30 January 2024Tax Services

There is a somewhat humorous, and cynical, Dutch saying about two unavoidable facts in life:

• The first: there is a time in everyone’s life that they will pass away;
• The second: until that time comes, you will have to do your annual tax.

At Klår we wish everyone good health and a long life 😊, other than that there is not much we can do to help with the first fact. However, when it comes to tax, we would love to guide you in gaining clarity.

We understand that the Dutch tax system can be complex. There are constant changes to the regulations from the government which leads to overkill of information to process. To provide you with peace of mind we created Klår Tax Services in 2023.

1. Annual Tax Return 2023

As is common practice in most countries, the residents in the Netherlands are also subject to some form of taxation. This includes, and is not limited, to income, wealth, and property ownership.

But there is some good news! As an expat, there are possibilities for tax benefits and allowances. These possibilities are dependent on individualistic circumstances such as what residency status you have, your total income, and the nature of your work. It is important to know what benefits are eligible for you, and that you finalize the application correctly and stick to the timelines.

Speaking of timelines, the final deadline to complete your annual tax return is officially the 1st of May. However, as always the quicker the better, as the earlier you submit your application the sooner you receive your feedback from the tax authority.

Not to worry if you do not make the 1st of May deadline it is not the end of the world, when you lodge your tax return with us we are able to extend the deadline 😊. For any questions you can always have a look at our website or reach out to us (info@klarfinance.nl).

2. Provisional Tax Refund 2024

In the Netherlands there is the option to claim you tax refund per month instead of per year. In Dutch we call this the ‘voorlopige teruggave’, and it’s a great way to optimize you monthly cashflow.

How it works, with the provisional tax refund a calculation of the expected outcome of the tax return is made based on the coming year (2024), and from this calculation, the yearly refund can be paid per month upfront. Then, when the year is finished, the results of your definitive tax return and the provisional tax assessment will be settled.

1. 2% Transfer Tax Exemption

If you meet a few simple requirements you may be exempt from paying the 2% transfer tax when you buy a home. This is very positive news as it can save you a pretty penny. The criteria are:

• Under the age of 35
• Purchasing a residential home below € 510,000 kk
• Haven’t made use of this incentive before

2. No Capital Gains Tax If You Have Made A Profit On Your Home

Although other countries might, the Netherlands doesn’t charge any property tax when you make a profit from the sale of your home.

Need guidance on the annual tax return or the provisional refund?

• For the annual tax return, we need an annual income statement and mortgage statement etc.) from 2023
• For the provisional refund, we need income and mortgage information from 2024;

If you are interested feel free to contact us and we can provide you with an overview of what we need, and based on this we can guide you through a relaxed process.

Feel free to check our fees by clicking here.

For any enquiries, you can also reach out to us and we are more than happy to assist.