The 30% tax ruling is a special benefit for expat workers in the Netherlands. Usually, it’s only for the main worker, not their partner. In case you have received a tax-ruling, your partner doesn’t get this benefit automatically. They have to fit the eligibility criteria themselves, which is often not the case if they moved with you, and only then started looking for a job (meaning they were not hired from abroad).
But here’s some good news. Your partner, even if they are not eligible or are Dutch, can still get some advantages from your 30% tax ruling.
In the Netherlands, you can combine your incomes for tax purposes, especially if you are married, in a registered partnership, or meet certain conditions like living together or having kids. They call this “fiscal partnership.”
Another, not so bad benefit is that, your partner can change their foreign driving license to a Dutch one without needing to retake the driving tests, which is a significant benefit as well.
In the Netherlands, they have a simple way to categorize different types of income and how they’re taxed. They use three “tax boxes.”
|1||This is where your income from your job or business goes. It also includes the income you make from your own home if you rent it out.|
|2||This box is for the money you earn from owning a significant part of a company, like if you have a big share in a business. The tax rate here is often lower than in Tax Box 1.|
|3||In this box, you report your income from savings, investments, and other assets you own. The government doesn’t tax the actual money you have in these things but calculates a percentage of your total assets and taxes that.|
So, in simple terms,
- Tax Box 1 is for your job and home income;
- Tax Box 2 is for income from owning a big part of a company, and;
- Tax Box 3 is for income from your savings and investments. Each box might have different tax rates and rules, so it’s important to understand how they work for your financial situation.
If both of you are considered fiscal partners and you’re eligible for the 30% ruling, you can avoid paying taxes on your savings and investments (Box 3) and income from substantial interest (Box 2). Your partner can even give their savings and income from substantial interest to you, and those savings won’t be taxed either.
So, it’s one more reason to propose to your foreign partner. The Dutch are known for being good at sharing and managing their money. But we’ll let you discover that for yourself. 😉💍💰