Netherlands

The Kingdom of the Netherlands is made up of its mainland in Northwest Europe the Caribbean islands of Aruba, and Curacao, and half of the island of St Maarten (Sint Maarten). There are also three special municipalities that are part of the Netherlands. And these are the islands of Bonaire, Sint Eustatius, and Saba, also in the Caribbean. 

Aruba, Curacao and Sint Maarten are not part of the Netherlands-proper, but they are part of the Kingdom. However, Sint Eustatius, Bonaire, and Saba are part of the Netherlands-proper and are known as the Caribbean Netherlands. The countries that form the Caribbean part of the Netherlands have their own separate tax systems. 

The Netherlands operates a parliamentary democracy in a common law system, headed by a constitutional monarch.

With Amsterdam as its capital, the governmental and parliamentary seat can be found in The Hague. The official language is Dutch, and the currency is the euro (EUR) – a currency the Netherlands helped introduce in 1999 as a founding member of the EEC, later known as the European Union (EU). They are also a founding member of NATO and the Organisation for Economic Cooperation and Development (OECD).

The Netherlands is an influential European transportation hub, notable for its stable industrial relations and enviable unemployment and inflation levels. Professional services play a huge part in the economy, as does the exportation of agricultural products. 

Industry centres around chemicals, petrol refinery, electrical machinery, and food processing. Agriculture in the Netherlands is highly efficient due to mechanisation, producing large surpluses for export, despite employing only 2% of the labour force.

The origins of the Dutch legal and tax system can be traced back to varied influences over the centuries. Their civil code, for example, was designed by the French during a period of occupation in the 19^th century. And the Romans introduced property taxes during the 450 years the country remained part of the Roman Empire. Today, many aspects of Dutch tax laws come from EU legislation.

Although part of the Netherlands-proper, Bonaire, Saint Eustatius and Saba have a different tax regime from the European mainland. Any inter-Kingdom matters are regulated through a tax scheme known as a Belastingregeling.

Our local Tax Natives in the Netherlands can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we’ll link you with a local expert who can answer all your questions. 

THE HEADLINES

• The corporate income tax rate in the Netherlands is 25.8%
• In the Netherlands, the headline personal income tax rate is 49.5%
• The standard VAT rate is 21%