With its high standard of living, excellent healthcare, vibrant cultural scene, and welcoming atmosphere, the Netherlands has become a top destination for expatriates from around the world.
In this guide, we’ll walk you through everything you need to know about relocating to Netherlands from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Netherlands follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if your personal, economic and social ties are located in the Netherlands during the tax year.
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Providing that you are considered a partial non-resident, 30% of your employment income up to a cap of EUR 233,000 will be exempt from Dutch taxation for five tax years. Netherlands can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
30% exemption up to 233,000 EUR.
Applied for five years.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Netherlands, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Netherlands has 102 double taxation agreements signed.
