The Dutch American Friendship Treaty or DAFT makes it attractive for US expats to launch a business in the Netherlands and can even be used, in some situations to qualify for the 30%-ruling. DAFT makes it easy for a person with US passport to secure a Dutch residence permit.
The DAFT visa is a special residence permit for U.S. citizens who want to live and work as self-employed entrepreneurs in the Netherlands. It is based on a treaty between the U.S. and the Netherlands that was established in 1956.
There are a few key requirements, however. You must bring a starting capital of € 4500 into the Dutch business and maintain this amount. You also have to immigrate to the Netherlands and you need to have a US passport.
The treaty allows for a residency permit for 2 years to commence initially. You can also choose what business structure you set up such as a sole trader (Eenmanszaak (EMZ)) or a BV.
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If you would like to know what the possibilities are in your case or seek advice how to apply the 30 ruling, please do not hesitate to contact us.
Frequently asked questions & responses
My wife and I are relocating to the Netherlands and we would like to speak to a Dutch as well as a US expert. We have questions about the 30% ruling and the DAFT visa. Our business has a revenu of $85.000 and my wife has a full time job with a US based company. She would like to continue to work for them, but how does that work? Will her employer have to register with the Dutch government? We currently have no links with The Netherlands.
Sander: I suppose you will apply for a DAFT visa via the company and your wife for a partner visa. One option is to register as a sole trader in The Netherlands, with other words continue your current business in The Netherland. You can then qualify for a visa via DAFT. Your wife could consequently qualify for a partner visa. Depending how your business develops the 30% ruling could be an interesting option and this would require a BV instead of a sole trader. However with USD 80k of revenue a sole trader is probably simpler as well as easy to stop in case you leave again. Please note that if you do not secure the 30% ruling upon immigration it is out of the question at a later stage. The employment of your wife is in principle no issue however if she lives in NL and works from NL this must be done via a Dutch payroll. There is then no need to have Dutch business. There may be other solutions; we will be glad to explore this with you. It is good you reached out in time whilst options are open. We can provide a complete service including the needs of the company set-up; 30% ruling and payroll solution for your wife.
My husband Fred and I just moved to the Netherlands on the DAFT Visa: Fred is the one on the DAFT who has started a sole trader company here and I am the spouse who will be working in the Netherlands with the spousal work visa. Fred is currently a 55% owner of a business in the United States and receives ~ $130,000 a year from that ownership. Will Fred be able to get the 30%-ruling? And what about myself, I still have employment in the US could I apply for the ruling too?
Sander: The 30% ruling would have been possible if Fred would have registered a BV and recruited himself from abroad. That is also possible in combination with DAFT. It seems this has not happened as you are already in NL and started as a sole trader. Conclusion: no 30%-ruling.
For yourself the 30% ruling could be possible if your US employer registers with the tax office in The Netherlands and sets up a payroll in NL. We can arrange this for your employer and provide a full service. Once you have secured this it can be transferred to another NL employer. However if you don’t qualify now you won’t qualify later either.
You are taxable from the moment you live and register in NL even if you were here staying for a limited period of time.
The 30 percent ruling means that 30 percent of your salary is paid out on a tax free basis for a period of five years. Want to know if you are eligible for the 30% ruling? Do you want a second opinion after your 30% ruling was denied? Did your 30% ruling come to an end?
A well-structured and timely presentation is essential in the request to the Tax Service. Our specialized tax consultants know how to make sure your situation is well presented to the Dutch Tax Authorities. This will increase the chance your application is accepted. We have also achieved good results for internationals who came to us for a second opinion after their first application was denied.
Once the 30 percent ruling is granted the ruling will have to be processed and applied to both Wages Tax return and Income Tax return.
