End-of-year tax tips of 2021

Are you following an education? Then, make sure you pay most of the study costs in 2021. If you meet the requirements, you can still deduct these. From 2022, the deduction for study expenses stops in the Netherlands. As an alternative, the STAP budget will be introduced. Read more about it in this article.

Being wealthy is fun, except on January 1st! Then, you prefer to have as few box 3 assets as possible because this is the reference date on which the box 3 tax is based. It can therefore be fiscally advantageous to reduce your box 3 capital. You can do this in several ways:

Do you have big expenses planned? For example, have you been dreaming about a specific car for a while? Then, consider buying it this year to reduce your assets!

Because of the coronavirus, the gift exemptions have been increased once by € 1,000 in 2021. This means that you can give your child € 6,604 tax-free in 2021. For other recipients, this amounts to € 3,244. Do you want to give your children or grandchildren something extra? Then take advantage of this gift exemption! Double the advantage: because that way, you also reduce your capital.

Making extra repayments on your mortgage is also an option to reduce your capital. Before you do this, it is wise to consult with a mortgage advisor. You should keep in mind that you do not pay off too much; otherwise, you could receive a penalty. This penalty interest is deductible!

Have you not built up enough pension for a while? You’re not the only one; many people in the Netherlands have a pension gap. Do you want to supplement your pension? You can do this via the fiscal year space (in Dutch: jaarruimte)! Are you doing this before 2022? Then, this is twice as tax-efficient! On the one hand, you can deduct the money you put in from your income tax; on the other hand, you lower your box 3 tax!