Allowances for residents of Germany in Netherlands
If you live in Germany, you will be entitled to certain allowances, even if you do not elect resident taxpayer status. In that case, however, you should fulfil the conditions of the 90% facility laid down in the Frontier Workers Protocol to the tax treaty between the Netherlands and Germany. These conditions are as follows:
- You receive income from current or present employment – other than self-employment – that is taxable in the Netherlands.
- More than 90% of your total income is subject to Dutch taxation. If you are married, more than 90% of the aggregate income of you and your spouse should be subject to Dutch taxation.
If you live in Germany and fulfil these conditions, you may be entitled to the tax component of:
- the general tax credit
- the (supplementary) combination tax credit
- the (supplementary) single parent’s tax credit
- the (single) elderly person’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
- medical expenses and other extraordinary expenditure
- expenditure on weekend visits by (severely) handicapped children
- educational expenses
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
- the elderly person’s allowance
If you are married and your spouse has little or no income (up to € 6,172), he or she will also be eligible for a payout of the tax credit.
Partner
The 90 % facility will apply to your partner automatically if you are married or your partnership has been registered with the Register Office. You do not meet the conditions if you have been living together without being married and without your partnership being registered with the Register Office. When applying the 90 % facility we do not take your unmarried partner’s income and tax deductible items into consideration. Your unmarried partner is not entitled to the general tax credit.
Reporting 90% facility on tax declaration
Every year, you may report in your income tax declaration that you satisfy the requirements for the 90% facility. You must do this every year in your tax declaration. You may also do this via the form Non-Resident taxpayers’ Application or Amendment of Provisional Assessment.
