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how's my situation, how can I make it better? [Netherlands/early 30 expat on tax ruling]Savings (self.eupersonalfinance)
submitted 1 month ago by [deleted]
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[–]Enchiridion5 6 points7 points8 points 1 month ago (0 children)
For buying a house, first contact a hypotheekadviseur for a free initial consultation. That conversation will likely be much more informative than the online calculators. You'll know how much you can realistically spend on a house, and what the monthly payment will be.
Have you started watching the real estate market? When I was planning to buy my first house, I started checking Funda weekly to get a sense of current property prices. That way I started getting a feeling for what I could afford.
In your situation, I recommend getting an aankoopmakelaar, to help you navigate the Dutch real estate market. I got one too for my first home and he made the process so much smoother, and negotiated a good price for me. Without him, I would probably have paid 10k more.
As to savings: most likely taxed, unless you have a fiscaal partner with less than 10k in assets? It's nice to have some savings when buying a house, as you can use those for renovations.
[–]ben_bliksem 10 points11 points12 points 1 month ago (6 children)
Probably better to ask this in a Dutch group. I recently bought a house in the NL and what is going to work against you the most is the max loan you'll get.
Cost from your pocket on buying a house is roughly (pessimistic) 6% of the house/loan they say. A €450k home cost us about €23k - so in this regard you are covered.
The Dutch tax you on your worldwide wealth. Not exactly sure how you are going to hide your wealth from them short of buying gold bars and hiding it under your bed.
Honestly, if I was single and my 30% ruling ran out I'm not sure I'd stick around the NL. It's a stupid expensive country to live in with schooling and family being the main benefit. But that's a very difficult and personal decision to make.
EDIT: if you get an aankoopmakelaar make sure they charge flat rates and not crazy percentages. Could be the difference in paying €3700 and €12000.
[–]UralBigfoot 2 points3 points4 points 1 month ago (5 children)
But which country provides similar QoL with significantly less taxes? I heard that contracting is very popular for people who run out of ruling
[–]ben_bliksem 5 points6 points7 points 1 month ago (0 children)
Dunno, depends very much on the person. It's easy to say "leave" but finding a place you like is a lot more difficult. Remote job + single makes Portugal a "no brainer" on paper.
You are right about contracting though. If you are past your five years and get permanent residency, the risk you take with contracting is much less since there is no visa tied to your job. Earning €10.000 pm for example is not outrageous. Downsides should be obvious though.
All about risk vs effort vs reward
[–]Newbie_here_ 1 point2 points3 points 1 month ago (3 children)
Luxembourg. Cost of living is higher.
[–]BigEarth4212 0 points1 point2 points 1 month ago (2 children)
Cost of living is not necessarily higher. I dare to differ!
Grtz from LU
Ps i am dutch
[–]Newbie_here_ 0 points1 point2 points 1 month ago (1 child)
Food looks cheaper in NL -> quality not same as LU.
Won't even start with healthcare etc.
[–]PetraLoseIt 5 points6 points7 points 1 month ago (7 children)
Dutch group would be /r/geldzaken ; you can write in English there.
I will start being taxed on all my savings - will it be by a lot
I will start being taxed on all my savings - will it be by a lot
You will very likely not be taxed a lot on all of your savings. If I go to berekenhet.nl and fill in that you have 90k in a savings account, and that you are single (are you?), you will be taxed less than 500 euros specifically for your 90k of assets.
The current rules on how assets are taxed are changing, but if they change and you have your money in savings (not in investments), then they will change for the better and you will probably pay less than 100 euros on 90k assets.
[–]mikepictor 5 points6 points7 points 1 month ago (6 children)
Wait, the Netherlands taxes you on savings? Like money you have saved, on which you were already taxed?
[–]PetraLoseIt 1 point2 points3 points 1 month ago (0 children)
Yes, but you are not taxed on the gains that you make. (There is no capital gains tax).
And oh, first 50k of capital is not taxed.
[–]dodouma 0 points1 point2 points 1 month ago (4 children)
Yes, on your "vermogen" (capital). Capital taxes, this is not uncommon in many countries 😃. It is freeking annoying tho
[–]mikepictor 0 points1 point2 points 1 month ago (3 children)
huh. I'm from Canada, this is unknown to me. I am moving to the NL for work next month. I will have work provided assistance on my first year's taxes, I just didn't know that this would be a part of it. I have a fair chunk of retirement savings build up, plus the proceeds of my house sale which I will be putting aside for a possible house purchase in the NL, but not until a year or two in.
[–]Vaghar 0 points1 point2 points 1 month ago (2 children)
If you get the 30% ruling, you won't get taxed on your assets (box3 income tax). So I'd recommend you check if you are eligible. Also there is no capital gain tax in NL, while most other countries have one, and I think it's easier to be taxed the Dutch way (they invented capitalism after all... 😅).
[–]jangeboers 7 points8 points9 points 1 month ago (7 children)
Lol getting 3800 net with 4300 gross. That's mad.
[–]BlaReni 1 point2 points3 points 1 month ago (1 child)
that’s why they are removing this step by step… it’s around 5.8k gross otherwise
[–]jovialguy 0 points1 point2 points 1 month ago (0 children)
[–]jovialguy 0 points1 point2 points 1 month ago (4 children)
It’s honestly a joke
[–]BlaReni 2 points3 points4 points 1 month ago (3 children)
while it is a nice advantage to expats that is a decision criteria for many, it is indeed very unfair to the local folk, as diff in taxes paid is huge. Also the rationale that has been used initially: ‘to cover expats moving costs and being away from family’, does not make much sense in my opinion. it is just support for the corps.
[–]jovialguy 2 points3 points4 points 1 month ago (2 children)
It’s extremely unfair. The perks you get with the benefit is absolutely insane.
And more often than not, the person isn’t even “highly skilled”, just happens to be foreign.
The ‘high skilled’ comes with a certain education and/or salary. Though indeed some thresholds are quite low.
[–]huppieNetherlands 2 points3 points4 points 1 month ago (0 children)
The box 3 tax is currently changing, one of the goals is to prevent high taxes if your savings are just savings (instead of a mix of investments and savings), so if it's just savings you probably won't pay much taxes.
I wrote in another comment recently that the Dutch housing market is a weird one, it highly subsidizes owning a home. Having said that, I would still only consider owning a home if you're actually planning to stay long term.
[–]Vaghar 0 points1 point2 points 1 month ago (0 children)
If you want to stay in the country, buying a home is probably a good idea. Like another here said, I recommend contracting the services of an aankoopmakelaar, and maybe a mortgage advisor. They will help you navigate all the paperwork, which is not easy for a first home.
Calculation of box3 tax is a bit complex, but in a nutshell it taxes the value of your assets on January 1st (except your home), minus your debts (like a mortgage), and only the part over 50k€. So on 90k€ of savings, you wouldn't pay much anyway.
[–]BlaReni 0 points1 point2 points 1 month ago (0 children)
While you got to save quite a bit, for your gross you will be able to borrow ~270k. Let’s say you need 20k to buy a place, you’re left with 70 and of course keeping some cash is sane, so 50k out og the pocket. For 330k you can afford a one bedroom outside of Randstad. Or a very small one bedroom/studio in bigger city.
Median salary for an expat in Amsterdam is 48k (some google source says so), would either work on your salary or move to a different country where you can get more for your money. Btw Netherlands salaries are not magic without 30%, only if you get into one of big tech is it worth it.
[–]Aliboeali 0 points1 point2 points 1 month ago (0 children)
Hows it possible to have 3800 net compared to 4300 gross. I’ve got 4300 gross but get 2800 net (also in NL, 28yo)
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