Fiscal partners

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

Are 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.

Read more: Do You Have a Dutch Fiscal Partner?