Netherlands
Top Income Tax
49.5%
Marginal rate
Corporate Tax
25.8%
Standard rate
VAT / Sales Tax
21%
Standard rate
Capital Gains
33%
Standard rate
Overview
The Netherlands offers a business-friendly environment with the famous 30% ruling for expat workers. Corporate tax rates are competitive with the Innovation Box regime. Amsterdam and Rotterdam are major international business hubs.
Income Tax Brackets
| Income Range (EUR) | Tax Rate |
|---|---|
| 0 - 75,518 | 36.93% |
| 75,518+ | 49.5% |
Two-bracket system. Box 2 (substantial interest) at 24.5% up to 67k, 33% above.
Corporate Tax
Standard Rate
25.8%
Small Business Rate
19%
19% on first 200k EUR profit. 25.8% above that.
VAT / Sales Tax
Standard Rate
21%
Reduced Rates
9%
9% reduced rate on food, water, medicines, books, hotels.
Capital Gains Tax
Standard Rate
33%
No capital gains tax on Box 1 (employment). Box 2 substantial interest: 24.5-33%. Box 3 deemed return taxed at 36%.
Social Security Contributions
Employee
27.65%
Employer
18.15%
Self-Employed
27.65%
Employee contributions are combined with income tax. Includes AOW, ANW, Wlz.
Special Tax Regimes
30% Ruling
Tax-free allowance of 30% of gross salary for first 5 years (capped at max 27% of salary from 2024).
Eligibility: Must be recruited from abroad, have specific expertise, and meet minimum salary threshold of ~41,954 EUR.
Innovation Box
Effective 9% tax rate on profits from qualifying innovative activities.
Eligibility: Must have qualifying IP (patents, R&D certificates).
Pros & Cons
Pros
- 30% ruling for expat workers
- Innovation Box 9% rate
- Excellent business infrastructure
- English widely spoken
Cons
- High personal income tax (49.5%)
- No digital nomad visa
- Box 3 deemed return tax
- High cost of living
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Netherlands is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Netherlands government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.