Reference

Dutch tax and finance glossary

Plain-English definitions of the Dutch tax, banking, mortgage, and bureaucracy terms expats run into. 73 entries, cross-linked to the calculators and guides where they show up in practice.

3

30% ruling30%-regeling: Dutch wage-tax facility that lets your employer pay up to 30% of your gross salary as a tax-free reimbursement of extraterritorial costs. In 2026 the rate is a flat 30%; from 1 January 2027 it drops to 27% for everyone. Lasts five years for hires from 2019 onwards. Capped at the WNT-norm (€262,000 in 2026).

A

Aangifte: Tax return. The aangifte inkomstenbelasting (income tax return) is filed annually by 1 May for the previous calendar year. Online via Mijn Belastingdienst with DigiD.
Aanvullende verzekering: Supplementary health insurance — modules added on top of the basisverzekering for things the statutory package doesn't cover, like routine physiotherapy, dental, glasses, and abroad cover.
Akte van levering: Notarial deed of transfer that finalises the sale of property in the Netherlands. Signed at the notary alongside the hypotheekakte (mortgage deed) on the closing date.
Algemene heffingskorting: General tax credit. An amount subtracted from your income tax liability that phases out as income rises. Applied automatically by your employer through loonheffingskorting at your main job.
ANBIAlgemeen Nut Beogende Instelling: Charity status recognised by the Belastingdienst. Donations to ANBI-registered charities are deductible: one-off gifts above a 1% threshold (max 10%) of your drempelinkomen, periodic notarised five-year gifts deductible without threshold (capped at €1.5M/year from 2026).
AOWAlgemene Ouderdomswet: Dutch state pension. Funded by national insurance premiums (premie volksverzekeringen) on the first Box 1 bracket. From state pension age, you stop paying the AOW slice and your effective tax rate drops several percentage points.
Apostille: International legalisation stamp under the Hague Convention. Required on foreign birth, marriage, and divorce certificates before a Dutch gemeente will accept them for BRP registration. Get it from your country of birth's foreign ministry before flying.
Arbeidskorting: Employment tax credit. A bigger credit than the algemene heffingskorting, applied to wage income. Phases up then down with income — peaks for mid-range earners around €45k–€50k.

B

Basisverzekering: Mandatory basic Dutch health insurance. Coverage is identical across insurers by law (GP, hospital, prescriptions, maternity). Must be taken out within four months of BRP registration.
Belastingdienst: Dutch Tax and Customs Administration. Handles income tax, VAT, payroll tax, and most allowances (toeslagen). Online portal: Mijn Belastingdienst, accessed via DigiD.
Beschikking: A formal decision letter from a Dutch government body — Belastingdienst beschikkingen include the 30% ruling approval, voorlopige aanslag, and final aanslag.
Bezwaar: Formal objection to a Dutch tax assessment. Must be filed within 6 weeks of the dagtekening (date) on the assessment letter. Free; can be filed online via Mijn Belastingdienst.
Bijtelling: Income added to your taxable wage if you have a company lease car for private use. A percentage of the catalogue price (varies by emissions; lower for fully electric) is added each year to your Box 1 income.
Bijzonder tarief: Flat percentage withheld on one-off payments (bonuses, holiday allowance, 13th month) instead of taxed through the regular monthly curve. Usually overshoots the eventual annual rate; the excess comes back at year-end via the tax return.
Box 1: The income-tax box covering wages, freelance profit, pensions, and the owner-occupied home (with mortgage interest deduction). 2026 brackets: 35.75% up to €38,883, 37.56% up to €78,426, 49.50% above.
Box 2: Income-tax box for substantial shareholdings (5%+ in a company you control). Two-tier rate structure on dividends and capital gains realised from such holdings.
Box 3: Wealth tax box covering savings, investments, second homes, and crypto. Taxed on a deemed return rather than actual gains. 2026 tax-free allowance: €59,357 per person. Rate 36% on the deemed return.
BRPBasisregistratie Personen: Dutch civic register. Registering in the BRP at your gemeente is the trigger for receiving a BSN and the start of formal residence in the Netherlands.
Brutoloon: Gross salary, before any deductions. Shown as the headline figure on your loonstrook before pension premie, loonheffing, and any 30% ruling deduction are applied.
BSNBurgerservicenummer: Nine-digit Dutch personal ID number. Replaces the older sofinummer (since 2007). Required for working, banking, health insurance, tax filings, and signing rental contracts. Permanent for life.
BTWBelasting Toegevoegde Waarde: Dutch VAT. Standard rate 21%, reduced rate 9% (food, books, public transport, cultural goods). Self-employed (ZZP) collect and remit it via quarterly btw-aangifte.

C

CAK: Centraal Administratie Kantoor. The Dutch agency that enforces health insurance compliance — fines and forcibly enrols residents who don't take out a basisverzekering on time.

D

DigiD: Government digital ID. Login for Mijn Belastingdienst, Mijn toeslagen, the gemeente, your insurer's portal, and many other services. Apply after BSN issuance via digid.nl; activation code arrives by post within five working days.
Drempelinkomen: Threshold income — the gross income figure used to compute the deductibility floors and ceilings for ANBI gifts, medical expenses, and similar deductions.