In order to obtain this 30 ruling in the Netherlands you are required to show a particular scarce skill or expertise and have to be recruited by a Dutch employer from abroad. Here you find the list of specific requirements:
The specific expertise requirement is mainly based on a minimum salary requirement of € 48.013 in 2026 (€ 46.660 in 2025) taxable salary plus the 30 percent allowance, which means about € € 68.590 in 2026 (€ 66.658 in 2025) gross salary (including the 30 percent tax free part);
Prior to your employment in the Netherlands you need to have lived further than 150 kilometers from the Dutch border during the last 16 months out of 24 months;
Specific regulations apply to graduates and research scientists. If PhD graduates are offered a job in the Netherlands after they graduate, they are not obligated to have lived abroad before accepting the job. The minimum taxable salary needs to be € 36.497 in 2026 (2025: € 35.468). For research scientists there is no minimum salary;
Periods in which you have lived and/or worked in the Netherlands will be deducted from the 30 ruling period. (Dutch people are obliged to have lived at least 25 years abroad before being recruited to be counted as an expat);
If you change jobs you need to be unemployed for a maximum period of 3 months otherwise you will lose the 30 percent ruling.
30 ruling Netherlands: opt for partial non-domestic taxation
After you have been granted the 30% ruling it is important that you opt for partial non-domestic taxation which releases you from the obligation to pay taxes on your worldwide wealth in box 3. On top of this you will be exempt from tax on income from savings and investments, as well as taxation on dividends from substantial shareholdings, with some exceptions. Along with some other practical advantages, such as an easier procedure for acquiring a Dutch driving license, this makes the 30 ruling a very favourable arrangement for expatriates.
If you wish to start a business in the Netherlands, it is very worthwhile to investigate whether you could qualify for the 30%-ruling as employed by your company. In this case the company and payroll will need to be set up before you start working.
If you would like to know what the possibilities are in your case or seek advice how to apply the 30 ruling, please do not hesitate to contact us.
Examples of 30% ruling situations
You have recently moved to Netherlands and started working in the beginning of 2020. Before you came to the Netherlands you have been working in Spain for the last 3 years. You are planning to apply for the 30% ruling and would like to seek assistance from a tax consultant. You are wondering if it is a problem that you signed your job contract on the first day of work, a week after you arrived in the Netherlands. However, you were hired from abroad since your employer applied for your visa and work permit with IND. You have a copy of the letter from IND stating that your employer applied for my work permit. Also you have bank statements with your Spanish address on them.
In your case it is crucial that your situation is presented correctly to the tax office. To qualify for the 30% ruling you need to be recruited from abroad. This makes it important that you sign your Dutch job contract before actually living in the Netherlands. In your case however this might not be an issue since you have proof of being recruited from abroad like the IND letter and bank statements. And probably you can also show a job offer in writing prior to the contract. We would be happy to present your situation correctly to the tax office to prevent the 30% being denied.
You are relocating from Dublin to Amsterdam within a few months. You would like to receive expat related tax advice. Your company is organising the application for the 30% tax ruling, but you want a general overview of how the Dutch system works and where advantages can be found. Also you have some specific questions about Dutch tax consequences for your existing assets in Ireland and your home country.
If the 30% ruling is granted and the tax return filed correctly there should be no tax consequences for your worldwide assets. The maximum period for the 30% ruling is 5 years. We will be glad to help with a correct and advantageous tax return next year, making use of all tax deductions possible. We can also help with the 30% ruling; you only have once chance to get this right. If you do not qualify when you enter the country you will not qualify either at a later stage.
You are moving to The Hague after signing a new contract at your company. Your employer does not have a presence in the Netherlands yet and you will be the only employee in the Netherlands. Your company is willing to create opportunities for you to qualify for the 30% ruling, for example setting up a payroll for you in the Netherlands. You do earn over the threshold for the 30% tax free ruling.
To qualify for the 30% ruling in the Netherlands you need indeed to be paid via the Dutch tax system. We can certainly set up your employer as a Dutch withholding agent which means they can run a Dutch pay roll. You will then be paid via the Dutch tax system as well as insured via NL. In most cases it is also a good option to run the salary through a payroll company in that situation. The payroll company will then make sure that the correct Dutch taxes are withheld from the salary.
