30 percent ruling end and minimizing tax consequences
Did your 30% ruling end in 2020 or per January 1st 2021? Contact us to check your tax situation and possibilities to minimize tax consequences. We can also file your 2021 tax return correctly to prevent a fine from the tax office.
Tax on worldwide assets and foreign real estate
Without the 30% ruling, you will be treated as a full resident taxpayer instead of a partial non-domestic taxpayer. Consequently, you will need to declare your worldwide assets in your Dutch tax return. We are happy to file your 2021 tax return and seek ways to optimize your tax situation. For example: if your partner is still under the 30% ruling assets may be allocated to your partner.
How much tax on assets needs to be paid?
If you have assets worth above € 30,846 (individual) or € 61,692 (couples) you will start paying box 3 tax. Your assets of between €30,846 and € 103,643 are taxed at 0.54%; assets of between €103,643 and €1,036,418 will be taxed at 1.27%; and anything over that at 1.6%. Given these fixed amounts of tax are unrelated to the actual income your assets generate, the higher your income, the more tax efficient you are.
You also need to include foreign real estate in your tax return and request a deduction for double taxation. In most Dutch tax treaties, the taxation of real estate is always allocated to the country where the property is located.
Avoid a large fine
The Dutch tax office is actively seeking non-declared foreign bank accounts and you will risk a fine of up to 300% of the unpaid tax if you do not declare these.’