E

Eigen risico: Annual deductible on Dutch health insurance. €385 for 2026 (unchanged since 2016). Scheduled to drop to €165 from 2027. GP visits, maternity, and most preventive care don't count toward the deductible.
Eigenwoningforfait: A deemed rental imputation added to Box 1 income for owner-occupied homes. 0.35% of WOZ value for homes up to €1,350,000 in 2026; higher rate on the excess. Reduced by hypotheekrenteaftrek.
ET-regelingextraterritoriale kosten: Alternative name for the 30% ruling on payslips and contracts. Refers to the legal basis: tax-free reimbursement of extraterritoriale kosten (the costs of working from abroad).

F

Fiscaal partner: Fiscal partner — the spouse, registered partner, or qualifying cohabitant whose income is consolidated with yours for some tax calculations. Status checked on 1 January of the tax year. Required for many joint deductions.

G

Gemeente: Dutch municipality. Where you register in the BRP, request a BSN, get DigiD activation codes posted, and arrange most local services (waste, parking permits, marriages).
Gross-up: An employer compensating you for tax — common in expat contracts where the employer pays the tax on a benefit so the net value to you matches the agreed figure. Less common in NL than in US-style packages.

H

Hypotheek: Dutch mortgage. Most expats take a 30-year annuïteit fixed for 10 or 20 years. Maximum borrowing is set by Nibud financieringslast tables; LTV up to 100% of purchase price for primary residence.
Hypotheekakte: Notarial mortgage deed signed at closing. Sets out the mortgage terms and the bank's lien on the property. Signed alongside the akte van levering.
Hypotheekrenteaftrek: Mortgage interest deduction on your primary residence. Capped at 37.56% in 2026 (the second Box 1 bracket rate), so high earners see less benefit than they used to. Available for annuïteit and lineair mortgages.

I

iDEAL: Dominant Dutch online payment method. Used for most e-commerce, government payments, parking apps, and Tikkie peer-to-peer transfers. Currently being rebranded as iDEAL | Wero across the EU.
INDImmigratie- en Naturalisatiedienst: Dutch Immigration and Naturalisation Service. Issues residence permits, work permits, and handles naturalisation. Non-EU expats deal with IND for visas; EU/EEA citizens skip them.

J

Jaaropgaaf: Annual income summary issued by your employer by end of February each year. Shows total gross, total loonheffing withheld, holiday allowance paid, and other taxable employer contributions. Used to pre-fill your tax return.

K

Kennismigrant: Highly skilled migrant. Non-EU/EEA workers admitted under the kennismigrantenregeling — a fast-track residence permit for roles paying above an indexed salary threshold. Often combined with the 30% ruling.
Kindgebonden budget: Income-dependent child allowance from the Belastingdienst, on top of the universal kinderbijslag (paid by the SVB). Apply via Mijn toeslagen.
Kosten koperk.k.: "Costs for the buyer" — appended to property listings to indicate transaction costs (transfer tax, notary, mortgage advisor, valuation) are paid by the buyer on top of the asking price. Standard for resale homes.

L

Loonheffing: Combined wage tax (loonbelasting) and national insurance contributions (premie volksverzekeringen) withheld from your salary at source by your employer. The biggest single deduction on most payslips.
Loonheffingskorting: Combined application of the algemene heffingskorting and arbeidskorting at source. Apply at one employer at a time — applying at two means under-withholding and a tax bill at year-end.
Loonstrook: Dutch payslip. Shows brutoloon, deductions, holiday allowance accrual, and year-to-date totals (cumulatieven). See the payslip guide for a line-by-line decoder.

M

M-form: Migration-year tax return. Used for the year you arrive in or leave the Netherlands, splitting the year into resident and non-resident periods with different rules. Paper-based, almost always handled by a tax advisor.
Makelaar: Dutch real-estate agent. Sellers hire a verkoopmakelaar (selling agent), buyers may hire an aankoopmakelaar (buyer's agent — typically 1–1.5% of purchase price or fixed fee).
Mijn Belastingdienst: Online portal of the Belastingdienst. Used to file the annual aangifte, view voorlopige aanslagen, request extensions, and submit bezwaren. Login via DigiD.
Mijn toeslagen: Online portal for Dutch allowances (toeslagen): zorgtoeslag, huurtoeslag, kindgebonden budget, and kinderopvangtoeslag. Login via DigiD.
MKB-winstvrijstelling: Small-business profit exemption for self-employed (ZZP). A percentage of your profit (after zelfstandigenaftrek) is exempted before applying Box 1 brackets. 2026 rate: 12.31%.

N

NHGNationale Hypotheek Garantie: State-backed mortgage guarantee for properties up to €470,000 in 2026 (€498,200 with energy-efficient measures). One-off premium of 0.4% in 2026 buys you a cheaper interest rate and a backstop if forced sale becomes necessary.
Notaris: Dutch notary. Required at property closing to draft and execute the akte van levering and hypotheekakte. Fees typically €1,500–€2,500 for a standard transaction; quotes vary, so shop around.

