The Netherlands tax wealth rather than income: in Box 3 a deemed return is charged at 36 percent whether the portfolio rose or not. Arriving specialists get the 30 percent ruling; flats in Amsterdam are almost impossible to find.
The short answer
High wages, high prices, a housing market in crisis. Good for employees with the 30 percent ruling for tax, unfavourable for investors with large portfolios.
milinia’s take
- 30 percent ruling: 30 percent of salary tax-free for five years for arriving specialists, cut to 27 percent from 2027.
- Box 3: wealth above €57,000 is charged a deemed return of around 6 percent on investments at 36 percent tax, so roughly 2 percent of the portfolio a year.
- Mortgage interest is deductible; the home is taxed in Box 1 with an imputed rental value.
- Housing shortage: open-market rentals in Amsterdam from €1,700, social housing waiting lists over ten years.
Living and costs
Five percent above Germany, housing 30 to 50 percent above. A one-bedroom flat in central Amsterdam costs €1,700 on the open market, in Utrecht €1,300, in Rotterdam €1,200, in Eindhoven €1,100. Wages are high; the median sits around €3,400 net with holiday pay. Groceries slightly dearer, restaurants noticeably, bicycles free.
Taxes
The box system: Box 1 taxes work and the home at 37 percent up to €76,000 and 49.5 above, including social contributions. Box 2 covers substantial shareholdings at 24.5 to 33 percent. Box 3 is the wealth tax on savings and investments: above the allowance of around €57,000 per person a deemed return is assumed, around 6 percent for investments and around 1.5 for savings, and taxed at 36 percent. A portfolio of €300,000 therefore costs around €5,200 of tax a year regardless of actual return. After court rulings the actual return may be evidenced; from 2028 a new system based on real returns arrives. The 30 percent ruling exempts around 30 percent of salary for five years for arriving specialists with a minimum salary and frees them from Box 3 on foreign wealth.
Property
Amsterdam €8,000 per square metre, Utrecht €6,000, The Hague €5,000, Rotterdam €4,800, rural regions €3,000 to €4,000. Transfer tax 2 percent for owner-occupiers, 0 percent for first-time buyers under 35 up to €525,000, 10.4 percent for investors. Mortgage interest is deductible in Box 1 while an imputed rental value of around 0.35 percent of the property value counts as income. Financing up to 100 percent of value possible. Rental yields 4 to 5 percent, regulated by the points system up to €1,200.
Gold, portfolio, bank
Investment gold VAT-free but captured as wealth in Box 3. German brokers keep serving Dutch residents. A Dutch account needs the BSN number.
What emigrants underestimate
Box 3 hits pensioners and savers who would pay hardly any tax on their portfolio in Germany. And the housing market: without an employer arranging a flat, entering Amsterdam is a full-time job. Health insurance is privately organised and mandatory, around €150 a month plus an excess.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Does the 30 percent ruling apply to everyone?
Only to employees recruited from abroad with a minimum salary of around €46,000 who lived more than 150 kilometres from the border and apply together with the employer.
How is the German pension taxed?
Statutory pensions above €15,000 a year are taxed in Germany, below that in the Netherlands; company pensions depending on the treaty.
Is there inheritance tax?
Yes: spouses around €800,000 allowance, children around €25,000, then 10 to 20 percent for children, up to 40 percent for others.
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