If you have recently moved to the Netherlands or you are a Turkish citizen who has been living here for some time, income tax declaration (aangifte) it is normal to have many questions in your mind. In this guide, we address the points you should pay attention to when making a tax declaration in the Netherlands and especially the issues that people from Turkey are curious about, in a friendly but detailed way. With reliable information based on official sources, we will answer your questions one by one.
When filing taxes in the Netherlands, you must first certain timetables and rules you should pay attention. The income tax declaration for each year usually starts on 1 March and 1 May at the latest the declaration for the previous year must be submitted by 1 May 2025. For example, the deadline for declaring your income for 2024 is 1 May 2025. If you cannot meet this deadline, you can apply before 1 May and get an extension until 1 September. If possible, it would be good to complete your transactions without waiting for the deadline.
Before starting the tax declaration all necessary documents and information make it ready. For example:
- Income certificates: Your employer's year-end annual income statement (jaaropgaaf) or pay slips, benefit statements such as unemployment/disability benefits.
- Bank and savings account statements: Documents showing the year-end balances of your bank accounts (including accounts in the Netherlands and, if applicable, in Turkey).
- Investment and crypto breakdowns: Your stock portfolio year-end statement, your account statements on cryptocurrency exchanges.
- Housing and mortgage documents: If you are a landlord, you will receive a letter from the municipality WOZ value (the tax value of your home as of 1 January) and the mortgage year report.
- Special offers and discounts: Records of expenses that may be tax deductible, such as education expenses, certain donation receipts, alimony paid, high medical expenses.
By logging into the declaration system (with DigiD Mijn Belastingdienst through), some of the information is already pre-filled (such as salary, bank interest). However, you need to make sure that these are complete and correct. Always check the pre-filled data and correct any missing or incorrect data. For example, if you have changed jobs, there may be more than one jaaropgaaf; not all of them may be in the system, you may need to add them yourself.
If a letter from the tax office (aangiftebrief) you have received, you need to file a declaration mandatory. Even if you will not pay any tax or you will get a refund, you have to declare on the basis of this letter. (These letters usually come in January-February.) If you have not received a letter, as a rule, you can only the tax payable exceeds 56 euros declaration becomes mandatory . Nevertheless, it is often useful to fill in a declaration even if you don't have to - you may find that you can get a refund.
Declaration in pairs: If you are married or have a registered partner (fiscal partner), you can file a joint declaration. In this case, you have the opportunity to share certain income and deductions in the most advantageous way between you. For example, allocating certain deductions to the spouse with the higher income can maximise the tax refund. The system during the declaration "distribution among tax partners" screen, where income, assets and discounts you can allocate it in the most optimal way. It is possible to try this account in several different scenarios and approve the option with the most refunds/least taxes in total.
Last but not least, result check do not forget to do this. When you have completed the return, it is a good idea to compare it with the previous year's return. If you have unexpectedly received a much smaller return or paid more this year, check to see if there is a logical reason for this. If your situation has remained the same, you can usually expect a similar tax result; if there is a big difference, you may have entered something wrong.
Filing a tax return in the Netherlands, especially for salaried employees, is most often done thanks to the ease of use of the system can be handled on its own. The online declaration interface of the tax office (albeit only in Dutch) is very orientated and autofills a lot of information.
On the other hand, you have a special or complex condition it may be a good idea to work with an expert if you have one. The Dutch tax system is quite complex in some cases. Especially if the following situations apply to you, getting expert help can make your job easier:
- Filling in the declaration (M-form) for the first time: In the year you move from Turkey to the Netherlands in the year you will give M-declaration ("Migratie" form) is more complex than usual and is only available in Dutch. This form involves splitting income and deductions into two periods, as you spend part of the year abroad and part of the year in the Netherlands. Making this first declaration with a counsellor can guide you for the following years.
- More than one income or job: For example, if you are both salaried and self-employed, or if you have income from more than one employer.
- Buying or selling a house: If you have bought a house for the first time, it is important to correctly calculate benefits such as mortgage interest deduction. A house purchase and sale adds extra sections to the declaration.
- Divorce, dissolution of partnership: If you are separated from your spouse, there are special sharing rules for tax calculations for that year.
- Foreign assets and income: (If you have income or substantial assets in Turkey, it may be necessary to understand double taxation treaties and declaration methods.
- Starting your own business: If you have your own company or are self-employed (ondernemer status), the declaration will be much more detailed.
If if you find it difficult or unsure when doing it yourself, do not hesitate to ask for help. This assistance is provided by a professional tax consultant or the voluntary counselling services mentioned above. An important caveat: when you turn to someone for help never share your DigiD password - this is your personal identification. The advisor must either provide guidance in your presence or use an authorisation (machtiging) so that he/she can officially submit a return on your behalf. The tax office offers taxpayers who wish to do so face-to-face or telephone appointment You can also arrange a meeting with an officer from the tax office, especially for the declaration for the year of migration (M-form).
