Dutch Tax Position Of The Unemployed Spouse

When your spouse goes to The Netherlands to work and you decide to go come along you may receive tax refunds. Even if you decide not to work you could reclaim Dutch personal income tax if you meet the conditions. It seems strange that you could receive tax refunds even if you have not paid any taxes, however, this is common practice in The Netherlands. In this article I will explain how this works.

How does this work?
Every Dutch resident individual has the right to receive a general tax credit if they have a partner who is sufficiently taxed in The Netherlands. This means that Dutch resident individuals, even an unemployed partner can receive tax refunds. The annual tax refunds can amount to EUR 2,001 depending on your age and/or whether you have children below the age of 5.

Are other tax credits available?
The most common tax deduction in The Netherlands is the deduction for educational expenses. If you or your partner pursues an education which aims at generating income in the future, itemized expenses are deductible. For educational expenses a EUR 500 (2012), EUR 250 (2013) threshold applies and the total amount cannot exceed EUR 15,000, per year per person. Other types of deductions may be available as well. These include medical expenses and charitable contributions. Therefore, it is important to use a comprehensive check-list to determine if you have claimed all possible deductions.

Is it beneficial to file a tax return?
Especially in the year of immigration you will usually be eligible for a substantial Dutch tax refund. This is caused by the difference between the tax on your monthly salary versus your yearly salary. In our experience the Dutch tax refund may amount to thousands of euros. Therefore, it is beneficial to file your Dutch tax return.

Conclusion
DTS specializes in Dutch taxation. As Dutch tax advisors would be happy to help you with filing your Dutch tax return. Connect with me at:  Hendrik Van Duijn

As a tax adviser in Amsterdam, Hendrik focuses on Dutch corporate income tax and Dutch dividend withholding tax. Cross-border investments and mergers and acquisitions, joint ventures and corporate restructuring have Hendrik’s specific interest.

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1 comment on “Dutch Tax Position Of The Unemployed Spouse”

  • I’m an expat as a high skilled migrant. My partner came to Amsterdam with me. Apparently, he can’t find a job in Amsterdam and he is unemployed. Can I apply for tax credit for my unemployed partner?

    Thanks

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