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How to Reduce Your Tax Bill in Netherlands

Written by: Bridgewest

How-to-Reduce-Your-Tax-Bill-in-Netherlands.jpgLike many other countries, the Netherlands does not enforce taxes on royalties and interests, making the business environment in the country quite attractive from an investment point of view. But there are also many benefits for entrepreneurs from abroad related to the tax breaks for all sorts of businesses. We remind that our Dutch accountants can provide you with complete information about the taxation system in the country and about how to reduce your tax bills in the Netherlands.

Tax breaks for businessmen in the Netherlands

One of the most preferred entities in the Netherlands is the sole proprietorship which is set up by foreign citizens from all over the world. For a fruitful economy in the country, the authorities pay complete attention to the small business established in the Netherlands and many tax exemptions were implemented in this sector. For instance, entrepreneurs who are involved in more than 1,225 working hours per year on business related duties can avoid a tax of about EUR 7,300 which was enforced for all self-employees. Besides that, as a new business registered in the Netherlands, you are exempt from a tax of approximately EUR 2,123.
The tax on profits is reduced by 14% for all new sole proprietorships in the Netherlands, and giving the deductions mentioned above, it is good to know that numerous small entrepreneurs choose to begin their activities in different domains in the country for all sorts of benefits. Our Dutch accounting firm is ready to offer comprehensive information about the business taxes in the Netherlands.

Tax deductions in the real estate sector in the Netherlands

In the Netherlands, the mortgage interests are deductible, if you have a house and you live in it. As for the condominiums used as holiday houses or for rental purposes, the taxes are applied as for all sorts of assets in the Netherlands. People who own apartments or houses in the country and are overseas citizens are subject to the double taxation agreements signed by the Netherlands.

Tax deductions for partners in the Netherlands 

People married in the Netherlands and living in the same house or not are considered fiscal partners, where children, joint pension schemes or home ownership are registered on both individuals. The fiscal partnership in the Netherlands was adopted to reduce the taxes applied to individuals in the country. For example, the inheritance tax may vary if you make proof of your legal partnership in the Netherlands. This is an interesting measure applicable for migrants who registered in the Netherlands as a couple in the same day.
You are invited to solicit help and guidance from our accounting firm in the Netherlands in tax related matters. Please feel free to get in touch with us.


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