNERS • Partners usually are taxed individually. • With one working partner, the other is entitled to tax credits as well. • Details are listed on www.belastingdinst.nl • 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.

TAX IMPLICATIONS INCLUDE: • 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.

the specialist in international taxation Serving both businesses and individuals: • Tax advice • Full compliance service including administration • Expat services • Payroll services Find us at www.taxci.nl or meet us at World Trade Center 3rd floor Strawinskylaan 335 Amsterdam The Netherlands

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Groot Handelsgebouw Suite b7.029 Stationsplein 45 Rotterdam The Netherlands

WWW.EXPATFAIR.NL | THE NETHERLANDS | SURVIVAL GUIDE FOR INTERNATIONALS 2020