Attractive Benefits of Moving to the Netherlands
For individuals considering relocating from Turkey to the Netherlands, this country offers a range of appealing advantages. High living standards and tax benefits provided to newcomers significantly enhance this attractiveness. Particularly, the tax reductions available in the Netherlands make living there even more appealing. Individuals with work and residence permits can benefit from these tax reductions to enjoy a more comfortable life.
What is an Expat?
The term "Expat" (Expatriate) refers to individuals who live and work outside their country of birth. People born in Turkey who move to and work in the Netherlands are considered Expats. However, to achieve this status, certain criteria must be met. Specifically, individuals classified as highly skilled professionals are eligible for this status.
What is the 30% Tax Ruling?
In the Netherlands, individuals with Expat status can benefit from a 30% tax reduction. This reduction is offered in recognition of the high living standards and the challenges associated with adapting to a new country. The tax reduction helps alleviate costs related to renting a new home, purchasing items, and settling into the new environment.
Conditions for Tax Reduction
To qualify for the tax reduction, certain conditions must be met:
- Employment in the Netherlands: You must have moved to the Netherlands for work. Your employment contract must be signed before your arrival in the Netherlands. It is not possible to benefit from this reduction if you move to the Netherlands and then search for a job.
- Proximity to the Netherlands: You must be residing more than 150 kilometers away from the Dutch border. This is a fundamental criterion for eligibility.
- Salary Level: To qualify for the tax reduction, your annual salary must exceed a specific threshold. For individuals under 30, the threshold is 40,500 Euros, while for individuals over 30, it is 55,500 Euros.
Duration of the Tax Reduction
The tax reduction is valid for 5 years. Previously set at 8 years, this period was reduced to 5 years starting in 2019. You can benefit from this reduction for 5 years from the date you obtain your work and residence permit.
Application Process
Applications for the tax reduction are made after you have started working. Initially, you may not benefit from the tax reduction; some companies cover the excess payment during this period, but this is not always the case. The application process is generally handled by your company. Application forms are completed and submitted with the help of company representatives. The approval process takes approximately 1-2 months. Once your application is approved, any excess taxes paid will be refunded to you.
