The M return: the migration tax form when you move in or out
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
The M return is the income tax return for the year you emigrated or immigrated: your year is split into a resident period covering your worldwide income and a period in which the Netherlands taxes only Dutch-source income.
- You can file the M return online in the tax portal, with DigiD or a European recognised login from your country of residence.
- On paper, entrepreneurs also need a separate annual accounts booklet, which must be requested separately.
- The national insurance part of the tax credits is calculated pro rata over the period you were insured in the Netherlands.
- Taking your sole proprietorship abroad without a permanent establishment here usually counts as ceasing the business, settling on hidden reserves and goodwill.
If you moved to the Netherlands during the year, or left it, a letter arrives about an M return. The M stands for migration: it is the income tax return for a year in which you lived in the Netherlands for only part of the time. That return works differently from the ordinary one, because your year is cut in two and different rules apply to each part. This article explains what the M return is, when you have to file it, how to complete it online and what entrepreneurs should watch out for.
What the M return is
The M return is the income tax return for the year in which you emigrated or immigrated. In that year you were a resident taxpayer for part of the time, namely while you lived here, and for the rest of the year a non-resident taxpayer or not taxable in the Netherlands at all. The ordinary return cannot make that split; the M form can. Hence the separate name, which you also see as M form or M paper.
You file the M return only once: for the year of the move. The following year you file an ordinary return if you live in the Netherlands, or a C return if you live abroad and still have income here. If you move within the Netherlands this does not apply; then it is only about your change of address and your records.
| Period | You are | The Netherlands taxes |
|---|---|---|
| The months you lived here | a resident taxpayer | your worldwide income, with treaties against double taxation |
| The months you lived elsewhere | a non-resident taxpayer or not taxable | only income from Dutch sources |
How to file: online or on paper
For a long time the M return was only available on paper, but now you can simply file it online. You log in to the tax authorities' portal and choose, under income tax, the return for taxpayers who live outside the Netherlands for part of the year. You can log in with the Dutch DigiD, and from abroad also with a European recognised login from your country of residence. If you now live outside the Netherlands and have no DigiD yet, you request one through the Dutch government channels for people abroad.
If you prefer paper, you order the M form from the tax authorities; it arrives within two weeks. Note: if you are an entrepreneur, the paper form comes with a separate booklet of annual accounts in which you enter your balance sheet and profit and loss account. You have to request that separately, and that is exactly what people forget. Online, that part is simply included in the return.
- Check your registration: the date you entered or left the municipal register determines the split in your year.
- Gather your income from both periods, including the foreign part, plus withheld payroll tax and any foreign tax.
- If you are an entrepreneur, add your annual figures and your time records.
- Check whether you had a tax partner and over which period; with migration that works differently than in an ordinary year. See tax partnership.
- Keep to the date in your tax letter. If you cannot make it in time, request an extension before the deadline passes.
What is different about the calculation
Two things make the M return harder than an ordinary one. First, tax credits are not granted in full: the national insurance part is calculated pro rata over the period you were insured in the Netherlands. Someone emigrating in July therefore gets roughly half of that part. Second, personal deductions only apply for the period you lived here, unless you are treated as a qualifying non-resident taxpayer.
That qualifying non-resident status is a separate scheme for people living in the EU, the EEA, Switzerland or the Caribbean Netherlands who earn at least ninety per cent of their income in the Netherlands. If you meet it, in the non-resident period you may use the same deductions and tax credits as a resident. It often makes a difference of hundreds of euros, so run the numbers rather than skipping it.
Worked example: emigrating on 1 July
- January to July: profit from your Dutch business
- € 32,000, fully taxed in the Netherlands
- July to December: income in your new country
- not taxed in the Netherlands
- Tax credits
- insurance part pro rata for six months
- Already withheld or paid in the first half
- often more than ultimately due
Result: You get the difference back through the assessment on the M return. Without filing, that money simply stays put
What entrepreneurs should watch out for
If you have a sole proprietorship, emigrating involves more than filling in a form. If you take your business abroad and keep no permanent establishment here, the tax authorities in principle treat that as ceasing the business for Dutch tax purposes. You then settle on hidden reserves and goodwill, just as when selling your business. Have that calculated before you leave, because the bill lands in the year of departure.
If you have a private limited company, something else applies: on emigration you usually receive a protective assessment on the increase in value of your shares in box 2. You do not have to pay it immediately, but it hangs over you and can still be collected if within a number of years you distribute dividend or sell your shares. This too is bespoke; get advice before you decide.
- The 1,225-hour criterion is not reduced because you were an entrepreneur for only part of the year; if you do not reach it, the self-employed deduction lapses.
- VAT is entirely separate. Your VAT return continues per period until you deregister your business; the M return concerns income tax only.
- If you keep working for Dutch clients from abroad, look at the rules in working for a foreign client and at your A1 certificate for social security.
- Benefits and the health insurance contribution usually stop on emigration. Report the change, otherwise a reclaim follows.
Moving to the Netherlands instead?
On immigration the M return is usually simpler and more often favourable: the Netherlands does not tax the period before your arrival, and tax credits count from your arrival. If you start a business here straight away, read starting as an international freelancer: it sets out the order of residence rights, citizen service number and Chamber of Commerce registration, and why the 30% ruling does not apply to the self-employed.
Frequently asked questions
What does the M in M return stand for?
The M stands for migration. It is the income tax return for the year in which you moved to or from the Netherlands, and therefore lived here for only part of the year.
Can I file the M return online?
Yes. You log in to the tax portal and choose the return for taxpayers living outside the Netherlands for part of the year. You can log in with DigiD or a European recognised login from your country of residence. Paper is possible too, but then as an entrepreneur you must also request the separate annual accounts booklet.
I received no invitation. Do I still have to file?
If you expect to owe tax, you are required to request a return. If you expect a refund, it is voluntary but usually worth it: in the year of migration too much is often withheld. You can still request the return for several past years.
Do I get the full tax credits?
No. The national insurance part of the tax credits is calculated over the period you were insured in the Netherlands. If you move mid-year you get roughly half of that part.
What happens to my business if I emigrate?
If you take the business with you and no permanent establishment remains in the Netherlands, that usually counts as ceasing the business and you settle on hidden reserves and goodwill. With a company you often also receive a protective assessment on your shares. Have this calculated in advance.
When is the M return due?
Keep to the date in your tax letter; for the M return it is usually later than the 1 May deadline of the ordinary return. If you cannot make it, request an extension in time.
Sources
- Filing for the year of emigration or immigrationBelastingdienst · belastingdienst.nl
- Requesting the M return formBelastingdienst · belastingdienst.nl
- Tax return for the year you move abroadRijksoverheid · nederlandwereldwijd.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
