Partner Income Splitting in Den Haag
For residents of Den Haag, partner income splitting offers a smart tax arrangement under Dutch family and tax law. Spouses or fiscal partners can reallocate income from work, housing, and other sources between them to minimize the overall tax burden. You handle this through your income tax return, depending on your partnership status and marriage settlement. In this article tailored for residents of Den Haag, we outline the rules with local examples and tips, including references to the Rechtbank Den Haag and the Juridisch Loket Den Haag.
What is partner income splitting?
This arrangement allows fiscal partners to allocate or split income when calculating income tax (IB), particularly in box 1 (work and home) and box 3 (assets). The goal? Optimize taxes by making better use of tax credits or spreading income across brackets. It's especially relevant for Den Haag residents with heavy commutes or expat status. See also our article on marriage and taxes.
Fiscal partnership applies automatically upon marriage or registered partnership. Cohabiting couples in Den Haag must meet strict requirements. Without splitting, incomes remain separate, often resulting in higher assessments.
Legal basis
The provisions are set out in the Income Tax Act 2001:
- Article 2.1 of the Income Tax Act 2001: Definition of fiscal partnership.
- Articles 2.13 and 2.14: Reallocation of box 1 income.
- Article 2.36: Allocation of deductions.
- Article 3.111: Splitting of savings and investment accounts in box 3.
Overview of splitting mechanisms
Fiscal partners in Den Haag have various options. Here's a practical overview:
| Mechanism | Description | Conditions | Benefit for Den Haag Residents |
|---|---|---|---|
| Box 1 splitting | Split work/home income 50/50 or customized. | Both have income. | Better use of brackets and credits. |
| Allocation of benefits | Allocate alimony/benefits. | Periodic, for maintenance. | Deductible for payer, taxable for recipient. |
| Gift splitting | Split gifts for tax purposes. | No restrictive marriage conditions. | Lower gift tax. |
| Box 3 splitting | Reallocate assets as of January 1. | Fiscal partnership. | Lower tax on unequal assets. |
Conditions for fiscal partnership
You must be fiscal partners to split:
- Automatic: Marriage or registered partnership.
- Cohabiting in Den Haag: Meet requirements such as:
- Living together at one address for at least 6 months.
- Dependent child or joint mortgage via Gemeente Den Haag.
- Notarial deed with joint liability.
Practical examples for Den Haag
Example 1: Box 1 splitting
Partner A (€60,000 from work in Den Haag offices), B (€20,000). Without splitting, A hits a higher bracket (37.07% vs. 36.93% in 2023). With 50/50 (€40,000 each), save €500 plus extra credit for B.
Example 2: Alimony post-divorce
€12,000 alimony: deductible for ex in Den Haag (box 1), taxable for recipient. Essential after proceedings at Rechtbank Den Haag.
Example 3: Box 3
A: €200,000 savings, B: €0. Splitting halves the tax (approx. 1.2% notional).
Rights and obligations
Rights:
- Choose the most advantageous split on joint return.
- Access via Tax Authority app.
- Objection: Hearing and appeal to Rechtbank Den Haag.
Obligations:
- Joint return (unless opted out).
- Accurate information; fines up to 100% for fraud.
- Marriage conditions may limit splitting.
Frequently asked questions
Am I a fiscal partner with my partner in Den Haag?
Yes if you meet the criteria: cohabitation, child, or joint finances. Use the Tax Authority tool or visit Juridisch Loket Den Haag.
Can I change after filing?
No, it's binding for the year. Supplementary return possible up to 5 years, with follow-up risk.
Registered partnership?
Yes, treated the same as marriage. More info.
Partner abroad?
No partnership unless dual Dutch tax liability. Check treaty.
Tips for Den Haag residents
- Plan ahead: Use the Tax Authority calculator.
- Amend conditions: Limited community property for flexibility. More on conditions.
- Local advice: Contact Juridisch Loket Den Haag or a notary for a personal review.
- Divorce: Report reference date change to Gemeente Den Haag and the court.