The Dutch M-Form Tax Return Explained: What Expats and International Entrepreneurs Need to Know
If you move to or from the Netherlands, you do not file a normal Dutch income tax return in that year.
Instead, the Dutch Tax Authorities (Belastingdienst) require a one-time special tax return called the M-form (“M-biljet”).
Many expats are surprised by this. The year you immigrate or emigrate is fiscally treated as a split tax year: part of the year you are a Dutch tax resident and part of the year you are not. Because of that, the standard online tax return is not sufficient — the M-form is specifically designed to allocate income, assets, deductions, and tax treaty relief correctly across both periods.
When do you have to file an M-form?
You must file an M-form if during a calendar year you:
– immigrate to the Netherlands, or
– emigrate from the Netherlands.
It applies to employees, entrepreneurs, freelancers, investors, and company directors alike.
This is not optional. Even if you already filed taxes abroad, the Netherlands still requires this return for that specific year.
What actually changes in the immigration year?
From the moment you become a Dutch tax resident, the Netherlands taxes you on your worldwide income.
That means:
You must report your entire income for the full year, not just the income earned in the Netherlands.
This typically includes:
– salary and bonuses
– business profits
– freelance income
– dividends
– rental income
– capital gains (in certain cases)
– foreign employment income
The Dutch system then applies tax treaty relief.
Taxes you already paid abroad are usually credited or exempted to prevent double taxation. In practice, the Dutch return reconciles everything: one country taxes first, and the Netherlands adjusts.
This is precisely why the M-form is complex — it combines domestic tax law and international tax treaties.
Box 3: Assets and wealth taxation
Many newcomers are also unfamiliar with the Dutch wealth tax system (Box 3 taxation).
If your assets exceed roughly €50,000 per person (threshold indexed annually), you must declare:
– foreign bank accounts
– investment portfolios
– shares
– crypto assets
– second homes
– rental real estate
(Your primary residence — the home you live in — is not included in Box 3.)
The Netherlands does not tax the actual interest or return. (from 2028 they will)
Instead, it taxes a deemed return on net assets. This often surprises international taxpayers because even dormant savings accounts must be reported.
For entrepreneurs and business owners
If you are an entrepreneur, director-shareholder (DGA), freelancer, or own a foreign company, the complexity increases significantly. Business profits, permanent establishment rules, and treaty allocation must be analyzed correctly. This is an area where standard bookkeeping offices often lack international tax expertise.
How we help: M-Form Tax Return Expats and International Entrepreneurs
Are you an entrepreneur and required to file an M-form tax return?
Please contact us.
We assist many entrepreneurial expats and foreign business owners with:
- Dutch M-form income tax returns
- International tax structuring
- Cross-border tax treaty analysis
- Ongoing fiscal advisory
- Setting up a company in the NEtherlands
- Applying for government benefits / allowances
Our services are provided entirely in English.
You work with a small, specialized office, meaning short communication lines, direct contact with your advisor, and none of the high fees typically charged by large firms. At the same time, you benefit from extensive experience in international taxation.
Peter (left) and Roy (right) are two experienced business advisers. In addition to traditional services (bookkeeping, financial statements, and tax returns), we place a strong emphasis on advisory. This ensures you comply with laws and regulations while also having a financial right-hand partner at your side — someone who is genuinely involved in your business and therefore able to provide tailored financial and tax advice. So you not only pay as little tax as possible, but also achieve your entrepreneurial goals.
Peter van Aarle
peter@lefaccountants.nl
+31 6 54320915
Roy Hoskam
roy@lefaccountants.nl
+31 6 43789083