The first income tax return you will file in the year you move to the Netherlands is done with a special form. This form is called M-Form (Migratie Form) as M formis the declaration used for situations where you do not live in the Netherlands for part of the year (you emigrated or went abroad during the year). Therefore, if you moved from Turkey to the Netherlands, for example, in 2024, you must file your tax return for 2024 with the M-form.
How to obtain and fill in the M-form? From 2020 it became possible to fill in the M-declaration via the internet. With your DigiD Mijn Belastingdienst system "Belastingaangifte voor belastingplichtigen die een deel van het jaar buiten Nederland woonden" You can fill in the M-form online by ticking the option . Since this online system is also in Dutch, it can be challenging for those with language barriers. If you prefer, you can obtain the M-form from the tax office paper M-form It is also an option to request and fill it in by hand. The paper form is only available in Dutch, but is accompanied by an explanatory booklet. If you apply by letter, the Belastingdienst will mail you the form (usually within 1-2 weeks to your address in the Netherlands).
Since you are filing your declaration for the first time, firstly DigiD (Dutch digital identity password). If you have not yet received it, you can apply for DigiD after your registration of residence in the Netherlands (BRP) has been made. It will be fastest to submit your M-form digitally after you have obtained the DigiD.
M-form, in the Netherlands of the year your income and gains for the period when you are not residing you will also need to report it. For example, if you worked in Turkey between January-June 2024, you should report your salary for that period not in TL, In Euro equivalent you must declare (see question 8). The M-form asks you to divide the year into two parts: the part of the year you live abroad and The part where you live in the Netherlands. It is necessary to enter income for both periods separately. This form allows the tax office to calculate your tax for the part of the year in which you reside in the Netherlands. You usually do not pay tax in the Netherlands for the part of the year you lived in Turkey, but you should provide the information so that your total income can be used for some deductions in the future (e.g. a high income may limit some deductions).
Example: Let's say you moved to the Netherlands on 1 July in 2024. From January to June 2024, you earned an income of 120.000 TL in Turkey, and from July to December, you earned a gross salary of 30.000 € in the Netherlands. On the M-form, you will declare the period and income in Turkey in one section and the period in the Netherlands in a separate section. You should convert your Turkish income to Euro at the average exchange rate of that year (e.g. 120.000 TL ≈ 6.000 €) and write it in the relevant field. Since your Dutch salary is already taxed during the year (through withholding tax), you will probably receive some refund or a small additional payment as a result of the declaration.
If you arrived in the Netherlands very recently (e.g. in December) and did not have any income that year, you will usually receive information about whether you need to submit an M-form. After the end of the year in which you moved to your BRP registration address, the Belastingdienst will send a M-form invitation letter may send a letter. Even if no such letter arrives, it is in most cases a good idea to file a declaration if you started working in the Netherlands during the year.
Note Once your M-form has been processed, in subsequent years (when you live in the Netherlands for a full year) you will now switch to the regular annual declaration. Although the first declaration may seem a bit cumbersome, the subsequent processes will be more routine.
Failure to file the tax return on time can have various consequences in the Netherlands, so it is important to know the steps to take in cases where you cannot meet the deadline. If you missed the 1 May deadline and if you didn't get an extension before.the process proceeds as follows:
- Reminder letter (herinnering): Firstly, the Belastingdienst will send you a reminder. In this reminder, you are asked to still declare within a certain additional period of time (usually a few weeks). Let's say you forgot and missed the 1st of May; you may receive a reminder in mid-May, and if you declare by the new date specified in it, the problem will not grow. At this point, however, you lose the right to apply for an extension, because the deadline for applying for an extension has passed.
- Warning (aanmaning): If you do not submit your declaration even after the reminder, this time a formal notice you receive. The Aanmaning letter requires you to deliver the declaration, usually within 10 working days. This notice must be taken very seriously; otherwise the penalty will kick in.
- Fine (verzuimboete): If you do not submit a declaration within the deadline given by the notice, the tax office administrative fine fine. For the first delay, the penalty is usually €469 level . If you have been late before, the penalty can increase exponentially - penalty for repeat offences can go up to €6,709 . This penalty is a late declaration penalty and must be paid.
- Ex officio accrual: If you do not submit a declaration at all, the Belastingdienst will send a declaration of your income on your behalf. estimated evaluation (schatting) and he does it compulsory tax accrual (navorderingsaanslag) as a tax return. In other words, even if you do not report it, they calculate the tax and issue a debt with an income estimate based on the information they have (salary, bank, etc.). In this case, the delay penalty is added to this amount.
