Progressive Tax Rates in the Netherlands

The Netherlands employs a progressive tax rate system based on income sources, grouped in three categories (so-called boxes): income from work and home ownership, income from company ownership (shareholding) and income from savings and investments. For each category (box) a specific tax rate applies, which may be altered annually. The tax rate for the three boxes are presented below.

Rate for box 1 – Income from work and home ownership

The Box 1 rates for tax residents in 2019 who have not reached the statutory retirement age.

Taxable income not reached the statutory retirement age

Of more than But less than Tax rate
€ 0 € 20,384 36.65 %
€ 20,385 € 34,300 38.10 %
€ 34,301 € 68,507 38.10 %
€ 68,508 and up 51.75 %

The Box 1 rates for tax residents in 2019 who have reached the statutory retirement age.

Taxable income beyond statutory retirement age

Of more than But less than Tax rate
€ 0 € 20,384 18.75 %
€ 20,385 € 34,300 20.20 %
€ 34,301 € 68,507 38.10 %
€ 68,508 and up 51.75 %

Rate Box 2 – Income from a company ownership

If you own substantial interest in a corporation or a co-operation, you may be taxed over any profit taking.  A substantial interest is applicable if you own 5% or more of direct or indirect interest in:

  • shares or options in a company located anywhere in the world
  • profit-sharing certificates of a company located anywhere in the world
  • usufruct or right of pledge of shares or profit-sharing certificates
  • voting rights in a co-operation or society

The profit taking may come in the form of dividend payments or capital gains in the proceeds of shares sale. Tax rate for income from substantial interest is 25 %.

Rate Box 3 – Income from savings and investments

Box 3 tax rate is assessed against a hypothetical assumed yield. Different from previous years, multiple tax rates for Box 3 are designed to tax income from savings and investments. Expats enjoying the 30 percent ruling can opt to be exempted from taxation in box 3 on savings and investments (outside the Netherlands).

Box 3 wealth tax on savings and investments 2019

Total asset value Applied tax rate over total asset value
€ 0 – € 30,360 0 %
€ 30,361 – € 71,650 0.58 %
€ 71,651 – € 989,737 1.34 %
€ 989,738 and over 1.68 %

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