Opening a Bank Account & Managing Your Taxes in the Netherlands

Jump right in:

• How to open a bank account in Netherlands?
• Top banks in Netherlands
• What is the tax system in Netherlands?
• What is the income tax in the Netherlands?

How to open a bank account in the Netherlands?

Foreigners, expats, international students, and foreign companies can all open a bank account in the Netherlands. If you’re a non-resident or you fail to provide the records your bank requires, you won’t be eligible for a Dutch bank account. Otherwise, as long as you have the necessary documents at hand, it’s quite easy.

Can you open a bank account in the Netherlands?

Yes, once you get your residency in the Netherlands sorted, you can open your bank account here. However, it’s good to wait until you have your citizen service number (BSN) to register for a bank account, if possible. Most banks will ask for your BSN upfront, but some allow you to open the account first and submit your BSN afterwards.

Setting up a Dutch bank account

The two most common types of accounts are:

• current (also called payment or checking) account
• savings account

You can also choose whether to open a single or joint account. Youth accounts, such as the Young Person's Growth Account, are available for children and young people from 0 to 18 years old.

When setting up a current account, you’ll be offered a debit card, often referred to as a PIN card. These are more popular in the Netherlands compared to credit cards. If you wish to have a credit card, keep in mind that while many restaurants, hotels, and tourist destinations accept them, some supermarkets still don’t.

Bank fees & deposits

Most banks require a monthly administration fee. The fee can be around 1.50–5 EUR (approx. 1.60–5.50 USD), depending on the type of account you choose. The only exception to this rule seems to be for no-fee youth bank accounts in the Netherlands. Administration fees for bank accounts with credit cards, multiple currencies, and travel flexibility are often more expensive.

Note that, typically, there are no minimum deposit or income requirements when opening a bank account.

Required documents to open a bank account

Typically, you need the following documents:

• proof of ID (passport or ID card)
• citizen service number (BSN) — some banks allow you to open the account first and provide the BSN within 120 days or temporarily use a Tax Identification Number
• proof of address (tenancy agreement, utility bill, etc.)

Some banks can also ask for an employment contract, Dutch phone number, residence permit, or proof of income. Students may be asked for proof of enrollment at their educational institution.

Top banks in the Netherlands

• ING
• Rabobank
• ABN AMRO
• SNS Bank -ASN Bank

ING is a very popular international bank that has a significant presence around Europe and in some Asian countries.

International banks available in the Netherlands

• Deutsche Bank
• HSBC
• Lloyds Bank
• Credit Europe Bank
• Argenta
• Commerzbank AG

Online banks in the Netherlands

• Revolut -N26
• bunq

Can you open a Dutch bank account online as an expat?

Foreigners can open a bank account in the Netherlands with an international passport, an EU passport, or a Dutch ID. Most banks give you the option to open an account online through their website or in person at a branch.

When registering, you need to provide proof of identity that confirms your nationality. At traditional banks, third-country nationals usually need to visit a branch in person to open an account, while digital banks such as bunq, N26, or Revolut allow you to complete the process fully online.

What is the tax system in the Netherlands?

The Dutch tax system divides income into three categories, or “boxes”, covering income from work and homeownership (Box 1), substantial interest (Box 2), and savings and investments (Box 3).

For detailed income tax rates and brackets for each box, see the section “What is the income tax in the Netherlands?” below.

The tax system in the Netherlands

Living and working in the Netherlands requires you to pay taxes. The country has quite a few tax laws in place, but the most relevant to the majority of people residing here is income tax. If you’re in the country as an employee, your taxes will be withheld from your salary (payroll taxes). Self-employed individuals need to pay their taxes when filing the annual tax return.

Even if your employer withholds payroll taxes, you may still need to file a tax return if you have extra income, deductions, or property. The Dutch tax year runs from 1 January to 31 December, and tax returns are usually due by 1 May. You’ll get a letter in February in your mailbox, on Mijn Belastingdienst, or in the Message Box on MijnOverheid. If needed, you can request an extension.