As well as filing late, not giving at all or giving incorrectly there may also be penalties. If you deliberately avoid filing a return or knowingly conceal income/assets, this is considered a more serious offence. If the tax office detects this tax loss penalty (vergrijpboete) uygulayabilir . Vergrijpboete, eksik ödenen verginin genellikle %50’si oranında bir ceza olarak kesilir; eğer çok ağır bir kasıt veya tekrarlı sahtekârlık varsa bu oran %100’e, hatta bazı durumlarda (örneğin yurt dışı varlık gizleme) Box 3 gelirleri için %300’e kadar çıkabilir . Örneğin, vergi beyannamesinde bilerek 10.000 €’luk geliri gizlediyseniz ve bunun 4.000 € ek vergi yükü varsa, vergi dairesi size 4.000 € vergiyi tahsil edip ayrıca 2.000 € ceza kesebilir (%50). Durum çok ciddi ise bu ceza 4.000 €’ya kadar (%100) çıkabilir. Bu cezalar, vergi kaçakçılığını önlemek içindir ve caydırıcılığı oldukça yüksektir.
To summarise: It is best to submit a declaration on time. Otherwise, you will first receive warnings, then fines and, if necessary, ex officio accrual. If you are late, try to make your declaration as soon as possible. If you have received a penalty letter, complete the process immediately within the specified period. Remember, you are required to submit your declaration even if a late payment penalty is imposed; paying a penalty does not entitle you not to submit a declaration. In addition, in case of failure to submit a declaration, the tax office may can suspend your rights: For example, if you have a tax refund, you can put it on hold, or if you receive child allowance, rent allowance, etc. could halt aid .
If you are in a difficult situation (e.g. you are unable to submit a declaration due to a health problem), you also have the possibility to appeal against the penalty or to submit an excuse. However, these are usually exceptional cases. It is safest to submit your declaration on time (or with an extension) every year if possible.
The Dutch income tax system allows you to recognise your income and earnings into three separate categories (boxes) separates. These are Box 1, Box 2 and Box 3 and each of them covers different types of income:
- Box 1 (Work and Home): This box, employment income and income/expenses related to your own household covers . This includes your salary income, self-employment income, pension or social welfare benefits. In addition, if you are a homeowner, the annualised value of your home (eigenwoningforfait) is counted as income and added to this box, while your mortgage interest is deducted here. Box 1 income progressive tax brackets göre vergilendirilir. 2025 itibarıyla bu oranlar ilk ~€73.000 için %37 civarı, üstü için %49.5 civarıdır (her yıl küçük değişiklikler olabiliyor). Örneğin, yıllık €50.000 brüt maaşınız varsa, bunun büyük bölümü %37 oranında vergilenir (işveren yıl içinde zaten maaşınızdan bu vergiyi kesip öder). Box 1 en geniş kapsamlı kutudur ve aktif gelirleriniz burada toplanır.
- Box 2 (Significant Shares): If in a company More than %5 shares If you are the owner (e.g. a BV company you have set up yourself or your family business), your income from this (dividends or gains on the sale of shares) falls into Box 2. This includes "aanmerkelijk belang" (important participation) denir. Box 2 gelirleri 2024 yılında %26,9 oranında vergilendirilir (hükümet politikalarına göre bu oran değişebilir; bir ara %25 idi). Yani diyelim Türkiye’de bir anonim şirkette %50 ortağınız ve 2024’te bu şirketten 10.000 € kar payı aldınız, bunu Box 2 geliri olarak beyan etmeniz ve yaklaşık 2.690 € vergi hesaplanması gerekir. Eğer hiçbir şirkette %5 veya üzeri payınız yoksa, Box 2 sizin için boş kalır.
- Box 3 (Savings and Investment): This box is yours through your wealth tax, so in a sense we can call it an "asset tax". Assets such as savings in bank accounts, stock investments, a second home (a holiday home, a house you rent out) are included in Box 3. In Box 3, the tax is calculated based on the value of these assets at the beginning of the year. Assets up to a certain amount are exempt (per person for 2024 €57.000 there is an exemption). On the part exceeding this amount, the state levies a certain default return hesaplar ve bunun %32 civarında (2023-2024 için) vergilendirir. Fiili olarak, eski sistemde kabaca varlıkların %1 civarı vergiye denk geliyordu. Örneğin, tek başınıza €100.000 tasarrufunuz varsa, €57.000 muafiyeti düşülür, kalan €43.000 üzerinden vergi hesaplanır. Bu da yaklaşık €43.000 * 0.32 * 0.30 gibi bir formülle (karma bir hesaplama) yaklaşık €400-500 vergi demektir. Important: Since Box 3 looks at your wealth and not your income, you may be taxed, for example, even if you do not receive interest on your money in the bank. From 2023, the Netherlands is reforming Box 3 taxation; from now on, your assets cash, investments and debt The tax calculation is tried to be more realistic by dividing them into types. Still, logically, we can say that you pay tax on your savings at the beginning of the year.
