Savanna Hoffman
The Dutch tax system can be confusing for international students, especially when it comes to understanding their resident status and whether their scholarships or grants are taxable. Students are considered tax residents in the Netherlands, and they must file a tax return if they receive a tax return letter and the amount payable is more than €47. However, even without receiving a tax return letter, filing a tax return can be advantageous as certain expenses, such as textbooks and healthcare costs, may be deductible from their taxable income.
| Characteristics | Values |
|---|---|
| Do international students need to pay tax in the Netherlands? | Yes, international students need to pay tax in the Netherlands on their taxable income. |
| What is taxable income? | This includes income from work, internships, scholarships, and grants. |
| Do students need to file a tax return? | Yes, students need to file a tax return if they receive a tax return letter and the amount they would have to pay is more than €47. However, it is useful to file a tax return even if you don't receive a letter, as you may be entitled to a refund. |
| What is the income tax rate? | The income tax rate depends on the income bracket. For income up to €68,508, the rate is 37.10%, and for income above that, the rate is 49.50%. |
| Are there any deductions or credits available? | Yes, students can deduct certain expenses, such as healthcare costs, textbooks, and other study costs, from their taxable income. They may also be eligible for tax credits, which reduce the amount of tax payable. |
| What about other types of taxes, like property tax? | Property tax is usually paid along with other municipal taxes, and certain deductions may apply, such as interest payments for a mortgage. |
| Are there any tax benefits for international students? | The Netherlands has tax treaties with many countries, including all EU member states, which may impact the taxation of scholarships. International students may also be eligible for certain benefits, such as rent allowance. |
| Are there any requirements for filing taxes, such as a bank account or BSN-number? | It is recommended to have a Dutch bank account to arrange finances, and a BSN-number (Dutch citizen service number) is required by employers. |
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What You'll Learn
International students with a job or internship must have a Dutch bank account
International students in the Netherlands are considered tax residents and are required to declare their sources of revenue. If you have a job or internship that pays a salary, you must have a Dutch bank account to arrange your finances. Your employer will need your BSN-number (Burgerservicenumber - Dutch citizen service number) to allow you to start working. This is a unique registration number used in contacts with any government service and can be obtained upon registration at the City Hall.
As a student, you only need to file a tax return if you receive a tax return letter and the amount you would have to pay is over €47. However, even if you do not receive a letter, it is beneficial to file a tax return as you may be owed money. You can file this income tax return via an app or the tax authorities' website. The Dutch income tax is divided into three categories, or "boxes", each with its own rate. Box 1 includes income from work and homeownership, box 2 includes financial interests in a company, and box 3 includes savings and investments.
If you are employed, you should receive a letter from the Belastingdienst (Tax Office) in February, inviting you to fill out your income tax return. If you are self-employed, you are still required to fill out a tax return but will not receive a letter. Your employer will withhold taxes and social insurance contributions from your gross wage. The minimum wage depends on your age, and you may be eligible for compensation to help cover the costs of your Dutch public health insurance. This compensation is called 'Zorgtoeslag' and can be read about on the website of the Dutch tax authority.
It is important to note that scholarships may be considered income and taxed accordingly. However, if you receive a scholarship from abroad and your country has signed a tax treaty with the Netherlands, your scholarship may not be taxed. The Netherlands has tax treaties with many countries, including all EU member states.
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Students are considered tax residents in the Netherlands
If you are a student earning an income in the Netherlands, you will need to file a tax return every year. This is an assessment of your financial situation, including your income, assets, and any deductions you are eligible for. You can file your tax return via an app or the Tax Authority's website. It is worth noting that in the Netherlands, you can file a tax return up to five years after the fact, and you may be entitled to a refund if you have paid too much tax.
If you are an international student, you may be eligible for an expat tax facility, and you can get assistance with your tax return from organisations such as Limes International, which specialises in cross-border taxation. You can also contact your employer's HR department for more information on your tax status and obligations.
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Scholarships may be taxed
In the Netherlands, the Dutch Tax Office (Belastingdienst) is responsible for collecting taxes. They provide information on their website about the tax system, tax rates, and any applicable tax credits or deductions. You can also use their online tools to file your tax return and calculate your taxable income.
As an international student in the Netherlands, it's important to understand your tax obligations, especially if you have a part-time or full-time job along with your studies. In general, if you are earning an income in the Netherlands, you will need to pay income tax. This applies to both residents and non-residents. Your employer will typically withhold income tax from your salary, which is known as wage tax and is part of your payroll tax. However, if you are self-employed, you will need to calculate and pay your income tax yourself through your annual tax return.
Even if you are not employed, it can still be beneficial to file a tax return. By doing so, you can determine if you are owed any tax refunds or if you are eligible for any tax credits or deductions. For example, you may be able to deduct part of your healthcare costs from your taxable income. Additionally, certain scholarships may provide tax benefits or exemptions, so it's worth reviewing the details of your scholarship package carefully.
If you are an international student with a scholarship in the Netherlands, it is important to stay informed about the tax implications. Consult official government sources or seek professional tax advice to ensure you understand your specific tax obligations and entitlements.
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Tax credits and reductions
As a student in the Netherlands, you may be entitled to tax credits and reductions. Tax credits are reductions in taxes, meaning you pay less tax. The amount of tax credit you receive depends on your income. For example, if your income is between €0 and €21,043, the general tax credit is €2,837. In 2025, the general tax credit is a maximum of €3,068.
If you are a resident taxpayer in the Netherlands, you may receive the contribution component and the amount of the reduction on income tax. If you live in the Netherlands for the whole year, you are entitled to the tax component of the tax credit. If you live in the Netherlands for part of the year, you are usually only entitled to the tax component of the tax credit for that time period. If you live abroad for the whole year, you are usually not entitled to the tax component of the tax credit, but you may qualify for some tax components.
If you are employed by a company, your employer will withhold your income tax from your salary. This is called wage tax and is part of your payroll tax. If you are self-employed, you have to calculate and pay your income tax yourself via the annual tax return. The payroll tax levy is made up of tax on your salary (wage tax), national insurance contributions for pensions, unemployment allowance, and other Dutch benefits and allowances.
The Dutch government levies taxes on several other areas, including imported goods, motor vehicles, inheritances, gifts, corporations, property and business transfers, and gambling. Sales or revenue tax (BTW) is also collected, with three different rates depending on the type of goods and services: 0%, mostly for travel and import/export goods and services; 9%, mostly for goods and services related to living and subsistence; and 21%, the most common rate for all other goods and services.
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Income tax is subdivided into three categories
Students in the Netherlands are required to file a tax return if they receive a tax return letter and the amount they owe is more than €47. However, even if you do not receive a tax return letter, it is beneficial to file a tax return, as you may be eligible for a refund.
In the Netherlands, income tax is the most common tax. It is calculated based on the revenue and assets declared on an individual's tax return. Income tax is composed of wage tax and social security tax.
- Box 1: Includes income from work and home ownership. This box is taxed at a progressive rate with four tax brackets. This means that if your income falls into four different brackets, your Box 1 income tax will be a sum of three different tax rates. Income in this box includes wages, business profit, grants, tax refunds, and deductions.
- Box 2: Includes financial interests in a company. This box has a flat taxation rate that applies after a certain value threshold.
- Box 3: Includes savings and investments. Like Box 2, this box has a flat taxation rate that applies after a certain value threshold.
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Frequently asked questions
If you are an international student in the Netherlands and have a job or internship that pays a salary, you need to pay income tax.
You need to file a tax return every year. You can do this via an app or the tax authorities' website.
Taxable income includes money from a job, internship, or scholarship.
