Quick answer
Dutch residents pay tax on worldwide income in three boxes. In 2026, work income is taxed at 35.75% to 49.50%, investments at 36% of a deemed return, and 5%+ company stakes at 24.5% or 31%. Corporate tax is 19% up to EUR 200,000, then 25.8%. VAT is 21%. Newcomers may get the 30% ruling.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Check my tax setup →You are thinking about living or working in the Netherlands, or you already do and want the full picture. The Dutch system is unusual: income is split into "boxes", and investments are taxed on a return you may never have made. This page gives you every main rule for 2026 in one place, with links to the detailed guides.
Netherlands tax landscape in 2026: the key figures
| Item | Rule (2026) |
|---|---|
| Tax residence | Facts and circumstances test; no fixed day count |
| Scope for residents | Worldwide income |
| Box 1 – work and home | 35.75% up to EUR 38,883; 37.56% up to EUR 78,426; 49.50% above |
| Box 2 – substantial interest (5%+) | 24.5% up to EUR 68,843; 31% above |
| Box 3 – savings and investments | 36% on a deemed return |
| Corporate income tax | 19% up to EUR 200,000; 25.8% above |
| VAT | 21% standard; 9% reduced; 0% |
| Expat incentive | 30% ruling: up to 30% of salary tax-free; 27% from 2027 |
Is this guide for you?
Read on if you…
- are considering a move to the Netherlands for a job or business;
- want to understand the box system before your first Dutch return;
- run a business and need the corporate and VAT basics.
Probably not your case if you…
- only visit the Netherlands for short business trips and live elsewhere;
- need advice on a specific Dutch tax dispute (see a local adviser).
How does the Dutch tax system work?
Residence: facts and circumstances
The Netherlands has no 183-day rule. The Belastingdienst (Dutch Tax and Customs Administration) looks at your durable personal ties – basically where your life is: home, partner, kids, work, registration and social life.
Registering in the BRP (municipal personal records database) is a strong signal, but not decisive alone. If two countries claim you, the tax treaty tie-breaker rules decide. The full process is in obtaining Dutch tax residency.
Worldwide taxation
Residents are taxed on worldwide income. Non-residents are taxed only on Dutch-source income, such as Dutch salary, Dutch property and a stake in a Dutch company. Double tax is relieved through treaties or the unilateral decree for avoiding double taxation.
The three boxes
Each type of income goes into one box, with its own rate. You cannot offset a loss in one box against income in another.
- Box 1: salary, business profit, pensions and your own home.
- Box 2: dividends and sale gains on a substantial interest – owning 5% or more of a company.
- Box 3: savings and investments, taxed on a deemed return of your net wealth on 1 January.
The tax year is the calendar year. You normally file your return by 1 May of the following year.
What are the main taxes in the Netherlands?
| Tax | 2026 rate or rule | Who pays |
|---|---|---|
| Income tax and national insurance (Box 1) | 35.75% / 37.56% / 49.50% | Residents on worldwide income |
| National insurance (inside first bracket) | 27.65% (AOW 17.90%, Anw 0.10%, Wlz 9.65%) up to EUR 38,883 | Residents under state pension age |
| Health insurance contribution (Zvw) | Income-related, paid by employer or self-employed | Employees and self-employed |
| Capital gains | No separate tax; Box 3 deemed return or Box 2 at 24.5%/31% | Investors and shareholders |
| Corporate income tax | 19% / 25.8% | Dutch companies (BV, NV) |
| Dividend withholding tax | 15% | Dutch companies paying dividends |
| VAT | 21% / 9% / 0% | Businesses selling goods and services |
| Inheritance and gift tax | 10% to 40%, by relationship and amount | Heirs of Dutch residents |
| Wealth tax | None as such; Box 3 works like one | – |
| Property transfer tax | 2% own home; 8% other housing; 10.4% non-residential | Property buyers |
The first bracket rate is mostly social security. If you are under state pension age, 27.65 points of the 35.75% are national insurance contributions. That matters if you are covered by another country's social security under an EU or treaty rule.
Other specific taxes – energy tax, car taxes, transfer tax details – are covered in specific taxes in the Netherlands.
Capital gains and investments
For most investors there is no capital gains tax on a sale. Instead, Box 3 taxes a deemed return of 6.00% on shares, crypto and second homes, and about 1.28% on savings, at 36%. A tax on actual returns is planned from 2028. Details in capital gains tax in the Netherlands and crypto taxes in the Netherlands.
Deductions and credits
Everyone gets a general tax credit, and workers get a labour tax credit. Both shrink as income rises. Mortgage interest on your own home is deductible at a maximum of 37.56%. More in personal tax deductions and benefits in the Netherlands.
What special regimes exist for newcomers?
The main one is the 30% ruling. Employees recruited from abroad with scarce expertise can receive up to 30% of salary tax-free for five years. In 2026 your taxable salary must exceed about EUR 48,013. From 2027 the maximum falls to 27%.
The ruling is for employees only. Freelancers get the entrepreneur's deductions instead. There is no digital nomad visa. Partial non-resident status for Box 3 was abolished from 2025, with a transition until the end of 2026.
Full details in tax incentives for expats and digital nomads in the Netherlands.
Arriving with assets
When you arrive, a Box 2 holding gets a step-up to market value. Gains built up abroad before your move are not taxed. Box 3 starts on the first 1 January you are resident – or on your arrival date, in the year of your move.
What happens when you move in or out?
Moving in
- Secure your right to live and work (EU citizens move freely; others need a permit from the IND).