%30 kuralına (30% ruling) tabi olanlar için bu sistemde an important exception/regulation vardır. %30 hükmü, yurt dışından Hollanda’ya çalışmaya gelen nitelikli elemanlara maaşlarının %30’unu vergiden muaf alabilme imkânı sağlayan bir uygulama. Eğer size bu 30% vergi avantajı uygulanıyorsa, vergi beyannamesinde "partial foreign liability (partieel buitenlands belastingplicht)" you have the right to choose the option . When you tick this option, You are partially tax-exempt in the Netherlands in terms of Box 2 and Box 3:
- Impact for Box 2: %30 kuralı sahipleri “partieel buitenlandse belastingplichtige” statüsünü seçerse, Hollanda’da ikamet ediyor olsalar bile Box 2 gelirleri bakımından yabancı mukim sayılırlar . Bu, eğer Hollanda dışında bir şirkette (örneğin Türkiye’de) %5’ten fazla hisseniz varsa, bu hisselerden elde ettiğiniz kazançları Hollanda vergisine tabi tutmazlar anlamına gelir. (Türkiye o geliri vergilendiriyorsa, sadece Türkiye’ye verirsiniz.) Hollanda içinde %5 üzerinde hisseniz varsa onun vergisi yine doğar; “sınırlı Box 2 vergisi” deniyor – yani Hollanda kaynaklı önemli paylar vergilenir, yabancı kaynaklılar vergilenmez .
- Impact for Box 3: %30 rulinge tabi biri bu seçeneği seçerse, does not have to declare its worldwide savings and investments to the Netherlandsbecause in terms of Box 3 he is no longer considered a tax resident in the Netherlands. Only assets in the Netherlands (such as a holiday home in the Netherlands or bank accounts in the Netherlands) are taxable. The practical consequence of this means that if you have bank money, house or investments in Turkey, you may not show them at all in your Dutch declaration. (Also in this case you are no longer entitled to claim a refund of any withholding tax withheld on interest from deposits in the Netherlands, because it is not deductible as you are considered a foreigner). In short: %30 kuralı ile gelen biri, bu avantajdan yararlanırken yabancı ülke varlıkları için Hollanda’da Box 3 vergi ödemez .
Example: 30% ruling ile Türkiye’den Hollanda’ya gelmiş ve burada çalışan bir mühendissiniz. Türkiye’de 500.000 TL (yaklaşık 17.000 €) birikiminiz ve İstanbul’da bir eviniz var. Eğer partiële buitenlandse belastingplicht seçeneğini kullanırsanız, Hollanda vergi beyanınızda bu birikimi ve evi hiç belirtmezsiniz, dolayısıyla bunlar için Box 3 vergisi ödemezsiniz. Ancak bu seçeneği kullanmazsanız (kullanmak zorunlu değil, tercihe bağlı), o zaman Hollanda’da yaşayan herkes gibi dünya genelindeki varlıklarınızı bildirip toplam servet üzerinden verginizi ödersiniz. Tabii 17.000 € gibi bir meblağ muafiyetin altında kaldığı için vergi çıkmayabilir ama bildirme yükümlülüğünüz olurdu. %30 opsiyonunda bu yükümlülük de kalkıyor.
Önemli nokta: %30 kuralının bu advantage of partial tax liability It is not automatic, it must be chosen every year at the time of declaration. Depending on your situation, you can choose one year and give up one year, but generally those who have a lot of foreign assets always benefit, while those who do not may not care.
Many people can earn a small income from their hobbies - for example, by making and selling handicrafts, occasionally baking a cake for a fee, or making a profit from amateur photography. But how do you recognise this as taxable income? should I report it? The answer depends on the size and intentions.
Dutch tax system, does not automatically tax every money-earning activity. Firstly, an activity is subject to tax a source of income (bron van inkomen) There are some criteria for it to be counted:
- There must be economic activity: The work you do a personal hobby or an activity for the outside world that goes beyond the boundaries of the family environment it has to be. In other words, if you only bake a cake for your own family and cover their expenses, this is not an economic activity. But if you sell it to people you don't know on the internet, it is an economic activity.
- There must be an expectation of regular earnings: Activity you reasonably expect to make a profit is required. If it is clear that you will continuously make a loss from the work you do (if the costs remain higher than the earnings), in terms of tax, this "a profit-generating source" may not count. The hobby is usually not profit-orientated; even if there is income, there may be no net profit after expenses.
- You must intend to make a profit: If you really intend to make a profit, this is also taken into account (only this intention does not outweigh the actual profit expectation above).
If it fulfils these criteria, this activity a hobby that is no longer a hobby but an occupation subject to income tax it's happened. However, if it's small, it's usually "other earnings" (resultaat uit overig werk) if it is large-scale and continuous operating income and may require opening a business (KVK registration, etc.).
You can think of it simply like this: What you do as a hobby if it is not sustainable, if earnings are not systematised and if it does not have a serious profit motiveyou do not have to pay tax on your income. Hobbies or family pursuits do not constitute a source of income and such income is not declared . In this case, of course, you cannot claim your expenses against tax - it remains a hobby. However, if the hobby is growing and generating significant additional income, the tax office can no longer taxable income can count.
