Allowances for residents of Belgium in Netherlands
If you live in Belgium, regardless of whether or not you elect resident taxpayer status, you will always be entitled to the tax component of the following tax credits, based on arrangements with Belgium:
- the general tax credit
- employed person’s tax credit
- the child tax credit
- the (supplementary) combination tax credit
- the (supplementary) single parent’s tax credit
Where applicable, you can also declare the following personal allowance items:
- alimony payments to your ex-spouse
- cost of living of children younger than 30
- expenditure on weekend visits by (severely) handicapped children
Furthermore, you may be entitled to the following allowances in determining the income from savings and investments (Box 3):
- the tax-free allowance
- the additional tax-free allowance for children
Prorated scheme for residents of Belgium
You are permitted to apply a limited personal tax allowance. Your levy exempted capital in box 3 is also limited. The part deductible in the Netherlands must be in proportion to the part of your income taxable in the Netherlands. This is referred to as the prorated scheme (pro-rataregeling). The maximum deductable part is calculated as follows: divide your Dutch income by the total of your income from the Netherlands and from abroad. Next, multiply the outcome (the multiplying factor) by the personal tax deductible item or your levy exempted capital.
Example
Your total income is € 50,000. € 30,000 is taxed in the Netherlands. The multiplying factor is € 30,000 / € 50,000 = 0.6.
For each year you pay € 3,000 maintenance allowance (a personal tax deductible item).
In the Netherlands you may deduct 0.6 x € 3.000 = € 1,800.
