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Netherlands - Other taxes and levies

Netherlands - Other taxes and levies

Taxation of international executives


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Social security tax

Are there social security/social insurance taxes in the Netherlands? If so, what are the rates for employers and employees?

Employer and employee

The Dutch social security system consists of the National Insurance, the Employee Insurance and the Medical Insurance.

Type of insurance Paid by employer  Paid by employee Total
Unemployment Insurance Act 2.94 or 7.94% (depending on the duration of the contract) 0.00% 2.94 or 7.94% (depending on the duration of the contract)
Disability Act 8.55% 0.00% 8.55%
General Old Age Pensions Act 0.00% 17.90% 17.90%
General Surviving Relatives Act 0.00% 0.10% 0.10%
Long-term Care act 0.00% 9.65% 9.65%
Health Insurance Act 6.70% 0.00% 6.70%
Total 18.19 or 23.19% 27.65% 45.84 or 50.84%

The National Insurance is comprised of the following contributions:

  • General Old Age Pensions Act (AOW): 17.9 percent, maximum EUR6,213.45
  • General Surviving Relatives Act (ANW): 0.1 percent, maximum EUR34.71
  • Long-term Care Act (WLZ): 9.65 percent, maximum EUR3,349.71

The Employee Insurance is comprised of the following contributions:

  • Unemployment Insurance Act (WW)
  • Disability Act (WIA and Whk).

Depending on the employee’s profession and duration of the employment contract, different rates may apply when calculating Employee Insurance contributions. The above percentages are average percentages for the Employee insurances.


  • WW: 2.94 or 7.94 percent, depending on the nature of the contract. As of 1 January 2020 there are two different contribution rates: 2.94 and 7.94 percent. The lower rate is applicable to employees with a contract of indefinite duration, the higher rate on employees with a temporary contract.
  • WIA and Whk: with an average of 8.55 percent the maximum will be EUR4,893.24.
  • Health insurance Act: 6.70 percent maximum EUR3,834.54.

Medical insurance

Per 1 January 2006, the Health Insurance Act is applicable. The insurance premium consists of a nominal contribution (on average EUR1,415 per year, to be paid by the employee) and a means-tested contribution. The means-tested employer contribution is 6.70 percent of the income for contribution purposes (capped at EUR57,232, that is, EUR3,834.54 per year) and is an employer’s contribution.

Calculation of social security liability for the employee in sample calculation above

National insurance (levied together with income tax, before deduction of tax rebates) 9,597

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in the Netherlands? 

Gift and wealth taxes

Gifts made by a resident of the Netherlands are basically taxed at the same rates as net assets inherited from the estate of a resident, although the tax-free limits may differ depending on the recipient of the gift. In certain situations gifts made by former residents of the Netherlands are also taxed. Resident persons who benefit from the 30 percent ruling are subject to the tax like any other taxpayer.

There is no wealth tax in the Netherlands. However, wealth is taxed in Box 3 of the Dutch income tax.

Inheritance tax

Inheritance tax is levied on the net assets inherited from a person who is a resident of the Netherlands (this includes persons who benefit from the 30 percent ruling) or who died as a Dutch citizen within 10 years of leaving the Netherlands. The inheritance tax imposes less of a burden on close family members compared with that imposed on distant relatives or unrelated persons.

Real estate tax

Are there real estate taxes in the Netherlands?

Real estate tax is assessed by the municipality on the occupier of real property and is based on the value of the property. The rates vary from town to town.

Sales/VAT tax

Are there sales and/or value-added taxes in the Netherlands?

Sales tax

There is a sales tax on the transfer of Dutch real estate (this real estate transfer tax is 6 percent for commercial real estate and 2 percent for residential property).

Value-added tax (VAT)

The normal VAT rate is 21 percent. For certain goods and services other rates apply (9 percent or 0 percent).

Other taxes

Are there additional taxes in the Netherlands that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax,and so on. 

Local taxes

There are several local taxes assessed by the municipality, for instance waste tax, sewage charges, and dog tax.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g., foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?



All information contained in this publication is summarized by Meijburg & Co Tax Lawyers, the Netherlands member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Dutch Personal Income Tax Act 2001 and the Dutch Wage Tax Act 1964. These laws can be found at

© 2021 KPMG Meijburg & Co., a Netherlands partnership and a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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