Example 1 (Hobby): Let's say you sell the spice mixtures you bring from Turkey as a hobby to your environment in the Netherlands. You have a total income of €300 for the year and maybe €250 in expenses. In this case, the net income is so low and there is no continuity that you probably do not need to declare it. For the tax office this is a hobby income as
Example 2 (Income deemed income): You first sold the jewellery you made as a hobby at home to your friends, then you started taking orders on Instagram and started earning €5,000 a year. Now that this has become a regular source of income, you must report it in your tax return. Probably even without a business registration, "overige inkomsten" (other income) you can declare it under Box 1. In this case, you deduct expenses such as the cost of materials used to make the jewellery and only tax the net profit.
Conclusion: If you are unsure, even if you are hesitating whether or not to declare a small income, there is no harm in declaring - If necessary, the tax office will consider this as a hobby and will not tax it. However, if you do not declare it and the tax office recognises it as income, there may be a penalty. General rule: Hobby, non-profit and low-level earnings are not taxable . However, if the hobby turns into a business, tax must be paid. If in doubt, you can ask a counsellor or obtain information directly from the tax office.
Yes, everyone who is considered a full taxpayer (resident) in the Netherlands, worldwide presence must be declared. This also includes deposits in your bank accounts in Turkey. This means that when filing the Dutch tax return, you must calculate the Euro equivalent of the money in your bank accounts in Turkey as of 1 January Box 3 (sparen en beleggen) section of this report.
Dutch tax system, under Box 3 the total value of all bank and savings accounts This enquiry does not discriminate between countries. The official Belastingdienst source also states clearly: "If your accounts are outside the Netherlands, you must convert their total value into euros as of 1 January and report it". Therefore, if you have money in Turkey in TL, USD or other currencies, you must declare them by converting them into euros at the exchange rate on 1 January of each year. For example, if you have 100.000 TL in your account in Turkey on 1 January 2025 and the exchange rate of that day is approximately €1 = 30 TL, this is approximately €3.333 as Box 3.
What will be the result of this notification? We said that the Netherlands levies tax on total assets above a certain amount (tax exempt up to €57,000 per person for 2024). If you have assets in the Netherlands and Turkey (and other possible countries) the sum of all your cash assets If this does not exceed the exemption limit, technically no tax is calculated, but you must still have declared it correctly. If your total assets exceed the exemption, there will be a small tax on the excess. Note that if you have large deposits in your accounts in Turkey, they will be taxable in the Netherlands. (For example, if you are a single person holding €100,000 in Turkey, €57,000 of this is exempt and you will pay a tax of a few hundred euros per year on the remaining €43,000.)
It's an important detail: If you have interest income from your bank accounts in Turkey, the Netherlands does not tax this separately as income. This is because the Netherlands does not tax interest income but the total deposits themselves (Box 3 system). So let's say you have 100.000 TL in the bank in Turkey and you receive interest, you only declare the value of that 100.000 TL to the Netherlands; interest income is not declared separately, so there is no double taxation. Turkey has already deducted withholding tax from the interest, while the Netherlands also collects wealth tax from you.
Information sharing with Turkey: Today, under international bank information sharing agreements (CRS - Common Reporting Standard), foreign financial institutions share your account information with the Netherlands. In other words, the Dutch tax office can automatically see the accounts and amounts registered in your name in Turkey. Therefore, any thought of "let me hide the money in Turkey" is very risky. Both because you have to declare it as a rule and because it can be automatically detected. Declare all your bank accounts in Turkey.
Exception: If %30 rulinge tabi olup “kısmi yabancı mükellefiyet” statüsünü seçtiyseniz, in this case You do not need to report your bank money in Turkey in the Netherlands (because there is a Box 3 exemption, see question 5). Otherwise, the rule is the same for everyone with full residence in the Netherlands.
When filling in the M-form (declaration for the year of migration), you must declare your income in Turkey In Euro you must declare it. The Dutch tax office stipulates that the entire declaration must be made in Euro currency. Therefore, whatever salary, rental income, interest, etc. you earn in TL in Turkey, you need to write them down by converting them into Euros according to the exchange rate of the relevant period.
Which exchange rate to use? The Belastingdienst usually allows you to use the average exchange rate for the year or the exchange rate on the day the income was received. For example, you received a total salary of 180,000 TL in Turkey from January to June 2024. When declaring this on the M-form, you can either calculate it separately at each month's exchange rate and add it up, or you can use the average exchange rate for that period. The Dutch tax office shows a reasonable flexibility in this regard; the important thing is a frugal and accurate translation to do so. Even DNB (Dutch Central Bank) publishes the average annual exchange rates, you can take it as a reference. For example, if the average for 2024 is €1 = 30 TL, you declare an income of 180,000 TL as approximately €6,000.
