Dividend Tax in the Netherlands: Rates, Exemptions & International Rules
Updated on 17 June 2025
The dividend tax Netherlands is a kind of income tax on payments of dividends to the shareholders of companies. The Netherlands tax law has provisions for a fixed rate on dividends. In case the business meets particular criteria, tax exemptions may apply. Our local agents can give you comprehensive information on tax compliance with respect to any Dutch entity.
What is the dividend tax in the Netherlands?
Dividends paid by Dutch resident companies are generally subject to 15% withholding tax. However, certain exemptions or reduced rates may apply based on tax treaties or EU directives. Some corporate shareholders may be able to claim relief or refunds depending on their residency status and applicable agreements.
Dividend Tax in the Netherlands. Dividends paid by Dutch resident companies are generally subject to 15% withholding tax. Certain exemptions or reduced rates may apply under tax treaties or EU directives.
However, companies do not owe dividend taxes if they fulfil certain requirements for participation exemption. This exemption concerns capital gains and dividends from shares of no less than 5%. Subsidiaries can be eligible for participation exemptions if they are active and pass the tax test (for being taxed in accordance to the Dutch principles). Additionally, less than 50% of the company’s assets can be passive. If a subsidiary meets these conditions, its income from dividends is exempt from taxes.
Dutch companies not qualifying for participation exemption are liable for taxes at the usual corporate rate with respect to profit from shares. If Dutch subsidiaries are subject to corporate tax but they do not meet all criteria to benefit fully from the exemption, they may receive a special credit.
Our lawyers in the Netherlands can provide you with detailed information on the provisions relevant to dividend income.
Dutch corporate taxes
According to the national law companies established in the country are resident and need to pay taxes on any income generated worldwide. Non-resident entities performing activities in the Netherlands owe taxes only with respect to income generated locally.
The Netherlands tax on corporate income is levied for all profits from business activities in the Netherlands, including income from foreign sources, capital gains and passive income.
The Dutch Tax office or ''Belastingdienst'' in Dutch, is the agency in charge of internal revenue and taxation. If you need more details on the Dutch tax system, do not hesitate to contact our local lawyers. We offer comprehensive services with respect to tax compliance. You can also check our article on paying taxes in the Netherlands.
Dividend Tax Credit for Dutch Taxpayers
For Dutch tax residents, the withheld dividend tax can typically be credited against their income tax. This means that the tax withheld on dividends can be deducted from the income tax owed, potentially leading to a reduction in overall tax liability or even a refund of part of the dividend tax.
Tax Treaty Claims for Foreign Shareholders
Foreign shareholders often use tax treaties between the Netherlands and their country of residence to obtain lower dividend tax rates. These treaties allow for a reduced rate of dividend tax in many cases. To benefit from this lower rate, the shareholder must typically submit specific forms or documents to the Dutch tax authorities.
EU Parent-Subsidiary Directive and Exemption from Dividend Tax
Under the EU Parent-Subsidiary Directive, dividend payments between parent and subsidiary companies within the EU can be exempt from dividend tax under certain conditions. Specifically, when the parent company holds a substantial stake (usually at least 5%) in the subsidiary, the payment may be exempt from Dutch dividend tax. This exemption is available provided the subsidiary meets certain requirements, such as being taxed in accordance with Dutch tax principles and meeting asset conditions.
Reclaiming Over-Withheld Dividend Tax
Foreign investors may be able to reclaim part or all of the dividend tax paid if it was withheld at too high a rate, for example, when the tax rate exceeded what was agreed upon in a tax treaty. The process for reclaiming the overpaid tax involves submitting a claim to the Dutch tax authorities, along with proof of tax residency and any other required documents. The process can take some time to be processed and approved.
FAQ's
What is the dividend tax rate in the Netherlands?
In the Netherlands, the standard dividend tax rate is 15%. This tax rate applies to dividends paid to both domestic and foreign shareholders. The tax is typically withheld at the source by the company distributing the dividend.
Are there exemptions from dividend tax in the Netherlands?
Yes, there are exemptions available in certain circumstances. For example, under specific tax treaties with other countries, the dividend tax rate can be reduced or eliminated. Additionally, qualifying parent-subsidiary relationships may allow for exemption from dividend tax under certain conditions, particularly when the parent company holds a significant stake in the subsidiary.
Do foreign shareholders pay dividend tax in the Netherlands?
Yes, foreign shareholders are subject to Dutch dividend tax on dividends paid by Dutch companies. However, the tax rate may be reduced based on the tax treaty between the Netherlands and the foreign shareholder's country of residence. To benefit from a reduced rate, the shareholder may need to submit specific forms or documents to the Dutch tax authorities.
Can I reclaim Dutch dividend tax as a foreign investor?
Yes, foreign investors who are subject to Dutch dividend tax may be able to reclaim part or all of the tax paid if there is a tax treaty between the Netherlands and their country of residence. The process involves submitting a tax reclaim request to the Dutch tax authorities, which may require proof of tax residency and other relevant documentation.