- Register in the BRP and get your BSN (citizen service number).
- Take out Dutch basic health insurance – it is mandatory.
- If eligible, apply for the 30% ruling within four months of starting work.
- File a migration return (M form) for your first year.
Moving out
Deregister from the BRP and file an M form for the year you leave. If you hold 5% or more of a company, you receive a protective assessment (conserverende aanslag). It is an exit tax on the gain so far, deferred until you sell or take large dividends. Pension rights and annuities get similar treatment. See ceasing your Dutch tax residency.
How are businesses taxed?
You can work as a sole proprietor (eenmanszaak) or set up a private limited company (BV).
- Sole proprietor: profit is taxed in Box 1. If you work at least 1,225 hours a year, you get the self-employed deduction (EUR 1,200 in 2026) and the SME profit exemption.
- BV: the company pays 19% or 25.8% corporate tax. As director-shareholder you must pay yourself a customary salary, and dividends are taxed in Box 2.
VAT registration is required for most businesses. The small business scheme (KOR) exempts you from charging VAT below EUR 20,000 Dutch turnover. Records must be kept for 7 years.
Compare structures in legal forms of business in the Netherlands and costs in business expenses in the Netherlands.
Compliance and enforcement
The tax office receives foreign bank data through CRS and crypto data through DAC8 from 2026. Undeclared foreign income can be reassessed for 12 years and fined up to 300%. See tax fraud regulations in the Netherlands.
Example – Sofia, Brazilian product manager moving to Amsterdam
Sofia joins a Dutch fintech in 2026 at EUR 90,000 gross and qualifies for the 30% ruling. EUR 27,000 is tax-free, so Box 1 tax applies to EUR 63,000 – roughly EUR 23,000 before credits. She keeps EUR 40,000 in savings, below the Box 3 allowance, so no Box 3 tax. A small freelance side project stays in Box 1 as other income.
Sofia's Dutch setup has three moving parts. Yours probably does too.
Get your tax setup checked before you move, so the boxes work for you.
Check my tax setup →Common mistakes (and what they cost)
- Relying on a 183-day count → you become Dutch resident earlier than planned and owe tax on worldwide income.
- Missing the 30% ruling deadline → months of tax-free salary lost.
- Forgetting foreign assets in Box 3 → back tax for up to 12 years plus fines.
- Leaving with a 5%+ company stake unplanned → a protective exit assessment that follows you abroad.
- Running a BV without customary salary → the tax office adds a deemed salary and taxes it in Box 1.
Frequently asked questions
What are the income tax rates in the Netherlands in 2026?
For Box 1 income below state pension age, 35.75% up to EUR 38,883, 37.56% up to EUR 78,426, and 49.50% above. The first bracket includes national insurance contributions. Box 2 income is taxed at 24.5% or 31%, and Box 3 at 36% of a deemed return.
How do I become a Dutch tax resident?
There is no fixed day count. The Belastingdienst looks at all your circumstances: where your home, family, work and social ties are. Registering in the BRP is an important indicator. If you are also resident elsewhere, the tax treaty tie-breaker decides which country can tax you as a resident.
Does the Netherlands have a wealth tax?
Not formally. But Box 3 works much like one. It taxes a deemed return on your net savings and investments above an allowance of about EUR 57,684 per person, at 36%. In practice, that is roughly 2.16% of your invested wealth each year.
What is the corporate tax rate in the Netherlands?
In 2026, Dutch companies pay 19% on the first EUR 200,000 of taxable profit and 25.8% on the rest. Dividends paid to shareholders are subject to 15% withholding tax. Director-shareholders must take a customary salary, which is taxed in Box 1.
Is the Netherlands good for digital nomads?
It depends. There is no digital nomad visa, and the box system can tax investments heavily. For employees recruited from abroad, the 30% ruling makes it attractive. Freelancers face full Box 1 rates with modest deductions, so it works best if the Netherlands is your real base.
When is the Dutch tax return due?
The income tax return for 2026 is normally due by 1 May 2027. You can request an extension. In your arrival or departure year, you file a special M form instead of the standard return. Businesses file VAT returns monthly or quarterly.
Netherlands tax guides
- Obtaining Dutch tax residency – how residence is decided and how to register.
- Ceasing Dutch tax residency – deregistering and the Box 2 exit assessment.
- Capital gains tax in the Netherlands – Box 3, Box 2 and what you pay by asset type.
- Crypto taxes in the Netherlands – how crypto is valued and taxed in Box 3.
- Personal tax deductions and benefits – credits, mortgage interest and allowances.
- Tax incentives for expats and digital nomads – the 30% ruling and freelancer options.
- Legal forms of business – sole proprietor, partnership or BV.
- Business expenses – what you can deduct and what you can't.
- Specific taxes – transfer tax, energy tax and other levies.
- Tax fraud regulations – fines, look-back periods and voluntary disclosure.
Related guides
- Germany tax landscape overview
- Austria tax landscape overview
- Switzerland tax landscape overview
- The 30% ruling explained
- Moving to the Netherlands
- All country tax guides
Sources
- Belastingdienst – Dutch Tax and Customs Administration
- Government of the Netherlands – Income tax
- Wetten.overheid.nl – Dutch legislation portal
- Business.gov.nl – Government information for entrepreneurs
- IND – Immigration and Naturalisation Service
- OECD – Netherlands
This guide is general information, not personalised tax advice. See how we research and review.
Check your Dutch tax setup in one go
Residence, 30% ruling, Box 3 and business structure reviewed together.
Start with Heavnn →
