Tax Topics
Dutch Tax Credits & Deductions - Maximize Your Savings
Tax credits and deductions can significantly reduce your Dutch tax burden. Understanding which credits you're entitled to and how to claim deductions can save you thousands of euros per year.
- General Tax Credit: €3,362 for most taxpayers in 2025
- Labor Tax Credit: Up to €5,052 for working individuals
- Healthcare Allowance: Up to €1,644/year for low-income households
- Mortgage Interest Deduction: Save on home loan interest
- Charitable Donations: Deduct gifts to approved charities
Credits applied: €3,362 (general) + €4,000 (labor) + €1,052 (healthcare allowance) = €8,414 total savings.
Do I need to apply for tax credits?
Most tax credits (general and labor credits) are automatically applied when filing your tax return. Healthcare allowance must be applied for separately through the Belastingdienst.
What is the mortgage interest deduction limit?
You can deduct mortgage interest on loans up to €1,000,000 for your primary residence. The deduction rate equals your marginal tax rate and is being phased down by 3% per year until 2023.
Can I claim business expenses as an employee?
Limited work-related expenses can be deducted if they exceed 3% of your income. Most employees benefit more from the standard labor tax credit than itemizing expenses.
How much can I deduct for charitable donations?
Donations to approved charities (ANBI institutions) can be deducted from income. Minimum threshold is €60 per charity, maximum deduction is 10% of your income.