The situation
- Single, salary €85,000 a year, 30% ruling, no home in the Netherlands.
- Savings €30,000; shares and funds €40,000.
- A flat in Pune worth €100,000, fully owned.
Box 1: income from work
- Salary
- €85,000
- 30% ruling, tax-free
- − €25,500
- Taxable income
- €59,500
- Tax before credits
- €21,644
- General tax credit
- − €845 (reduced because income is above the phase-out point)
- Labour tax credit
- − €4,780
- Box 1 tax
- €16,020
Box 3: savings, investments and the flat
The flat counts as an investment in Box 3, so Box 3 wealth is €30,000 savings plus €140,000 other assets. Before treaty relief, Box 3 tax is €2,058.
Under the Netherlands–India treaty, the share of Box 3 tax that falls on the flat is exempt. That relief is €1,406, leaving €652 of Box 3 tax.
Total
- Box 1
- €16,020
- Box 3 after relief
- €652
- Total income tax 2026
- €16,672
- Without claiming treaty relief
- €18,078
Forgetting the treaty relief would cost this engineer €1,406 a year. See the India page and enter your own figures in the full calculator.
Sources
This article is based on these official pages. If anything here differs from them, the official page is right.
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