Investors living in The Netherlands

How is that easier than just tax anything that is more than an x amount of money. Total amount (including capital gains) below 33k in 2020? Not taxed.

Tax in The Netherlands is actually really simple with the system. There are many schemes to follow but you as a resident don’t have to do anything. You declare everything you have and they tell you the difference of taxes you paid and tax to still pay. That’s it.
Everything is done on the website so no need of paying someone and every dutch entity and most of European financial entity already communicate the informations to the tax authority and you only have to check if numbers are correct and maybe add what is missing.
As an employee I think it’s the easiest system possible. Then if you make money other than your employer is different but that is another story.

I was being ironic about the Portuguese Tax System, that they tax everything, by not giving any tax allowance, so they don’t do any complex discrimination and calculation. They don’t give us a break. :slight_smile:

1 Like

Hi there,
Doing the Tax Return in I found that I have to tick the box that says that I had ‘Investments’ (Beleggingen) and ‘Other Investments’ (Overige bezittingen) eg. bitcoin.
Next is showing this (it’s translated automatically):

I don’t know how to get the information to fill up the empty boxes. Where can I find this?

  • Withheld Dutch dividend tax (Ingehouden Nederlandse dividendbelastinghelp)

  • Country / Foreign tax / Dividend e.d. (Land / Buitenlandse belasting / Dividend e.d.)

I sold some stocks in 2020 and received small dividends (account value less than 6k).

Thank you.

The first one is paid dividend taxes in The Netherlands. If you live in The Netherlands and you have Dutch companies, there will be no taxes withhold from dividends. Dividend taxes is only applied to foreign investors.

The second one you have to specify per country how much taxes were withhold. So for US stocks, but also for German stocks if you would have them.

Thanks for the reply.
So if I live in the Netherlands and I own only US stocks,
then in Withheld Dutch dividend tax is 0?
and foreign tax is the addition of all tax charged by the US (15%) on dividiends?
what is Dividend e.d.?

Still don’t get how to do it.

Yes. You don’t own Dutch stocks and haven’t received any dividends and thus haven’t paid any dividend taxes in The Netherlands.

The 15% dividend taxes deducted for US stocks, you can add them all together and fill them in the second. I guess you fill in the paid 15% div tax in the first and received divs in the second column. Should be somewhere in the help or ? icon?

How are those actually defined? Amsterdam listed companies, dutch headquartered/Dutch-domiciled companies?

For example:
LyondellBasell N.V. has ISIN: NL0009434992 and is incorporated in the Netherlands, but doesn’t trade in Amsterdam (trades on nyse) and is a member of the S&P 500.

Very interesting question. Although you are speaking about Dutch Taxation, this theme is also on Portuguese Taxation.

For example, all major Portuguese companies have their mother holding company in Netherlands (for taxation reasons), they are traded mostly on the Portuguese Stock Exchange (some companies have a secondary listing on other countries) and they are part of PSI20.

Some of that companies have more revenue for outside of Portugal (for some of them, Portugal revenues are now residual comparing to foreign revenues).

So they are Portuguese or Dutch companies? Our Tax Authority consider them as Portuguese Stocks, probably because they are traded on Portuguese Stock Exchange.

1 Like

When it pays dividends, what is withholding tax rate? The Dutch tax rate or US tax rate?

both 15%, in the annual income tax statement we get back the dutch paid taxes though and the US paid dividend taxes get subtracted from the wealth tax that we have afaik.

You are taxed twice 15% (15% on US and 15% on Netherlands), being 15%+15%?

Or is like in here, US stocks is 15% withhold, Portuguese taxation is 28%, in the annual declaration, the tax authority does the difference calculus, 28%-15% = 13%, the amount we owe to our national tax authority.

not taxed twice, more like your situation where 15% is withheld but then I have to fill in where I paid it and then I get it back or I can subtract it from certain taxes.

OK, is very similar.
EU is always talking about creating tax harmonization. For example, there is an EU rule that allows all the European investors to deduct 50% of European companies dividends, so we are only taxed in 50% of the dividends of that companies.

Companies listed on Euronext Amsterdam and pay dividends in The Netherlands I guess. I own Randstad for example.They pay dividends in The Netherlands, so I shouldn’t pay any taxes on dividends.

No. Normally US has 30%. But since they have a tax treaty with The Netherlands and T212 automatically generates a W-8BEN form, you only pay 15% in the US. Without a W-8BEN form you would pay 30%.

If you were taxed 30% in US, you could reclaim the difference from the Dutch Tax Authority, receiving the 15%, because in Netherlands you should only pay 15%?

I created a dedicated Topic about this theme, as I think it affect all European countries.

In the Netherlands the dividend tax is 0% for dutch citizens.

If you were taxed 30% in the US then:
1- the W8BEN reduces that to 15%
2- you get the 15% back from the dutch tax authorities. 15% is also the max % you can get back.

A few years ago I had LYB which has a NL isin and no tax was deducted from the LYB dividend.

BASF for example has a DE isin and has a german dividend tax around 20%. From the dutch tax office you get 15% back and everything over 15% you have to get back from Germany yourself.
Not all German companies have a dividend tax over 15%, DT last time they paid dividend had a zero tax %.

I am not aware of general rules for the company div tax percentage. French companies also have div tax over 15%, which you need to reclaw yourself, which is a hassle.

1 Like

In the Netherlands does a tax resident need to pay taxes on a profit from a buy low sell high gain of a US stock?