8 essential groups of the personal tax deductions in the Netherlands

by Martha van Dyke
2 min read
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State tax service in the Netherlands defines a list of personal costs that may be deducted from your taxed income. It means you may be able to save some money. It is important to inform you tax advisor if some of the tax deductions are applicable to your situation.

In general, the following personal costs and expenses may be deducted from your income:

Commuting allowance – if your employer grants you a monthly or yearly allowance for public transport commute to work this money may be deducted from your total income;

Home-related costs – the costs for financing, renovation and maintenance of the home you own may be deducted. Please note that this home should be your primary residence in order to deduct these expenses;

Maintenance costs – for example, if you support your ex-spouse financially;

Specific medical expenses – if you had to bear substantial medical costs and your medical insurance did not cover them, they may be deducted;

Study expenses – please note, not all the study expenses may be deducted. The decision is often taken based on the personal situation of an individual;

Expenses for seriously disabled people – if you had to take care of a temporarily disabled person at home, the costs related to such situation may be deducted;

Donations – inform the tax office of all the donations to charitable organizations you have made throughout the fiscal year;

Losses from work and home may be deducted under certain conditions. It is better to inform about them in details.

Please note, this is not the full list of the personal costs that may be deducted from your taxed income in the Netherlands. Make sure you provide the fullest information regarding your expenses to your tax advisor. It will help to optimize your tax payments.