Living in the Netherlands: residency depending on circumstances, three parking spaces and national insurance

In the Netherlands, income tax is divided into three categories, known as "boxes": employment and housing, shares of at least 5,130,000 in a company, and savings and investments. Residency is assessed on a case-by-case basis: the article of the General Tax Law that defines it does not specify a minimum number of days. This page presents the 2026 figures from the Dutch tax authorities and explains what is not covered.

Resident or non-resident: an assessment based on the circumstances

The Dutch General Tax Act (Article 4) stipulates that a person's place of residence is determined according to the circumstances. The Income Tax Act (Article 2.1) subjects individuals who reside in the Netherlands to taxation, as well as those who do not but receive Dutch income there. The Dutch Tax Administration (Belastingdienst) refers to the former as "resident taxpayers" and the latter as "non-resident taxpayers." Both are generally required to file a tax return annually.

An option exists for non-residents living in a European Union country, or in another country with which the Netherlands has a tax treaty, and who do not live in Switzerland. They can apply for resident status: they then declare their worldwide income and use tax credits and deductions. The page describing this option dates from October 2023.

If both France and the Netherlands consider you a resident, the convention of March 16, 1973, in its Article 4, paragraph 3, distinguishes between the following: permanent home, center of vital interests, habitual residence, nationality, and then agreement of the authorities. Our page on the convention provides further details.

Upon arrival, the municipality registers you and assigns you a citizen service number. The Belastingdienst (tax office) then records that you become a resident taxpayer. For the year of arrival, they offer the option of filing a tax return (form M), either online or on paper.

Box 1, box 2, box 3: what each basket covers

Box 1. The rates above apply to individuals who have not yet reached basic pension age (AOW). In the first bracket, the Dutch Tax Administration (Belastingdienst) details 8.10 % of income tax and 27.65 % of national insurance contributions. The consolidated version of the Income Tax Act (21/02/2026) announces several future amendments, including one on 1 January 2027 for the rates in Box 1; we have not reviewed these. Salary paid by your own company falls under Box 1, not Box 2. Dutch tax credits are not included on this page.

Box 2. A company director who owns at least 5 % shares in their company, alone or with their tax partner, receives their dividends and capital gains from the sale of their shares. The income tax law (article 2.12) maintains the same rates.

Box 3. The Belgian tax authority (Belastingdienst) taxes a notional return, not the actual return. For 2026, it publishes standard returns that it describes as provisional. The exemption is €59,357 per person, and €118,714 with a tax partner. The website states that it is possible to declare the actual return instead of the standard return. We are not including the standard returns: the tax authorities present them as provisional.

Executive with €120,000 in dividends: a numerical example (fictitious profile)

Situation. A fictitious executive, resident of the Netherlands, owns 100 % shares in a Dutch company. He pays himself a salary of €80,000 and a dividend of €120,000.

Issue. He wants to know how the two incomes are divided between the boxes and what the 2026 scale produces.

Strategy. It classifies the salary in box 1 and the dividend in box 2 (participation of at least 5 %). It then applies the brackets of each box.

Result. Box 1: €29,532 out of €80,000. Box 2: €32,725 out of €120,000, with 24.5% tax credits up to €68,843 and 31% tax credits on the remaining €51,157. Total: €62,257. These amounts are before tax credits, which we have not reviewed. The profile and amounts are fictitious.

Foreign income: a capped tax relief

The resident declares their worldwide income. The Dutch Tax Administration (Belastingdienst) states that one cannot pay tax twice on the same income. The tax relief cannot exceed the Dutch tax due, and any excess is carried forward to subsequent years. If the tax treaty grants the Netherlands the right to tax the income, there is no tax relief, and the resident must request a refund of the tax levied from the foreign country.

Regarding the tax treaty, Article 24 governs the tax relief. For France, income taxable in the Netherlands is generally exempt, with the tax rate being taken into account, except for dividends, interest, directors' fees, and artists' income, which qualify for a tax credit. For the Netherlands, Article 24A stipulates that the tax calculated according to paragraph 1 gives rise to a deduction of a portion (the wording should be reviewed in full). Rental income from a property located in France remains taxable in France.

National insurance and health insurance

Your place of residence largely determines your national insurance coverage. Residents of the Netherlands are insured under the following national schemes: basic pension (AOW), survivor's pension (Anw), and long-term care (Wlz). An exemption must be requested from the SVB (Swiss Federal Social Insurance Fund) and is not granted automatically.

The CLEISS (2022 edition of its factsheet) specifies that basic health insurance is mandatory with an insurer of one's choice, and that everyone insured with the Wlz must take out this insurance. The amounts in this factsheet are from 2022: we are not using them.

What this page does not cover

Dutch tax credits, flat-rate returns from Box 3, Dutch life insurance and accounts, inheritance tax, and Dutch withholding tax on dividends are not covered here. The 30 % scheme for employees recruited abroad is described on our page about moving from France to the Netherlands.

What changes depending on your situation

• The date of your registration with the municipality and the links you maintain in France.
• The portion of your income that relates to each box.
• Your age in relation to the basic pension, which modifies the rate of the first bracket.
• Holding at least 5 % shares in a company.
• Receiving income from France: rents, dividends, pensions.

The rule depends on your situation. No results are guaranteed.