Your taxation in the Netherlands

An article by OrangeTax

Private individual

A private individual who has registered him or herself in the Netherlands has become a Dutch resident tax payer. That implies the world wide income and assets are taxed in the Netherlands. If you are lucky to have the 30% ruling, not much can be taxed with you. If you do not have the ruling or no longer have the ruling, you need to report your worldwide assets if more than EUR 57.000 and EUR 114.000 if you have a tax partner.

Property you own abroad are subject to a double taxation relief granted in the Netherlands. Such a relief does not exist for investments you hold abroad, not being pension capitals.

Working for a foreign employer

If you moved to the Netherlands and you remained working for a foreign employer, that income is taxed in the Netherlands based on the tax treaty. The foreign employer needs to set up a Dutch payroll for this labour income.

When the foreign employer is not willing get be exposed in the Netherlands, maybe invoicing the employer for your services can be a solution. In international situations the one client is no client rule does not apply.

Gifts from abroad

You are supported by your family in costs of living or the purchase of your house with gifts. The tax rules make that in the country where the person giving is living is in charge with respect to possible gift tax.

Foreign license plated car in the Netherlands

The moment you drove your car to the Netherlands and you have become a Dutch resident tax payer, you need to convert the car into one with Dutch license plates. The penalty for not doing so, is that the person who is stopped driving your car is to pay the tax more or less on the spot. A very rigid rule, as even a person not owning the car can be forced to pay the tax.

And what is the taxation on import of your car? Indeed, nothing. If you owned your car for at least six months before you moved to the Netherlands, then no import duty is to be paid on the car. You need to claim this car import household exception within 12 months upon arrival in the Netherlands.

Tax is exciting

We at OrangeTax think tax is exciting. Hence we work with fixed fees for the income tax return, the payroll administration and more services we provide, see our website, which is including fees.

The foreign employer payroll is much less a hassle than your foreign employer might think, please have them connect with us.

Answering simple questions is for free, and as we think tax is exciting, most questions are simple. Visit our website for more information.