Income Division Between Partners in Delft
For residents of Delft, income division between partners offers a smart tax option under Dutch tax and family law. Spouses or fiscal partners can allocate incomes from employment—such as jobs at TU Delft—from properties and other sources between them to reduce tax liability. This is arranged through the income tax return, depending on your partnership status and marital property regime. In this article for Delft residents, we explain the rules, with local examples and tips from the Juridisch Loket Delft.
What does income division between partners mean for Delft residents?
This scheme allows fiscal partners to allocate incomes for income tax (IB) purposes, particularly in box 1 (work and home) and box 3 (assets). The goal? Tax savings by making optimal use of tax credits or spreading income across tax brackets. See our article on marriage and taxes. In Delft, with many dual-income households in tech and education, this is especially relevant.
Fiscal partnership applies automatically in the case of marriage or registered partnership. Cohabiting couples in Delft must meet strict conditions; otherwise, incomes remain separate, increasing the tax burden.
Legal Basis
The foundation is the Income Tax Act 2001:
- Article 2.1 of the Income Tax Act 2001: Definition of fiscal partnership.
- Articles 2.13 and 2.14: Allocation of box 1 incomes.
- Article 2.36: Allocation of deductions.
- Article 3.111: Box 3 assets, such as savings accounts.
Overview of Allocation Mechanisms
Fiscal partners in Delft have various options. Here's a table:
| Mechanism | Description | Conditions | Benefit for Delft Residents |
|---|---|---|---|
| Box 1 division | Divide work/home incomes 50/50 or customised. | Both have income. | Optimise brackets and credits. |
| Allocation of benefits | Allocate alimony or periodic payments. | For maintenance. | Deductible for payer, taxable for recipient. | Gift division | Split gifts for tax purposes. | No exclusive conditions. | Lower gift tax. | Box 3 division | Allocate assets as of 1 January. | Fiscal partnership. | Lower tax on unequal assets. |
Conditions for Fiscal Partnership in Delft
You must qualify as a fiscal partner:
- Automatically: Marriage or registered partnership.
- Cohabiting in Delft: Same address for at least 6 months (check via Gemeente Delft), dependent child or joint mortgage. Or a notarial deed with joint liability.
Practical Examples for Delft Residents
Example 1: Box 1 division
Partner A, lecturer at TU Delft, earns €60,000; Partner B €20,000. Without division, A falls into a higher bracket (37.07% vs. 36.93% in 2023). With 50/50 (€40,000 each), they save €500, plus tax credits for B.
Example 2: Alimony post-divorce
Ex-partner pays €12,000 alimony: deductible for payer, taxable for recipient. Relevant for divorces in Delft.
Example 3: Box 3
A has €200,000 in savings, B none. Division to €100,000 each halves the 1.2% tax.
Rights and Obligations
Rights:
- Choose the most advantageous allocation on joint return.
- View data via the Tax Authority app.
- Appeal: Hearing and court at Rechtbank Den Haag.
Obligations:
- Joint tax return (unless opted out).
- Accurate information; fines up to 100% for fraud.
- Matrimonial property regime may limit allocation.
Frequently Asked Questions for Delft
Am I a fiscal partner with my partner in Delft?
Yes if conditions met: cohabitation, child or joint mortgage. Use the Tax Authority tool or visit Juridisch Loket Delft.
Can I change after filing?
No, binding for the year. Supplementary return up to 5 years, risk of reassessment.
Registered partnership?
Yes, equal to marriage. More info.
Partner abroad?
No partnership unless both Dutch tax liable. Check treaty.
Tips for Delft Residents
- Plan ahead: Use the Tax Authority calculator for optimal allocation.
- Matrimonial conditions: Opt for limited community of property. More.
- Divorce: Get free advice from Juridisch Loket Delft or Gemeente Delft for local support.
- Consult Rechtbank Den Haag for disputes.