Reader question: Filing tax returns in the Netherlands

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March 3 2020

Dear readers,

It's March and we have to file tax returns in the Netherlands again. I married a Thai girl last year, but she still lives in Thailand and I live in the Netherlands until my retirement.

Because she comes to the Netherlands every 3 months, her boss does not want her back and a new boss cannot be found on this basis. So I have to support her because she has no income. Now I have already understood that she will not be my tax partner in that case, but that also means that I cannot state any deductions in any way.

Does anyone have experience with this because on the tax authorities site I don't get very far with these kinds of questions?

Thanks in advance.

Regards,

Eric

18 responses to “Reader question: Doing tax returns in the Netherlands”

  1. Liam says up

    Hi Eric,
    If your girlfriend applies for a residence permit, she will receive a BSN number. You can then formally start living together in NL and enjoy the fiscal pos/neg consequences.
    If each of you keeps your own country of residence, the respective tax advantages and disadvantages apply.
    There are no deductions if you have someone visiting from abroad. Might be a bit logical.

    Regards, Liam

    • Jasper says up

      Liam, it's his wife, not a girlfriend. She does not work in Thailand, and therefore does not pay any taxes. She cannot apply for a residence permit without first passing the integration exam in Bangkok (quite tough) and Eric must meet the financial standard.

      His wife is financially dependent on him, and he is obliged - also by Dutch! law - to support her, whether she lives here or there. If that were in Spain, for example, all costs would have been deductible. Is it a foreign country?

      For the tax authorities you are considered unmarried if you live outside the EU, which yields more money. And is very unfair.

      • Liam says up

        Sorry Jasper, you are right, it clearly states that he is married. Sloppy, it would never happen to me otherwise 😉 . You may find the conclusion unjust, but it also becomes very complicated if one person can wait to retire and the other cannot and all the other variables that are possible. The many rules also encourage abuse. I really hope that Eric can retire very soon and stand by his dear wife like a real man. But... you don't count yourself rich anymore with that pension from the Netherlands, do you? Greetings.

  2. adje says up

    what items would you like to deduct? Do you support your wife? Haha. Of course you can't. If the marriage was registered in the Netherlands, you could possibly deduct interest on debts. But that must be a considerable amount because there is a threshold. I wouldn't know anything else.

  3. Jasper says up

    To get straight to the point: it does indeed mean that you cannot state deductions in any way. All options that were available (general tax credit, asset exemption, child benefit) have been carefully killed under Rutte. She is also not a non-resident tax resident, and for tax purposes you are considered unmarried simply because your spouse is outside the European area (and its exceptions).

    The bottom line is that in my case I am not allowed to use her financial exemption of more than 30,000 euros on our joint assets, that I am allowed to contribute to the child benefit for other Dutch people, but do not (any longer) receive it for my son in Thailand. The tax credit may not (any longer) be transferred.
    At the same time, you do have a maintenance obligation towards your wife because you are married.

    They couldn't make it more fun in the past 10 years.

    • winlouis says up

      Exactly the same for Belgium, since my Thai wife and our 2 children went back to live in Thailand, after 7 years in Belgium, I became single for tax purposes, I can no longer declare my children as dependents, also no more child money .!!

  4. John says up

    Two questions before you can expect a sensible answer.
    1. Is it a legal marriage that is also recognized in the Netherlands?
    Second question: is your tax residence the Netherlands or Thailand? In other words, you are in Thailand for at least 180 days per calendar year. And of course your income is pension? And where and on what do you pay tax now.

    • Jasper says up

      Dear John, a marriage in Thailand is a marriage in the Netherlands. Otherwise he would have indicated that he only married before Buddha.
      You are even obliged to declare this in the Netherlands.
      In terms of tax residence, Eric indicates that he lives in the Netherlands and does NOT yet receive a pension.
      So he now pays tax in the Netherlands on his activities in the Netherlands.

      It's all in his story.

      And now I would like a sensible answer from you.

  5. Lammert de Haan says up

    Hi Eric,

    You live in the Netherlands and your wife lives in Thailand. You are a resident taxpayer. Since your wife, I assume, does not have any income to be taxed in the Netherlands, your wife is not even a (non-qualifying) non-resident taxpayer and therefore not liable for Dutch income tax.
    This means, as you yourself have already indicated, that you are not tax partners.

    You only report for yourself. You cannot apportion deductible items among yourselves. But I don't think that matters either since you, I assume, have the highest income. In addition, you cannot claim deductible items for personal obligations for your wife, as you are not tax partners.

    There is of course no question of a deduction for a contribution to your wife's living expenses. After all, this also applies to a couple living in the Netherlands, where only one of the two is the breadwinner.

    You can read more about this at:
    https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/internationaal/internationale-belastingregels/fiscale-partner/fiscale-partner

  6. Martin says up

    john,

    Your second question is irrelevant. He lives in the Netherlands until his retirement. Which implies that he wants to move to Thailand after his retirement. Moreover, if you work in the Netherlands you cannot stay in Thailand for 180 days.

    • Rik says up

      Why not, maybe he only works 6 months a year in the Netherlands.

  7. john says up

    Dear awake readers, some of you have criticized my response to this topic. Justifiably. I just didn't read it properly. But it is good that we have all arrived at the right answer. Stay alert to incorrect responses. Thanks!

  8. Ralph van Rich says up

    Dear people, I had another probing question and that is this,
    when he moves to Thailand after his retirement, he will also be reduced with his AOW
    in connection with cohabitation

    Ralph

    • Lammert de Haan says up

      As soon as Eric is entitled to state pension, he will of course receive a reduced state pension as a married person, Ralph.

      And if Eric brings his pension forward, so before he reaches state pension age and then leaves for Thailand, he will be cut by 2% per year as a result of this emigration.

      However, I assume without further ado that Eric is aware of this.

    • Erik says up

      Ralph, no discount; he will receive a different, lower benefit, although many people will feel that this is a discount... You can see the gross amounts on the SVB website.

    • Jasper says up

      That's right, and that's true even if he's not married. There is an effective search in Thailand for Dutch people with state pension who indicate that they live alone. Has a special desk for that.
      These people are unexpectedly visited, and the neighbors are discussed whether the Dutch gentleman has a relationship. Upon discovery, recovery and a high fine will follow.

      What is really unjust is if one continues to live in the Netherlands, and the Thai partner in Thailand. In our case, due to circumstances, it looked for a long time that this would be the case. There would then be nothing left for us but to divorce, so as not to become completely beggarly.

      • Lammert de Haan says up

        There is indeed “effective research in Thailand” as you write. Even employees of the SVB visit Thailand from time to time (their "candy trip").

        To this end, the Netherlands has concluded an Enforcement Treaty with Thailand, which means that Thailand also ensures that the right to benefit is observed (enforced).

        And let people be happy with that, because without the Enforcement Treaty, the current country of residence factor of 0,4 would apply to social security benefits.

  9. adje says up

    He is not reduced but receives a benefit if he is married. That is less than a benefit for a single person.


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