Tax on Savings and Stocks in the Netherlands

Coins with jars for storage in front of a houseIn the Netherlands, there is officially no wealth tax, but there is a tax on investment income, known as the “savings and investment tax”. You pay a levy on the return on your savings and investments. This tax is detailed in Box 3 of the income tax. You pay tax on the return of assets, which is reduced by the return on debts. The primary residence is not included, but a second home or vacation home is. The levy is not paid on the actual returns made; instead, the government determines what returns you should have made (assumed returns).

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What Are Capital Import Neutrality and Capital Export Neutrality?

Capital Import Neutrality and Capital Export NeutralityCapital Import Neutrality (CIN) and Capital Export Neutrality (CEN) are concepts from international tax law that help determine how investments across borders are taxed. These concepts influence the decisions of companies and investors on where to allocate their funds, and affect countries’ influence on their own economic and social policies. If countries follow capital import neutrality, they aim to attract investments by treating foreign companies the same as domestic ones. If they follow capital export neutrality, they try not to discourage their own companies from investing abroad through taxation.

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Declaring foreign property on Dutch tax return

Beautiful houseAnyone living in the Netherlands and owning real estate in countries such as France, Turkey, Morocco, Suriname, or any other foreign country, must declare this on their Dutch tax return. By correctly completing the declaration, you can benefit from deductions in the Netherlands due to the taxes you already pay abroad. Assets like a residence, vacation home, plot of land, building, garage, or other real estate in countries like Spain, Greece, Germany, Belgium, Indonesia, and any other foreign country fall under the Dutch box 3. The value of these assets must be reported in the annual income tax declaration in the Netherlands. This refers to the market value of the real estate when it is unoccupied.

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Buying a Car Might Be Your Worst Investment Ever

Man standing next to his newly purchased Mercedes carInvesting is all about expecting a return, both in time and money. We invest our time in activities we find valuable or that we believe will benefit us in the long run. Similarly, we invest our money expecting to gain from it eventually. Despite the benefit of mobility, purchasing a car consumes a significant portion of our savings. Additionally, a car is one of the most rapidly depreciating investments, especially when looking at its residual value. A car stands as one of the poorest investments. Yet, for many, the convenience and independence a car offers outweigh its financial downsides.

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Is ChatGPT Conscious?

Two robots exhibiting signs of self-awarenessNow that Artificial Intelligence (AI) has achieved an unprecedented level of complexity, the technology behind ChatGPT prompts us to ponder what machines can truly perceive, understand, or “know.” Is it possible for a model as advanced as ChatGPT to possess a form of consciousness? Systems like ChatGPT, capable of replicating human language and engaging in conversations that mimic human interaction, might reshape our understanding of consciousness. How do these machines compare to the workings of the human brain? Let’s delve deeper into these questions, as well as the concepts of panpsychism, emergent consciousness, functional and instrumental consciousness. Let’s explore the boundary between human and machine.

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How to Benefit and Apply for Dutch Income Averaging?

Three blue envelopesDo you earn a lot in one year and somewhat less in another? Up to and including the tax year of 2024, there’s a Dutch regulation specifically designed for this scenario. This rule is called the middelingsregeling (income averaging scheme), and it can sometimes offer substantial financial benefits. But how does this averaging work precisely, and how can you take advantage of it? If your income fluctuates, the income averaging scheme (middelingsregeling) can offer you benefits. The last period you can average includes the years 2022, 2023, and 2024. After that, it won’t be possible.

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Pros and Cons of Dutch Fiscal Partnership

A couple walkingIf you are fiscal partners with each other in the Netherlands, this can affect your tax return and the amount of your benefits (Toeslagen). It’s important to understand that you can only have one fiscal partner at a time. But what are the advantages and disadvantages of a fiscal partnership? Since 2011, fiscal partnership is no longer a choice – the Tax Authority (Belastingdienst) determines based on certain conditions whether you are fiscal partner or not. If you meet one of these conditions, you are fiscal partners. In most cases, this works to your advantage and allows you to pay less tax.

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Do You Have a Dutch Fiscal Partner?

A couple walking away while a man walks in the opposite directionAre you each other’s fiscal partner for the Dutch Income Tax (Inkomstenbelasting) and hence when filing your tax return? You can only have 1 fiscal partner at a time. In this article, you can easily see if you’re each other’s fiscal partner in the Netherlands. Being fiscal partners has its advantages. For example, you can allocate certain tax deductions like healthcare expenses, educational costs, and charitable donations between you. This has consequences for your tax return, but also the level of income, the threshold amounts, potential tax credits (heffingskortingen), and possible benefits.

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Who is your benefit partner in the Netherlands?

A cheerful elderly couple smilingThe benefit partner (toeslagpartner) is the person with whom you apply for a benefit, such as the healthcare benefit (zorgtoeslag) or the rent benefit (huurtoeslag). It’s not possible to have multiple benefit partners. Spouses or registered partners are automatically each other’s benefit partners. The concept of benefit partner is broader than the term partner. If you’re not married and there’s no registered partnership, you can still have a benefit partner. For instance, adult children, siblings, parents, and friends can also be your benefit partner.

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Who Benefits from the New Dutch Kleineondernemersregeling?

A small business owner with a stall selling itemsFrom January 1, 2020, a new small business scheme (KOR, kleineondernemersregeling) is in effect in the Netherlands: the exemption from turnover tax (omzetbelasting). This scheme can be beneficial in certain situations. If your revenue is less than 20,000 euros per year, you can choose to enroll in the new scheme. So, it’s a choice; you can also decide not to enroll. If you opt for the new scheme, there’s no need to file a VAT return or remit any VAT. It’s important to weigh the pros and cons before making a decision. Understanding the specifics can help you maximize your benefits.

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