What is tax deductible in the Netherlands?

author: Maciej Wawrzyniak27 September 2023
What is tax deductible in the Netherlands?

In the Netherlands, as in Poland, taxpayers are able to deduct various expenses from tax. This has the effect of reducing the amount of tax due, which employers pay in monthly advance payments. So what expenses are eligible for tax deduction in the Netherlands?

Check what you can deduct from your Dutch tax?

Interest on monthly instalments and costs of obtaining a mortgage

If you meet the relevant conditions, you can reduce your income tax by part or all of the interest on your monthly mortgage instalments, as well as the costs associated with obtaining the mortgage. This allows for a higher tax refund from the Netherlands.

Deduction of costs for partner maintenance

That is, alimony paid to a wife or husband. Unfortunately, until 2015, it is not possible to apply deductions for alimony paid for children.

Medical expenses that go beyond the own risk element.

What does this mean in practice? Such expenses include the purchase of medicines, dental treatment, travel costs to the doctor or hospital, and physiotherapy treatments.

In order to be able to deduct such expenses from income, care must be taken to document them correctly and clearly. It is always best to take named invoices or ticket invoices for this purpose. What cannot be deducted from 'medical' expenses for tax purposes in the Netherlands? These include the purchase of glasses, contact lenses and laser eye surgery.

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Educational expenses

Many people choose to attend various courses and trainings to improve their chances on the labour market. Such expenses are as tax-deductible as possible. This could be a course to become a forklift operator, a language course or any other course to improve professional qualifications. In this case too, you must obtain a named invoice for the expenses incurred. On the other hand, expenses for the purchase of computers etc. cannot be deducted from tax, even if they are actually used for learning.

Costs of additional incapacity insurance

Voluntary incapacity insurance is popular in the Netherlands. This can be caused by illness or injury. In such a case, it is the insurer that pays the benefits. The cost of purchasing such a policy can as much as possible be considered as an expense deductible for income tax purposes.

If you have any questions about the above or other tax-deductible expenses in the Netherlands, please do not hesitate to contact us. We will help to dispel any doubts, as well as provide you with the necessary information on how to correctly include such expenses as tax deductible costs.

We have many years of experience in, among other things, tax settlement from the Netherlands, which helps our clients pay the least possible taxes in the Netherlands.

Wondering how much tax refund you will get from the Netherlands? Try out our Dutch tax refund calculator online 2023/2024 and find out what your return will be for the year. It is an extremely easy and intuitive tool to use – regardless of your salary and status, it ensures that every user will receive the most accurate overpayment calculation. Don't wait and make your tax affairs easier today!