In the explanation manuals of the M-form, there is usually the instruction "convert foreign income into euros". If the TL fluctuated a lot during the year, you can do a more detailed calculation. The tax office will accept this as long as you convert in good faith at a reasonable exchange rate. Never write in the wrong currency - It would be a big mistake to enter a figure in TL, because the system perceives it as Euro and makes the wrong calculation. Always convert it to Euro and enter it that way.
Example: In 2023, you earned a rental income of 50.000 TL in Turkey and moved to the Netherlands in September 2023. When filling out the M-form for 2023, you declare your rental income for the January-August period in Turkey as €2,500 at an average exchange rate of, for example, €1=20 TL. In addition, if you have paid tax on this income in Turkey (GV withholding tax, etc.), you also declare it as "income taxed abroad" You can specify in the section so that the Netherlands does not apply tax on that income again under the double taxation avoidance agreement. Usually, these details are also asked in M-form processes.
To summarise, The currency for all Dutch tax returns, including the M-declaration, is the Euro. Enter the amounts you have earned in Turkey converted into Euros at the exchange rate of that year. You can also use the official currency conversion tool or rates provided by the Belastingdienst. You will not have any problems when you declare in this way.
Yes. The Netherlands, where individuals residing in and their worldwide assets. tax coverage. Your ownership in Turkey assets such as real estate, vehicles, investments, gold, etc. may also be considered within this scope and may need to be reported in the Dutch tax return.
When we say "assets" here, we are referring to assets with high tangible value and assets for investment purposes. For example, if you own a house, a plot of land, a property that you rent out, or have a large gold/exchange portfolio for investment purposes in Turkey, these are Box 3 (sparen en beleggen) in "assets abroad" should be declared as "total value of all assets you own". Box 3 already asks for "the total value of all assets you own" and there is no distinction between foreign and domestic. So if the market value of your house in Turkey as of 1 January is, for example, €100,000, you must declare it as a second home (tweede woning) in Box 3. If you have invested in the stock market in Turkey (stocks, funds, etc.), you must convert your portfolio value at the beginning of the year into Euros and declare it.
In terms of double taxation: If income from assets in Turkey (e.g. rental income) is taxed in Turkey, the Netherlands may not charge income tax on this income again due to the tax treaty. However, the asset itself (as wealth) is included in Box 3 in the Netherlands and wealth tax is subject to taxation. As Turkey does not have a general wealth tax, this does not generally constitute a double taxation. For example, if you rent out your house in Turkey, you pay income tax in Turkey; in the Netherlands you declare the value of the house as Box 3 wealth, not the rental income. Since these two are different types of taxes, they work separately (the Netherlands thus levies a certain amount of tax on the wealth). Nevertheless, the Netherlands can sometimes exempt foreign real estate in Box 3 under double taxation avoidance treaties - this is a tricky issue, usually related to very high value real estate and tax credit mechanisms. Put simply, Report your house, car etc. in the NetherlandsIf necessary, the system calculates the tax, if necessary, exempts it by agreement.
The risk of not reporting: Those who knowingly do not declare their assets abroad may be subject to heavy penalties if they are detected in the future (tax evasion). We have said that financial information such as bank accounts are shared automatically; assets such as real estate can also be revealed from title deed records or in other ways. Therefore, if you legally reside in the Netherlands, do not hide your property in Turkey, declare it. You can make corrections if you realise it yourself after incorrect or incomplete declaration. The tax office allows you to change your declarations up to the last 5 years (without penalty). As long as you declare in good faith.
30% ruling exception: Soru 5’te bahsettiğimiz gibi, eğer %30 vergi avantajınız varsa ve partiële buitenlandse belastingplicht option, you may not declare your assets in Turkey in the Netherlands at all. This is because this status excludes Box 2 and Box 3 assets. This is an exception for a limited number of expats who benefit from this rule. Apart from that, everyone resident in the Netherlands declare their home, land and investments in Turkey.
Example: Let's say you have a summer house and a plot of land in Turkey. Let the value of your summer house be €80,000 at the beginning of 2024 and the value of your land be €20,000. If you are single in the Netherlands, you have assets totalling €100,000. In Box 3, the exempt amount will be €57,000 and the taxable amount will be €43,000. On this €43,000 you may pay a few hundred euros tax that year. If you are together with your spouse, you may not even pay tax because the exemption is €114,000. However, if you do not make a declaration, if these assets are detected in the future, you will have to pay both retroactive tax and penalties.
In short, Declare your assets in Turkey. This is both a legal obligation and the best way to avoid problems in the future. Do not forget to convert the values into Euros (for real estate, the market value or property tax value in Turkey can be taken as a basis). If your assets are very high and are subject to a significant Box 3 tax in the Netherlands, it is also worth seeing a counsellor for tax planning.
Making an unintentional mistake when filling out a tax return can happen to anyone. The main thing is to correct the error as soon as you realise it and not to knowingly provide false information. Dutch tax system, quite flexible in making corrections and reasonable behaviour.
