How does child benefit affect qualification of mortgages

(Qualified) foreign tax liability

If you do not live in the Netherlands, you are in principle a foreign taxpayer. Under certain circumstances, you can obtain qualifying foreign taxpayer status. You can then take advantage of tax advantages such as deduction items (including deduction of mortgage interest) and tax reductions for the tax part.

As of 2015, as a qualified foreign taxpayer, you have only been entitled to deductible items and tax reductions if you meet the following conditions:

  • You are resident in an EU country, Liechtenstein, Norway, Iceland, Switzerland, Bonaire, Sint Eustatius or Saba.
  • You pay at least 90% of your worldwide income tax in the Netherlands.
  • You can submit an income statement dated Tax office submit.

Foreign tax liability (see limited / unrestricted tax liability)

Do you not qualify as a qualified foreign taxpayer? Then you are not entitled to deductible items and tax reductions for the tax part. In this case, the tax authorities only levy taxes on your Dutch income. This calculation does not take into account your income on which the Netherlands is not entitled to levy taxes. Does your partner have little or no income? Then he does not receive (partially) the general tax reduction.

Not a partner in the tax sense

You cannot have a partner for tax purposes if you are a foreign taxpayer. So in the Netherlands you only pay tax on your own income in or from the Netherlands and your own part of your assets (property minus debts) in the Netherlands. For example, are you in an employment relationship? Then the wages are your income. Does the property belong to more than one person? In this case, you will pay tax on the part that is your property.

Example:
You are married as part of a community of property. You and your spouse share a holiday home in the Netherlands. You are each 50% owner of this apartment. For the calculation of your tax, the share of 50% of the value of this apartment in box 3 is taken into account.

No entitlement to tax reductions and deduction items

Most of the time, if you are a foreign taxpayer, you are not entitled to:

  • the income tax-related part of the tax cuts
  • personal allowance
  • Deduction of expenses for income reserves

Reduction in social security contributions

Are you compulsorily insured in the Netherlands, for example for your AOW? Deduction items and tax reductions are then taken into account when calculating the national insurance contribution.

Qualified foreign tax liability

Do you meet the conditions for qualifying foreign taxpayer treatment? The tax authorities only levy taxes on your Dutch income and any property you own in the Netherlands. This calculation does not take into account your income on which the Netherlands is not entitled to levy tax. This income is only relevant to determining whether you meet the conditions.

As of 2019, the tax part of the tax reductions for people who do not live in the Netherlands is no longer automatically applied. To take advantage of this, you must file a tax return at the end of the year. You can also apply for a provisional assessment during the year. Please contact for more information here.

Deduction item

You are entitled to the same deductible items as a resident of the Netherlands. But only if you or your (tax) partner are not entitled to it in your country of residence. The items you are entitled to are:

  • the negative income from your own home outside the Netherlands
  • expenses for income reserves
  • the personal allowance

Do you have a tax partner? And does your tax partner have little or no income? Then the tax reductions can be paid out to your partner. You can also distribute the deduction items among each other.

Conditions for qualified foreign taxpayers in a tax partnership

You and your partner are both qualified foreign taxpayers if the following conditions are met:

  • You and your partner live in an EU country, in Liechtenstein, Norway, Iceland, Switzerland, on Bonaire, Sint Eustatius or Saba
  • You and your partner pay tax in the Netherlands on at least 90% of their joint income. This is only the case in the following situations:
    • You pay tax in the Netherlands on at least 90% of your worldwide income and your partner has little or no income
    • You and your partner both pay tax in the Netherlands on at least 90% of global income
    • You and your partner can submit an income statement dated Tax office submit

Tax cuts

You are entitled to the tax reductions that apply in your situation. If you have social security in the Netherlands, you are entitled to the contribution part and the tax part of the tax reductions.

Duty-free property

Do you have income from savings and investments for which you have to pay tax in the Netherlands? Then you are also entitled to the tax-free allowance.

give an explanation

To submit a declaration, you need a declaration of income that is stamped by the German tax office. German-language income statement 2017, German-language income statement 2018, German-language income statement 2019, German-language income statement 2020.

additional Information

(Text mostly taken from the tax authority's website.)