Make sure you keep your tax bill as low as possible by using the wide range of deductions available as best you can. Now tax return time is with us again, here’s an overview of the main tax deductibles in the Netherlands and how they work. 

How do tax deductions work?

A tax deductible is an expense you are allowed to subtract from your taxable income. This lowers the total income on which tax is calculated, meaning you may ultimately pay less tax.

The expenses which you can include in your 2025 tax return must have been made in 2025. Some expenses can be used in different tax categories, but they may never be deducted twice.

You do not need to submit invoices or receipts with your tax return, but you must keep them for at least five years, as they may be requested later. And if you’ve missed a deduction in the past, in many cases, you can still correct your tax return for up to five years. And if it all seems too confusing, ask the specialists such as TaxSavers for help! That’s what they are there for.

1.    Healthcare and medical expenses

Medical related costs are deductible only under strict conditions:

• Own risk (eigen risico) payments are excluded
• Expenses must be paid in the correlating tax year
• The total costs must exceed a threshold which relates to your income and family situation. Ask your tax advisor for more information.

You can include expenses for your tax partner, children under 27, and dependent parents or relatives living with you.

2.    Charitable donations

Donations to registered charities can be deductible if:

• You have proof (bank statements or written confirmation)
• The charity must be recognised as an ANBI or SBBI organisation
• You must donate at least 1% of your income (with a minimum of around €60) to qualify

3.    Commuting costs

Commuting costs may be deducted from your income statement if:

• Your one-way commuting distance exceeds 10 kilometres
• Your employer has not paid your travel expenses – you can only deduct what was not compensated
• You can provide proof, such as public transport company invoice or a payslip

4.    Home ownership and mortgage interest

If you own a home in the Netherlands:

• The imputed rental value (eigenwoningforfait) – a tax on home ownership – is calculated automatically in your tax return
• Mortgage interest is usually pre-filled by the tax office as well
• Additional deductible financing costs (such as advisory or notary-related costs) must be entered into the system manually

5.    Annuities and supplementary pension savings

An annuity is a periodic payment in the future and is built up through annuity insurance, an annuity bank account or an annuity investment. Contributions may be deductible under some conditions, including:

• The annuity was taken out with an approved financial institution
• The annuity entitles you to periodic (fixed and regular) payments
• The payout based on a pre-agreed life/death condition
• Payments are determined on time or the annuity is converted on time

The Belastingdienst provides an online tool to calculate your maximum deductible amount

6.    Alimony for your ex

Child support is not deductible from tax, but alimony for your ex is. The recipient must declare the alimony as taxable income. For higher incomes (from €76,817), the maximum tax benefit of this deduction is 37.48%. You may deduct the following spousal alimony payments:

• Periodic spousal support payments
• Lump-sum spousal support, including a lump sum paid to an insurer for an annuity for your ex-partner. (This does not apply if the payment is made while you are permanently separated or living together without being married.)
• Retirement or pension payments that continue as spousal maintenance
• Payments related to the settlement of pension rights, annuities or other income provisions for which contributions were previously deductible
• Social security benefits paid to your ex-partner by your local authority and later recovered from you
• Other maintenance obligations, such as periodic compensation payments
• Part of the imputed rental value, if your ex-partner continues to live in the owner-occupied home

7.    Weekend care for disabled dependents

You may be entitled to a deduction if you care for a severely disabled person during weekends or holidays. Conditions:

• The dependent is 21 years or older
• They usually stay in a long-term care institution
• You care for them at home or at a holiday address
• Costs are not reimbursed by insurance or another institution

You can also deduct:

• The costs for picking up and dropping off by car – €0.23 per kilometre
• Extra costs due to the stay of the severely disabled person at your home – €13 per day

If you care for several disabled people, you may deduct costs mentioned for each person separately.

Make the most of your tax deductions

Using deductible costs can make a substantial difference to your Dutch tax return, but only if they are applied correctly.

If you want to better understand which deductions apply to your situation, the  specialists from TaxSavers are happy to handle your tax return from start to finish and help keep your tax bill as low as possible. Feel free to get in touch.