How much tax will I pay in Netherlands?
What is the Dutch 30% ruling? The 30% ruling is a Dutch tax exemption for employees who were hired abroad to work in the Netherlands. If your situation meets various conditions, your employer can pay 30% of your salary as a tax-free allowance.
What is the Dutch 30% ruling? The 30% ruling is a Dutch tax exemption for employees who were hired abroad to work in the Netherlands. If your situation meets various conditions, your employer can pay 30% of your salary as a tax-free allowance.
Again according to the OECD, the country with the highest national income tax rate is the Netherlands at 52 percent, more than 12 percentage points higher than the U.S. top federal individual income rate of 39.6 percent.
Wage tax, or income tax, is a progressive system in the Netherlands. In 2022, the low-income tax rate starts at 2.3% and goes up to 52% for high earners. Income tax in the Netherlands is the highest in the world. But because it funds so many beneficial social programs, the Dutch don't seem to mind.
| Tax bracket 1 | Tax bracket 2 | |
|---|---|---|
| 2022 | 37.07% (until €69.399) | 49.50% (from €69.399) |
| 2023 | 36.93% (until €73.031) | 49.50% (from €73.031) |
A non-resident individual receiving income from employment actually carried on in the Netherlands is subject to Dutch income tax. In certain situations involving multinational companies, the so-called 60-days rule applies.
The Netherlands has a progressive tax system with a combined top rate on personal income of 49.5 percent. The capital gains rate of 32 percent is significantly above the OECD average of 19.3 percent. Companies are limited in the time period in which they can use net operating losses to offset future profits.
The Netherlands has a comprehensive system for taxing various types of income, ensuring that all residents and non-residents earning income within the country are subject to taxation.
Average Salary in the Netherlands 2023
According to the Netherlands Bureau for Economic Policy Analysis, the average gross income for a person working in the Netherlands in 2023 is €34,260 euros per year or €2,855 per month.
As the below OECD numbers beautifully illustrate, the American median wage is indeed higher, because Americans work much more than people in the Netherlands.
Is 100k euro a good salary in Netherlands?
If you earn a combined income of € 100k Euro a year you are both earning 25% above the national average, which normally would provide you with a comfortable but not extravagant lifestyle, but here is the kicker.
Yes 3000 Euros would make you live confortable. There is one thing that can make quite a difference though, it is that many Dutch companies provide a lease car. Driving a car is very expensive in the Netherlands, and this makes a huge difference.
Is it usually paid 12 or 14 salaries in the Netherlands? €4000,- monthly net is a very good salary. Standard will be an additional 1 month's holiday pay, usually paid in april or may and often what is called a “thirteenth month”, an extra month's salary, paid with december's salary.
The 30% tax ruling is a tax advantage for highly skilled migrants in the Netherlands. An employer can pay up to 30% of the salary of an expat employee with the 30% status free of tax. An enormous tax saving for both employee and employer.
Although salaries are relatively high in the Netherlands, income tax levels are correspondingly high and they depend on your household and work income. Estimating roughly – an employee who earns €2500 gross should take home around €2000 net.
60k is about double the income of an average Amsterdam citizin, especially with the tax benefits for expats. If that is not enough… DON'T come. 6 years experience is still quite junior so you could earn more in coming years if you develop yourself too!
Why are the Netherlands taxes so high? European countries have notoriously high tax rates – but the advantages and benefits residents of these countries receive usually make the extra costs worth it. The Dutch tax rate covers several social programmes, including unemployment, health insurance, sickness benefits, etc.
The 30% reimbursem*nt ruling (also known as the 30% facility) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax-free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax.
The Netherlands does not have a single-payer healthcare system. Instead, its universal healthcare system is achieved through compulsory basic private insurance that is regulated and subsidized by the government. The country began its national health insurance program in 1941.
1. Ivory Coast. The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.
What is a good salary in the Netherlands?
Although cost of living varies considerably due to each individual's personal preferences and situation, according to our estimations a single person would need a net salary of €1,900 to live comfortably in most Dutch cities while a family of four would typically require a net salary of at least €4,800 per month.
The Netherlands has had steady natural gas resources since 1959, when a wellspring was discovered. Currently the Netherlands accounts for more than 25% of all natural gas reserves in the European Union. Over the following decades, the sale of natural gas generated a significant rise in revenue for the Netherlands.
Residence and Work Permits
In order to reside in The Netherlands, one must be in possession of a valid residence permit. This must be obtained from the Dutch Immigration authorities, the Immigratie en Naturalisatiedienst otherwise known as the IND. Please see https://ind.nl/en for further information.