If I make a mistake, can I correct it? Yes, if you later realise that the declaration you have submitted is incorrect or incomplete, you can In 5 years you can easily fix it . After you submit your declaration, Mijn Belastingdienst You can reopen the declaration for the relevant year, make the necessary changes and resubmit it. The tax office will always be based on the last version you submitted. This process works as if you are submitting that year's declaration all over again, but the system only updates the changed parts. For example, you realise in 2024 that you have forgotten a bank account in your 2022 declaration; you open 2022 again, add that account and send it again, the Belastingdienst will calculate the tax according to the new situation and send you a new result. There is usually no penalty for this correction, as long as you have voluntarily corrected it yourself. Note If you notice an error immediately after submitting your declaration in March-April, feel free to change it by 1 May. If you submit a new version before that date, it will be treated as if you had not submitted the first version.
The type of error is important: If the mistake you made a simple miscalculation or forgetting error (e.g. misplacing a deduction, omitting a small income), the tax office usually considers this to be an unintentional mistake. In this case, you will probably only have to submit a correction and there will be no additional penalty. However, if you have paid less tax than you should have because of this mistake, the tax office will issue you a penalty. additional accrual (navorderingsaanslag) to claim the missing amount. In this additional accrual, an amount in addition to the missing tax delay interest (belastingrente) applicable (annual interest at a set rate each year, roughly around %4). So €1,000 underpayment of tax in 2022, corrected in 2024; you will be asked to pay perhaps ~€1,080 with two years of interest. Interest is not a penalty; it is a difference due to late payment of the state's receivable.
The error was intentional: If you have made a mistake in your declaration a deliberate attempt at tax evasion the situation becomes serious. The tax office may not be able to prosecute those who knowingly make false declarations. vergrijpboete (irregularity fine) kesebilir . Bu ceza, eksik beyan edilen verginin belli bir yüzdesi olarak uygulanır (genelde %50; ağır durumlarda %100 veya Box 3 gizlemelerinde %300’e kadar) . Kasıtlı durumda ayrıca adli süreç riski de vardır, ancak bu çok büyük vergi kaçakçılıklarında devreye girer. Örneğin, bilerek yurtdışı hesaplarınızı sakladığınız ortaya çıkarsa, son 12 yıl için geriye dönük vergiler ve bunların cezaları istenebilir . Bu yüzden, one should never knowingly make false statements.
What if the tax office finds my mistake? Let's say you didn't notice or correct it, but the tax office found a discrepancy. In this case, they can usually ask you questions first (you may receive a "request for information" letter when your current tax return is being examined). Depending on your answer, you can either correct it yourself or they will make a correction. If the tax office detects and there is an underpayment of tax, you will receive a adjustment accrual gönderir. Eğer bunun basit bir hata olduğuna inanırlarsa genelde sadece faiz eklerler, ceza yazmazlar (“automatische verzuimboete” denilen ceza artık ilk hatalarda otomatik uygulanmıyor, insani değerlendirme yapılıyor). Ancak eğer daha önce uyarı almışsanız veya bariz bir geliri gizlemiş görünüyorsanız, o zaman %50 vergrijpboete gibi cezalar gelebilir.
In short: If you make a mistake on the tax return you can fix it - It is best to fix it as soon as possible. If you correct it, there is usually no problem, maybe you will pay some interest. Making a mistake and leaving it is risky; if it is discovered, you will pay additional tax and maybe a penalty. The important thing is to make sure that mistakes are not intentional and to be transparent. If you are in doubt about something, consulting an expert before submitting the declaration can also prevent a mistake in the first place.
Remember, the tax office also anticipates that people can make mistakes and is flexible accordingly. You may even receive a letter following your return. pre-assessment letter and if they see inconsistencies there, they can warn them. And you can always come back "remorse discount" You can avoid penalties if you correct the misrepresentation yourself within its scope. Just be in good faith and do not hesitate to correct it.
Yes, stocks, cryptocurrency, mutual fund, bonds such as your investment assets must also be declared in the Netherlands. These types of assets can be declared in Box 3 (sparen en beleggen) category, i.e. the section on taxation of savings and investments. The Dutch tax office calculates wealth tax by looking at the total value of these assets you own at the end of the year.
Stocks and shares: If you are an individual investing in shares (whether on Borsa Istanbul, NYSE or Amsterdam Stock Exchange), you must calculate and declare the market value of the shares you hold as of the end of the year (1 January) in euros. For example, if you have shares in various companies with a total value of €10,000, you will include them in Box 3 as €10,000. Usually Dutch banks or brokers provide a report at the end of the year called "jaaroverzicht", which shows the value of your portfolio as of 31 December, which you can use as a reference. If you use a foreign broker (Interactive Brokers, Borsa Istanbul, etc.), you can calculate them yourself from market prices. You do not need to enter these separately in the declaration; total investment portfolio (If you want, you can allocate shares under "aandelen", bonds etc. under "obligaties", but the system usually asks for the total).