O

Onbelaste vergoeding: Tax-free reimbursement. Most relevant case: the 30% ruling tax-free portion. Also applies to commuting allowances up to a per-kilometre rate, work-from-home allowance, and the WKR (work cost regulation) modules.
Overdrachtsbelasting: Transfer tax on property purchase. 2% for owner-occupiers, 8% for second homes and investment properties (cut from 10.4% on 1 January 2026). Under-35 first-time buyers pay 0% up to €555,000 in 2026.
Overstapservice: Free 13-month forwarding service for switching between Dutch banks. Redirects incoming payments and direct debits from your old account to the new one — the cleanest way to switch without missing a payslip or tax payment.
OZBOnroerendezaakbelasting: Local property tax paid annually by owners, based on the WOZ valuation. Usually €200–€700/year depending on the gemeente. Renters don't pay OZB but pay smaller riool and afval surcharges.

P

P-form: Standard annual income tax return for full-year Dutch residents. Filed online via Mijn Belastingdienst. Most fields pre-filled; deadline 1 May with free extension to 1 September.
Partial non-resident: Election available with the 30% ruling (pre-2024 grants) to be treated as non-resident for Box 2 and Box 3 income. Abolished from 1 January 2025 for new rulings; transitional rules let pre-2024 holders keep it through end of 2026.
Pensioenpremie: Pension contribution. Usually split between employer (larger share, not deducted from your pay) and employee (4–8% of pensionable salary, deducted on your loonstrook). Sector-specific schemes vary.
Periodieke gift: Periodic charitable gift on a five-year notarised commitment. Deductible without the 1%-of-income threshold that applies to one-off gifts; capped at €1,500,000 per year from 2026.

R

RNIRegistratie Niet-Ingezetenen: Non-resident registration. A handful of gemeenten run RNI desks that issue a BSN to people who need one but don't (yet) live in the Netherlands. Common for cross-border workers and pre-arrival 30%-ruling filings.

S

Sofinummer: Old social-fiscal number replaced by the BSN in 2007. Numbers carried over, so an old sofinummer is now your BSN. Old documents may still reference it.
Startersvrijstelling: First-time buyer exemption from transfer tax (overdrachtsbelasting). Buyers aged 18 to under 35 pay 0% up to a price cap (€555,000 in 2026), once per lifetime, on a primary residence.

T

Tikkie: Dutch peer-to-peer payment app, originally from ABN AMRO and now bank-agnostic. Send a payment request via WhatsApp/SMS; recipient pays via iDEAL.
Toeslagen: Dutch allowances administered by the Belastingdienst's Dienst Toeslagen: zorgtoeslag (healthcare), huurtoeslag (rent), kindgebonden budget (child), and kinderopvangtoeslag (childcare). Apply via Mijn toeslagen with DigiD.

V

Vakantiegeld: Holiday allowance. 8% of gross salary accrued each month (legal minimum) and typically paid out as a lump sum in May. Taxed at the bijzonder tarief.
Voorlopige aanslag: Provisional tax assessment. If you regularly receive a refund or owe extra (often due to mortgage or self-employment), the Belastingdienst can spread the amount across monthly payments instead of a year-end lump sum.
Vrije sector: Free-sector rental market. Rentals above the regulated-sector price ceiling, with flexible rent indexation and (since 2016) maximum 24-month fixed-term contracts for self-contained units. Most expat-relevant rentals.

W

WLZWet Langdurige Zorg: Long-term care insurance. Funded by national insurance contributions in the first Box 1 bracket. Covers nursing-home and disability-related long-term care.
WNT-norm: Public-sector salary cap (Wet Normering Topinkomens). Used as the cap on the 30% ruling: tax-free reimbursement only applies to gross salary up to €262,000 in 2026.
WOZWaardering Onroerende Zaken: Annual valuation of your home, set by the gemeente and used to calculate OZB and eigenwoningforfait. Updated yearly; you can object via the gemeente if you think it's too high.

Z

Zelfstandigenaftrek: Fixed self-employed deduction subtracted from ZZP profit before income tax. Phasing down each year — €1,200 in 2026, scheduled to fall further in coming years. Combined with MKB-winstvrijstelling.
Zorgtoeslag: Income- and asset-dependent healthcare allowance from the Belastingdienst. 2026 ceilings: €40,857 single income, €51,142 joint with toeslagpartner. Maximum benefit €129/month single or €246/month with partner.
ZVW bijdrageZorgverzekeringswet contribution: Healthcare contribution paid by your employer (6.10% in 2026, capped at €79,409 of wage). Self-employed pay 4.85% of profit instead. Separate from your monthly basisverzekering premium.
ZZPZelfstandige Zonder Personeel: Self-employed without employees — Dutch sole-proprietor / freelancer status. Registered at the Kamer van Koophandel (KvK). Files own income tax with zelfstandigenaftrek and MKB-winstvrijstelling, plus quarterly btw-aangifte.

Definitions are educational summaries based on current Dutch legislation as of May 2026. Always confirm specific situations with the Belastingdienst, your gemeente, or a qualified tax advisor.