You are considering moving to the Netherlands before the end of the year. Currently you are a freelancer in the UK and you have heard about setting up a BV in the Netherlands to be able to take advantage of the 30% ruling. You are wondering if that is possible since your company would probably be earning quite a bit less than the recommended BV threshold of € 120.000 – € 150.000 per year.
Normally if you start a company, with profits still on a lower level, a BV may not be now considered the best option; however with the 30% ruling benefit it certainly becomes more attractive. It is important that the various required action points are carried out in the right order so as not to jeopardize the 30 ruling possibility. We can certainly help with the setting up of a BV – also a notary public for the official incorporation is needed – as well as the preparation of quarterly VAT returns, monthly wages tax returns and annual accounts as well as the corporate and personal income tax returns.
You are already working in the Netherlands since recently and are under the 30% ruling. Your wife still lives abroad and will move to the Netherlands in a few weeks. She is a U.S. citizen and will remain working for a US company. You want to know if there is a way that your wife will also get the 30% ruling.
If your wife would set up a BV prior to moving to NL she would then become an employee of this BV and the BV would invoice the US company (now employer – then client). This way the 30% ruling may be applicable. Setting up a BV will involve some time and your wife may have to hold of the immigration process. It is important that your wife had no previous stays in NL and is not registered here yet nor has the immigration process started. There may be other options that qualify for the 30% ruling such as commencement of an NL payroll for the current US employer which is something we could arrange but it would require the cooperation of the US employer. An even simpler setup would be to use a third-party payroll company. In this your wife would become an employee of the payroll company and the payroll company would invoice the US employer.
Your employer is helping you with the application for the 30% ruling. You do in fact meet all the requirements: you did not live within 150 km of the Dutch border, your salary is high enough and you were recruited from abroad. The problem is that you completed your degree from a Dutch university and were officially registered at your family’s address within 150 km of the Dutch border. You are afraid the Dutch Tax authorities will see this as a reason to deny your 30% ruling. You want to know how to proceed and how to prove that you do qualify.
It is indeed important that the application is done correctly. It is important to include documents that state that you were living further away than 150 km from the Netherlands. Think of a CV that mentions your actual living address. Questions may be raised by the inspector but can also be dealt with later; at the moment it is best to complete the form as clearly as possible and avoid including items that could give raise to further questions.
You will start a new job in Eindhoven from the 1st of October and will apply for the 30% tax ruling. Your question is: can you already start renting an apartment from the 1st of September or is this going to compromise the 30% tax ruling?
We would be happy to help you out by answering your question regarding the 30% ruling and moving to the Netherlands. To qualify for the 30% ruling you need to have signed a job contract before you move to the Netherlands, that is September 1st in case you rent an apartment from that date. You should preferably register at the city council around October 1st.
Are you considering moving (back) to the Netherlands? Most likely you have several scenarios in mind and you are wondering what the tax impact and benefits of each scenario would be. We would be happy to support you with tax advice. If you have already moved, we can file your M-form correctly and tax-efficient.
How to optimize your tax situation
Especially if you own (a) house(s) and have assets, a business, or other interests abroad, moving to the Netherlands is something to be carefully prepared. Moving to the Netherlands can give you several Dutch tax refund opportunities. If you seek immigration tax advice in an early stage, you can often still optimize the situation tax-wise. For example, you can organize beforehand that you are entitled to the 30% ruling by setting up a BV or being hired by a Dutch company. This would mean that 30% of your salary is tax-free and you do not have to declare your worldwide assets in your Dutch tax return (for 5 years). The timing of registration or buying a house is also very important.
M form
For the year you migrated to or from the Netherlands, you will have to file an M form which gives you several extra refund opportunities. Make sure your entire situation is carefully considered by a tax advisor to prevent costly mistakes or missed refunds.
Moving to the Netherlands example situations
You are in need of a tax advisor. You and your family are planning to move to the Netherlands next year. You and your wife will both continue working remotely for your current employers. You now have a full-time indefinite contract with a fixed annual salary. You are wondering if there is a possibility to keep it that way or that you should become self-employed and invoice your employers for services each month.