If the shares you own more than %5 shares in a company then that part of it would fall into Box 2. So the shares you buy in large publicly traded companies on the stock exchange will usually be well below %5, so for most individual investors, all shares are included in Box 3.
Cryptocurrency: Yes, cryptocurrencies must also be clearly declared, and in recent years the Belastingdienst has been emphasising this in particular. According to the official statement "You must declare your Bitcoin and other digital currencies with their real value as of 1 January" . Calculate your crypto assets by converting them to Euros at the exchange rate of the exchange or wallet platform you are using. For example, if you own 0.5 BTC and 10 ETH on 1 January 2025 and 0.5 BTC = €12,000 and 10 ETH = €15,000 on that date, you should put a total of €27,000 in Box 3. Many crypto exchanges give account statements as of the beginning of the year; you can look there. If you have your own wallet, you can get the current price from a source such as coinmarketcap and convert it. Belastingdienst does not require a specific exchange price for crypto, "the exchange rate of the platform you use is valid" It says. So if you are using Binance, you can base Binance's price on 1 January.
Crypto declaration is like shares, investment asset as a single item. In the new tax system, they may ask for crypto separately, but for the time being it is sufficient to be listed under the heading "overige bezittingen" (other assets). The important thing is to calculate the value correctly.
How will it be declared? Declaration form, "Box 3 - Bezittingen (assets)" you will see subcategories: Bank accounts, shares/obligaties, second home, other assets, etc. For your shares, you should enter the total amount under "aandelen/obligaties", for crypto you should usually enter the total amount under "overige bezittingen" (other assets). In some cases, the system may ask for crypto separately; if so, you can also enter it there.
Tax on stock and crypto income: An important point is that individual investments in the Netherlands value increase or profit is not directly taxable. In other words, even if you make a profit from your shares or your crypto increases in value, you do not declare this as income. Wealth tax is only calculated on the total value at the end of the year. Therefore, you do not have to declare the profit on shares you sell during the year (the Netherlands does not follow this). However, the balance of this advantage is that there is no immediate reduction in tax even if the value of the asset falls - since the value on 1 January is taken as a basis, if, for example, the crypto is high on 1 January and then falls, you will pay tax on the higher value. The reverse is also possible.
Example: On 1 January 2024, you held €5,000 worth of various coins. In 2024 the crypto market fell and on 31 December its value dropped to €2,000. For the year 2024 (to be declared in 2025) you declared the value of €5,000 on 1 January 2024 and maybe €0 tax (as it is under exemption) or very little tax. In 2025, you will declare €2,000 on 1 January 2025. In other words, since the tax system is concerned with your wealth and not your actual earnings, it does not reflect these ups and downs directly, but works according to the annual snapshot.
Conclusion, you must report all your investment assets such as stocks, crypto and similar. The way of declaration is usually to write down the total value. This is not only a legal obligation, but also important to avoid problems in the future. The tax office can now also request crypto account information (above certain limits) from exchanges, and international cooperation on this issue is increasing. Therefore, trying to hide these assets carries a great risk. As long as you declare it correctly In most cases, the tax you will pay on these assets will be quite reasonable (or even zero due to the exemption).
Note If you trade professionally on a daily basis and earn significant income from it, the tax office may consider it a commercial activity rather than a hobby. It is a very exceptional case (such as those who make a living from crypto trading). Then different tax obligations may arise (may shift to Box 1). But for most investors, these do not apply; therefore, you can report your shares and cryptos nicely in Box 3 and fulfil your obligation.
Tax filing in the Netherlands, although daunting at first glance, is a smooth process as long as you understand the rules and act in a timely manner. As we have touched on in this guide, the important thing is fill in the declaration with accurate and complete information, do not waste time and do not hesitate to seek expert help if necessary. Official sources (e.g. Belastingdienst, Rijksoverheid) always provide the most up-to-date information; when in doubt, you can consult these sources or call the tax office. Remember, filing a tax return is both an obligation and sometimes a right - filing a tax return is the only way to get back the taxes you have overpaid.
We hope these comprehensive explanations will enlighten you on your tax filing journey in the Netherlands. We wish you success and good luck in your new life!
Sources: Compiled from guidelines and information on Belastingdienst and Dutch government websites. For example, according to the official statements of Belastingdienst, it is clearly stated that foreign bank accounts must be declared by converting the value of 1 January into Euro. Likewise, the government states that those who have received a letter of invitation to file a tax return are required to file a return, while those who have not received a letter of invitation to file a tax return are required to file a declaration in case of debts exceeding a certain amount. All information in this guide has been prepared in accordance with the latest official sources. If you have special circumstances, it is recommended that you seek one-to-one counselling.
© Rehberim.nl
English (UK)
