A tax refund for working in Europe can bring you additional funds. Learn how to file a tax return and get a refund of overpaid taxes

Legal advice on education and employment abroad

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Many Ukrainians who left for Europe because of the war have been able to work officially in other countries. However, along with new opportunities comes the issue of paying taxes and the possibility of their refund. Let's look at how to reimburse taxes and why it is worth doing.

How does the taxation system work in Europe?

Tax rules vary from country to country, but in many European countries, the principle of paying taxes is similar. Usually, your employer automatically withholds a portion of your salary as a tax. This is a standard process for those who are officially employed. This system helps ensure that all employees pay their taxes, but it also creates a risk of overpayment. This is because the tax amount is calculated based on general data and may not take into account the individual circumstances of a particular person.

For example, the level of taxation may depend on your marital status, children, medical expenses, education, or other factors that may reduce your tax burden. However, the employer does not always have access to this information, so the tax may be charged at the maximum rate. To correct this data and get the overpaid money back, the employee can file a tax return.

An annual tax return allows you to calculate the actual level of taxation, taking into account all individual benefits and deductions. And if it turns out that more tax has been paid than required, you have the right to claim a refund. This procedure is a standard practice in many European countries, but the nuances differ from country to country.

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How does tax refund work in practice in European countries?

Let's analyze the European tax system on the example of three countries popular among Ukrainians.

Germany

Germany is one of those countries where the tax refund process is very common and well-organized. All residents of the country have to file annual income tax returns, even if they are officially employed and taxes are withheld by their employer. The reason is that the state allows employees to take into account personal circumstances to reduce their tax liabilities.

For example, if you moved to Germany during the war, you may have worked part-time during your first year of residence or had other expenses for moving and settling in. These expenses can affect your real income level, which in turn makes it possible to reduce your tax burden.

According to the Federal Statistical Office of Germany, the average tax refund in the country is €1,095 per year. This is a significant amount that many Ukrainians can get back if they file a tax return.

In our previous article, we explainedhow Ukrainians working in Germany can file a tax return and get back overpaid taxes.

United Kingdom

In this country, you can claim a refund not only for the current tax year, but also for the previous four years. This means that if you have not claimed a refund before, you still have the opportunity to get your money back.

The return is filed after the end of the tax year, which in the UK ends in April. The amount you can get back depends on various factors: the amount of overpayment, your income level, and the tax rate. For example, if you have worked in several places or changed jobs during the year, this may affect the calculation of your tax liability and entitle you to a tax refund.

The Netherlands

The Dutch tax office allows you to apply for a tax refund for the last 5 years. At the same time, overpayment of taxes can occur for several reasons, such as a part-time job, deductions that reduce taxation, or the right to specific tax credits.

So, if you are entitled to tax credits, deductions for children, education or medical expenses, or have worked for only a few months, this may affect the amount of your tax liabilities and allow you to get a refund.

How can I check the correctness of my tax payments and the amount of refund available?

The taxation system in each European country has its own peculiarities, and often information about taxes is available only in the local or English language. The procedure can be particularly complicated in cases where a person has worked in several countries. However, for Ukrainians working in Europe, there is a solution - consultations with tax experts who will help you check your payroll and determine whether the taxes are correctly calculated. This may not only provide an opportunity to reimburse overpaid taxes, but also access to additional social benefits.

One of the most well-known companies in this field is RT TAX, which has more than 400 offices in 40 countries and has helped more than 250,000 employees to get their taxes back.

RT TAX offers services with no upfront fees - you pay only if you successfully get your tax refund. This means you don't have to pay anything upfront.

Contact the experts and get your money back!

We remind you! According to the Tax Code, Ukrainians who are abroad and have income but have permanent residence in Ukraine are residents of Ukraine. This means that they must file a tax return. Read in detail how to do this, who is obliged to pay taxes twice and what fee will have to be paid in any case in our previous article.

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