Banking, Money and Taxes in the Netherlands

The banking system in the Netherlands is fairly simple, with most banks offering comparable packages. You will need to open a Dutch bank account to receive your salary and pay for various services.

Managing your finances in the Netherlands is straightforward, thanks to a modern banking system and transparent tax obligations. Paying taxes may initially feel complex, but clear guidelines and professional consultants are available to help.

Money in the Netherlands

The currency of the Netherlands is the euro, divided into 100 cents.

• Notes: 5 EUR, 10 EUR, 20 EUR, 50 EUR, 100 EUR, 200 EUR and 500 EUR.
• Coins: 1 EUR and 2 EUR, and 1 cent, 2 cents, 5 cents, 10 cents, 20 cents and 50 cents.

Keep in mind that higher denominations, such as the 100 EUR and 200 EUR banknotes, are less frequently accepted, especially in smaller shops. 500 EUR banknotes are rarely accepted in many establishments. The Netherlands no longer uses 1 and 2-cent coins, so cash transactions are rounded to the nearest 5 cents.

Digital payments are incredibly popular. Debit cards are widely used, and most transactions are contactless. Payment platforms like iDEAL dominate online shopping, and digital wallets like PayPal and Apple Pay are gaining traction. For peer-to-peer payments, apps like Tikkie make splitting bills or repaying friends a breeze.

If you are new to the Netherlands, exchange rates can influence the value of your money when converting to euros.

Banking in the Netherlands

The largest banks in the Netherlands include ING, Rabobank, and ABN AMRO. Each offers wide-ranging services tailored to different needs. You can also check out digital-only banks like Bunq, N26, and Revolut. These modern alternatives often provide lower fees and greater flexibility. For example, Bunq offers multilingual services, and N26 simplifies account setup without requiring a BSN.

To open a bank account, you will typically need documents like your passport, proof of address, and a BSN number. Some banks may allow you to open an account without a BSN initially, but it is usually required.

The Dutch generally make a lot of payments with direct debiting from their accounts, so be prepared to set up this sort of system for your accounts.

Banking hours typically run from 9am to 6pm, Monday to Friday, with extended hours on certain days and limited Saturday openings. Most banks offer internet and mobile banking, ensuring you can manage your finances on the go.

Opening a bank account

Setting up a bank account in the Netherlands is a must. Bring your identification, proof of address, and BSN number to start. A residence permit may also be necessary if you’re a non-EU citizen. Some banks are flexible and allow initial setups without a BSN, making the process smoother for newcomers.

Credit cards and ATMs

Credit cards are accepted but not as commonly used as debit cards. For everyday purchases, carrying cash or using a debit card is more practical. ATMs are widely available whether you’re at a bank, train station, or airport. Local account holders often enjoy fee-free withdrawals, although some limits apply.

Taxes in the Netherlands

Taxes in the Netherlands can initially seem daunting, but understanding the system is key. Income is taxed progressively, divided into three categories or ‘boxes’. Each box applies to specific types of income, such as work, homeownership, or investments.

You must file annual tax returns, with the tax year following the calendar year. The deadline is usually in early April. If your home country has a double-taxation agreement with the Netherlands, this can help avoid being taxed twice on the same income. Consult official resources or a tax professional to understand your eligibility for tax relief.

The ’30 percent ruling’ is a significant benefit for expats with specific skills. This allows you to receive 30 percent of your salary tax-free for up to five years. Recent changes have reduced this percentage slightly, but transitional rules may apply if you already benefit from it. 

For non-residents, resources like the Dutch Tax Administration and expat organisations can offer clarity. Tax consultants specialising in expat services are also priceless for helping you figure out complex obligations.