In the Netherlands you can jointly file a tax return with your tax partner, or use tax credits with your tax partner. Who is your tax partner?
Who is your tax partner?
Your tax partner is the person with whom:
- You are married; or
- You are registered partner with at city hall, registered via notary
- You have children
- You own the house that is your main residence
- You are mentioned in the pension facility of your employer as partner beneficiary.
Who is not your tax partner?
Your tax partner is not the person with whom:
- You are living together in a rented house, and you qualify for none of the points mentioned above
- You arranged the residence permit with, so you can come along as well or you can bring your friend with you on your residence permit
- You are married, but your partner prefers to stay in another country
- You are registered partners or you both own the house together, but you have not been registered at the same address for at least 6 months
- You are living together and the children are not born out of this relationship
Who can also be tax partner?
You are also tax partner with:
- Your brother or sister if you both own the house your life in. You cannot be partner with a third brother or sister.
- A friend that is not your lover, with whom you purchased the house you both live in
- Your ex-husband of wife of whom you have divorced you can still be regarded tax payers in the year of divorce for tax purpose.
Why is it important to know who is your tax partner?
In the Dutch tax legislation the tax partner is one definition, but used in all tax rules and regulations. So you might find it interesting not to be tax partners for Box 3 wealth tax, so that the other person only pays wealth tax. But then if you live together also 50% of the mortgage deduction can be applied, as you stated not to be tax partners. Then if you or your partner dies, you cannot use the tax partner tax free amount for inheritance tax, which is substantial.
It is therefore important to know what is your tax status in respect to the person you are living with.
We think tax-is-exciting. One of our initial questions to our clients is where they are a tax resident and if they have a tax partner. Often the unmarried partner with whom a house is rented is assumed to be the tax partner, which is not correct. The moment this couple purchases a house they do become tax partners. So be aware who is your tax partner.
Sorry for the dashes in the middle of the word tax-is-exciting. Apparently Google has a dirty mind and sees only a three letter word that we refer to when we practice to reproduce ourselves. Anything related to that word is spam, hence this devout solution.