The Netherlands is famous for its social security (sociaal vangnet), which provides financial support for people with a low income. We also have amazing roads, great infrastructure, and many other benefits.
But… the money for that has to come from somewhere. In our case, Dutch tax rates can be considered quite high.
You may find it difficult to accept the high income tax and BTW, especially if you’re not used to it. However, there are some tax benefits that may apply to you! In this blog, we’ll tell you about one of them: Extra-Territorial Tax Discount.
What is an Extra-Territorial tax discount?
The Extra-Territorial tax discount (ET discount) helps people with homes in multiple countries to decrease their monthly costs. You can apply for this discount if you currently live in The Netherlands and also have a home in another country. This can save you up to €150 NET per month!
Requirements for an Extra-Territorial tax discount
• You rent a home in The Netherlands and also rent or own a house abroad
• You don’t own a house in The Netherlands
• Your close family (spouse, children) lives abroad
• Your close family (spouse, children) does not live in The Netherlands
• Your income (from NL and abroad) is taxed abroad
How to apply for an Extra-Territorial tax discount
The ET discount can be difficult to apply for – especially if you don’t know the Dutch language and customs. That’s why we help our employees by doing the application for them. Start working with us and we’ll ask you for documents that prove you meet the requirements. We’ll take care of the rest!