Cross-border work – a challenge?
If you are thinking about working in the Netherlands, then there are a few things you may need to consider. You may have to request documents to work in the Netherlands, such as a visa or a work permit, depending on a few conditions. You can find the conditions here.
Of course, securing the necessary paperwork is essential, but taxes shouldn’t be forgotten either! If you are planning to work or live in The Netherlands, it is important to seek tax advice in the early stages of your migration. For example, you may be eligible for the 30%-tax ruling. Sometimes this can only be acquired by setting up a Dutch BV, which is the most practical when done before the move.
Working in the Netherlands
If you are working in The Netherlands, and living in a different country, then your taxes can easily become complicated. Usually, the country in which you work and earn your income is the country that is allowed to tax you. Sometimes however, the country in which you reside is allowed to levy income tax. This is only, if the 183-day rule applies in your situation. However, there are 3 conditions which must be met:
- The recipient resides in the other country for a duration or durations totalling no more than 183 days within any twelve-month period, starting or ending in the fiscal year in question;
- and the remuneration/compensation is not covered by a permanent establishment that the employer maintains in the other State.
- And the remuneration/compensation is not covered by a permanent establishment that the employer maintains in the other country.
And the other way round: if you have been only living in The Netherlands and working (from abroad) or for a foreign company, then you should ensure your tax are filed correctly, in order to avoid double taxation!
More info is to be found here.
Living and working
If you are working in The Netherlands as well as living there it becomes a bit easier, but of course there are still plenty of things to look into, to ensure you are not paying more taxes than needed. It is worth getting your situation looked at, even if it is just to be sure there are no other ways you can save more tax. We can give tax advice on the tax impacts and benefits and of several scenarios, and of course help minimize Dutch tax on your income and assets. We can file your taxes without missing refund opportunities, and of course, negotiate with the Tax Office on your behalf.
Cross-border work can definitely be a challenge, tax-wise. But with Suurmond Taxconsultants at your side, you have your taxes under control!