If 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.
Read more: Pros and Cons of Dutch Fiscal Partnership