'For tax specialists, a tax haven means palm trees, sun, zero tax and no exchange of information. The Netherlands is not like that. But if you look at it from a different perspective, the Netherlands is a tax haven for large companies.
| Taxable Income (EUR) | 2022 Income Tax Rate |
|---|---|
| 0 – 35,472 | 9.42% |
| 35,472 – 69,398 | 37.07% |
| 69,398+ | 49.50% |
References
- https://expatwell.com/netherlands/costofliving/
- https://www.iamexpat.nl/career/employment-news/15-surprising-facts-about-getting-job-netherlands
- https://nltimes.nl/2022/01/12/amsterdams-apartment-rent-third-highest-europe
- https://news.ycombinator.com/item?id=16490462
- https://www.quora.com/Is-60k-Euro-per-annum-a-good-salary-in-Amsterdam-for-a-software-developer-with-6-years-experience-Also-I-earn-22-lakhs-per-annum-in-India-Delhi-is-it-worth-making-a-move
- https://www.taxesforexpats.com/country-guides/netherlands/us-tax-preparation-in-netherlands.html
- https://www.iamexpat.nl/career/working-in-the-netherlands/salary-payslip-dutch-minimum-wage
- https://visitukraine.today/blog/1089/cost-of-living-in-the-netherlands-prices-for-renting-an-apartment-utilities-food
- https://www.government.nl/topics/foreign-citizens-working-in-the-netherlands/question-and-answer/what-permits-do-foreign-workers-need
- https://taxfoundation.org/location/netherlands/
- https://www.expatriatehealthcare.com/the-pros-and-cons-of-moving-to-the-netherlands/
- https://taxsavers.nl/dutch-tax-system/2022-2023/
- https://www.quora.com/Is-3000%E2%82%AC-month-a-good-salary-to-live-in-a-major-Netherlands-city-except-for-Amsterdam
- https://www.jobsinnetwork.com/blog/blog-article/5-best-cities-in-the-netherlands-for-work
- https://jimble.nl/blog/expats/best-cities-to-work-in-the-netherlands/
- https://www.wearedevelopers.com/magazine/netherlands-average-salary
- https://www.schumachercargo.com/pros-cons-living-in-netherlands/
- https://companiesmarketcap.com/netherlands/largest-companies-by-number-of-employees-in-the-netherlands/
- https://www.greenbacktaxservices.com/country-guide/expat-taxes-for-netherlands/
- https://www.universiteitleiden.nl/en/in-the-media/2022/01/is-the-netherlands-a-tax-haven-or-not
- https://adamsrecruitment.com/blog/salaries-in-the-netherlands-what-should-you-be-earning/
- https://nomadcapitalist.com/finance/countries-with-the-highest-tax-rates/
- https://www.quora.com/Is-80k-Euro-a-good-salary-for-an-expat-in-the-Netherlands-North-Brabant-with-a-family-of-3-How-much-would-a-rental-flat-with-2-rooms-cost
- https://www.crfb.org/blogs/us-highest-taxed-nation-world
- https://www.uva.nl/en/education/practical-information/living-in-amsterdam/safety/safety.html
- https://www.quora.com/Is-4-000-EUR-a-good-salary-to-live-in-the-Netherlands
- https://www.jobinthenetherlands.com/best-paid-jobs-in-the-netherlands/
- https://www.iamexpat.nl/expat-info/dutch-expat-news/dutch-town-dalfsen-happiest-place-netherlands-ad-reports
- https://www.expatica.com/nl/finance/taxes/the-dutch-30-ruling-explained-101641/
- https://www.safeguardglobal.com/resources/payroll-tax-netherlands/
- https://www.quora.com/Why-are-American-wages-so-much-higher-than-Dutch-wages
- https://www.cbs.nl/en-gb/news/2023/35/more-killings-in-2022-most-victims-in-rotterdam
- https://www.blueumbrella.nl/30-tax-ruling
- https://gdx.in/job-opportunities-in-netherlands
- https://www.quora.com/Is-40k-year-net-a-good-salary-to-live-in-Amsterdam-for-a-young-couple
- https://www.octagonpeople.com/faq-payroll-tax-employment/
- https://www.expat.hsbc.com/expat-explorer/expat-guides/netherlands/tax-in-netherlands/
- https://www.prospects.ac.uk/jobs-and-work-experience/working-abroad/work-in-the-netherlands
- https://www.internations.org/netherlands-expats/guide/working
- https://nl.usembassy.gov/u-s-citizen-services/local-resources-of-u-s-citizens/living-in-the-netherlands/
- https://www.iamsterdam.com/en/live-work-study/living/official-procedures/30-tax-ruling
- https://www.iamexpat.nl/expat-info/dutch-expat-news/number-millionaires-netherlands-rises-7th-year-row
- https://en.wikipedia.org/wiki/Economy_of_the_Netherlands
- https://www.internationalinsurance.com/health/systems/netherlands/
- https://www.quora.com/How-decent-are-100-000-Euros-gross-per-year-salary-in-Amsterdam-for-a-couple
- https://www.wearedevelopers.com/magazine/best-companies-in-the-netherlands