Types of taxes in the Netherlands

The value-added tax (Belasting over de toegevoegde waarde or BTW) in the Netherlands is either 21%, 9%, or 0%. The lower tariff (9%) is added on:

• food and drink
• agricultural products and services
• medicines
• books (hard copies and e-format)
• daily newspapers and magazines (hard copies and e-format)
• water supplies
• medical equipment for disabled persons
• admission to cultural services (theater, museums, etc.)
• admission to amusement parks and sporting events
• hotel accommodation, restaurant and catering services

The 0% VAT rate applies mainly to cross-border transactions, exports, and certain international services.

Goods & services tax

All other goods and services are taxed at 21%, but there are some exemptions. For example, exemptions apply to education, childcare, healthcare services, sports organisations and clubs, socio-cultural institutions, financial services and insurance, care and home care, as well as services supplied by composers, writers, and journalists. Fundraising activities may also be exempt.

Additional taxes

People that own real estate need to pay property tax to their local municipality. Owners of cars and boats need to pay road and boating tax, respectively. If you inherit a large sum of money, you need to pay inheritance tax. The same rule applies if you receive a gift that exceeds the exempt amount.

Dog tax

Another type of tax that might seem a little more unusual is dog tax. Dog owners in some areas of the Netherlands have to pay an annual tax on their furry friends. The amount varies by municipality and usually ranges from 60 to 150 EUR (approx. 70–180 USD) per year, with additional charges for each extra dog.

But don’t worry, only about 35% of Dutch municipalities still charge a dog tax, while many major cities — including Amsterdam, Rotterdam, Utrecht and The Hague have abolished it.

How much is the income tax in the Netherlands?

The Dutch income taxes can be quite complicated to understand. The ways of obtaining income are divided into three boxes:

• Box 1 — income on wages and property
• Box 2 — income from substantial business interest
• Box 3 — income from savings and investments

Tax brackets

In 2025, the tax brackets for box 1 are as follows (for individuals below the state pension age):

Box 2 income is taxed at 24.5% up to 67,804 EUR (approx. 80,000 USD) and 31% above that.

Box 3 is taxed at 36% on a deemed return from savings and investments, with a tax-free allowance of 57,684 EUR (approx. 68,000 USD) for individuals and 115,368 EUR (approx. 135,000 USD) for couples. The primary residence is exempt.

Expats may also qualify for the 30% ruling, which allows up to 30% of their salary to be paid tax-free if they meet the eligibility requirements (see below for info).

For the most up-to-date figures, visit the Belastingdienst (Dutch Tax and Customs Administration) website.

Tax deductions

The taxable income in the Netherlands is your gross salary minus applicable deductions. Some of the main Box 1 deductions are:

• costs for home ownership
• specific medical expenses
• alimony and other maintenance obligations
• mortgage interest on your main residence
• charitable donations to registered organizations
• self-employed and business-related deductions (for entrepreneurs)
• certain annuity or disability insurance contributions

Tax credits

Tax credits are discounts on tax contributions. They are determined according to your annual income. If you are eligible for them, this is how they are calculated: Your calculated payable tax – Tax credits = Tax you need to pay

The maximum tax credit sum is altered annually. There are two types of tax credits:

• general (applies to all)
• labor (applies to workers)
• Note that tax credits can add up.

The 30% ruling

This tax exemption benefits expat professionals who move to the Netherlands. For the first five years of living in the country, the government allows foreign workers to pay lower taxes. This exemption is made to compensate for expenses made when transitioning from one country to another.

The 30% stands for a portion of your salary that is considered tax free, which means that this percentage of your gross salary will not be taxed. The remaining amount falls into the respective income tax brackets. This ruling does not exempt expats from paying Box 2 or Box 3 taxes. Employers may also provide a tax-free allowance for certain extraterritorial expenses, such as international school fees for children.

To qualify for this ruling, expats need to meet a minimum salary threshold and be recruited from abroad. Still, most foreign workers are eligible for this benefit.

Taxes for self-employed people in the Netherlands

Most self-employed entrepreneurs and freelancers need to pay the same income tax that employees have withheld from their salary. However, they must do it themselves when filing their annual tax return. Additionally, they need to pay a health insurance premium contribution.

Depending on what they do, freelancers and self-employed workers also need to pay VAT. This applies to most businesses, except for a few of the above-mentioned services (healthcare, childcare, etc.).