Would your UK employer consider setting up an NL payroll? This could be very advantageous for you. If you have never lived in the Netherlands before you might also benefit from the 30% ruling that way. becoming self-employed is hardly an option because working from a sole trader company requires more than just one client.
You are an Italian and received a job offer as a contractor for a German company. They would give you the opportunity to work remotely. Since your girlfriend lives in the Netherlands you are considering relocating from Italy to the Netherlands and work remotely for the German company. You want to understand how this would work tax-wise.
If the job offer involves an NL payroll through which you are paid you will become taxable in NL but your tax exposure could be limited by making use of the 30% ruling. It is important to do things in the right order to qualify for this.
You are looking for an accountant to manage your situation. You are an independent worker currently resident in the UK and you would like to relocate to the Netherlands. You would like to have some tax advice before you move.
It is important to check out possibilities prior to moving. Have you lived in NL before? Would you have a company in the UK at the moment? What will your income look like when you move to NL? There may be a favorable way to set this up. We can advise as well as look after your specific tax needs and liaise with your UK advisor if needed.
You are a US citizen moving to the Netherlands. You are looking at options to keep working for your US employer from the Netherlands and want to know more about the 30% ruling and 183-day rule.
When immigrating and registering in NL you will become taxable for your worldwide income and wealth. The 183 day rule is only relevant if you are working more than 183 days in another country than NL and then NL will grant double taxation deduction. The 30% ruling can be applicable but you must have a Dutch employer. There is various ways to create a Dutch employer but your US employer will need to cooperate to make this work. If your US employer already has a fixed establishment in NL then we can simply add you to the NL payroll or set up an NL payroll.
Your wife has signed a contract for a job in The Hague and you will be moving to the Netherlands. You are currently living in Spain, from where you are working remotely for a US employer. You intend to keep working for this US company from the Netherlands and want to know what is possible tax-wise and how to prevent double taxation.
Upon immigration, you will become taxable for your worldwide income and wealth. I assume the Dutch employer of your wife will make sure the 30% ruling is requested. Is that correct? You will also become taxable for your US employment as you will physically work in NL. This should be structured via a Dutch employment situation. There is various ways of creating a Dutch employer but it will need the cooperation of your US employer. There should be no double taxation as you should only pay tax in NL and exemption should be applied in the US. The 30% ruling may also be applicable for yourself if you meet all criteria and this will not double be the best way forward. I will be glad to help with the practical working out.
The 30 percent ruling – a financial gem that grants you tax-free 30 percent of your salary tax-free for five years. Dubbed the “30% tax facility,” this enticing benefit extends its reach to not just employees, but entrepreneurs as well, thanks to a clever loophole. A beacon for skilled migrants, the 30% ruling boasts magnetism and, yes, a touch of controversy.Yet, this advantage isn’t an open door for every expat in the Netherlands; it rests upon a checklist of conditions.
Click here if you want to see if these conditions apply to you. It is a big turn of events for an expat to bid farewell to the 30% ruling.
Without the 30% ruling, you can no longer opt to be considered as a partial non-domestic taxpayer. In other words, you will be treated as a full resident tax payer and you will need to be declaring foreign assets in your Dutch tax return.
Declaring foreign assets Netherlands
So if you own a second home, shares, bank accounts cryptocurrencies, NFTs, or investments, they will need to be declared in box 3. If the total sum surpasses the tax-free threshold (€50,650 per person in 2022), you will need to declare them in your annual income tax return under Box 3. Conversely, you can offset debts like a student loan or secondary home mortgage. Moreover, after your 30% ruling has ended, dividend from a major shareholdership is taxable under Box 2.
What actually is box 3 ?
Box 3 tax applies to your worldwide net wealth – savings, investments, and real estate. Taxation isn’t on asset income or gains but on an estimated yield derived from the asset value. From 2027, a new system will replace current box 3 taxation, annually taxing regular income and asset value growth, i.e. capital gains.
Basically, The Dutch wealth tax, also known as Box 3 tax, taxes notional income from savings and investments. It’s currently undergoing changes and applies to assets as of 1 January. A recent High Court decision has led to the temporary suspension of Box 3 tax assessments. It’s advisable to await clearer guidance on reducing Box 3 tax before taking action. The High Court emphasized that the assumed investment returns can pose a significant financial burden, especially for those with savings.
Minimize wealth tax Netherlands
Once your 30% ruling terminates, you’ll be subject to regular Dutch taxation on your global wealth (Box 3 tax), which means declaring it correctly in your tax return is necessary, to avoid hefty penalties.
30 % ruling and forgot to opt for non-domestic taxation?
Even if you’re still under the 30% ruling but haven’t chosen partial non-domestic taxation, your (worldwide) assets in Box 3 must be declared. Dutch property, excluding your primary residence, is always taxable in box 3, even during the 30% ruling. Ensuring correct partial non-domestic taxation opt-in is advised, as errors are common. If you’ve overlooked this which is not uncommon, we can assist in clarifying your tax obligations.
“Dutch property, excluding your primary residence, is always taxable in box 3, even during the 30 ruling“
It is wise to let one of our experts have a look at your situation if your 30 ruling is ending. Imagine a scenario featuring a German expat whose 30% ruling concludes on January 1st, 2021. As her non-domestic taxpayer status ends, she will have to pay Dutch box 3 tax for her worldwide assets. On savings in Germany, Dutch box-3 tax is now applicable. Our tax specialists can aid her in crafting strategies to mitigate her tax obligations. One option involves reallocating savings to partially repay her Dutch mortgage, resulting in reduced box 3 tax liability, though accompanied by diminished mortgage relief. This not only cuts down the mortgage interest but also lowers savings, translating to decreased box 3 taxation.
Of course, you don’t want to miss out on any tax benefits in the Netherlands that you are entitled to. In that case, you need to file a tax return and make sure this is done correctly. You can file a tax return for 2022 (from March 2023), 2021, and previous years, till five years back. Take a step in the right direction and contact us to file your tax return. No complicated online forms to be filled in, but personal and proactive service. Our tax consultants are passionate about seeking ways to optimize your tax return in the Netherlands.
How do you know if you need to file a tax return?
Even if you have not received an invitation to submit a tax return in the Netherlands, it is important to have your tax situation checked by a specialized expat tax advisor. You can contact us to check if it would be worthwhile for you to file a tax return. We will ask you the right questions to get the full picture of your tax situation. This way we can check all your tax-saving possibilities and you won’t miss any tax refund opportunities while filing your Dutch tax return. If you have your tax return automatically done by your employer in the Netherlands or a firm hired by them you can also come to us for a second opinion.
When is the deadline?
We will be pleased to look after the preparation of your tax return. The deadline is May 1st, but we will request an extension till May 1st next year for submitting your tax return. since we receive many tax return requests during this period. We will process the tax returns in the order in which they are received as much as possible. Do you have a specific reason why the tax return must be filed quicker? We will take this into account when scheduling the tax return. If you include information about possible deductible expenses and other relevant changes in your situation we can optimize your tax return as much as possible.
Why use a tax advisor?
Our advisors understand that you do not wish to pay more tax than necessary and aim for a maximum tax benefit in your situation. Equally important, we also want to make sure that you are fully compliant. Some tax obligations are easily overlooked since you may not be aware of your responsibilities and the impact of certain actions on your taxes. While paying less tax may seem nice short term, unpaid tax can lead to a high tax bill with fines – up to 300% – and interest in the future. It is therefore important that you inform us as well as possible about your situation, questions, and challenges; you remain responsible for a correct declaration. With our long-term focus, we can advise you proactively as your situation changes. Filing your own tax return or even worse making use of a budget tax return service may seem profitable at first, but there is a good chance that you pay the bill for this later.
Tax return in the Netherlands: which deductions
J.C. Suurmond & zn. Tax consultants are experts in expat tax matters and will make sure the optimum tax status is applied for. We will check whether all tax deductions, credits and allowances, applicable to your situation, are made use of. Regular Dutch tax return deductions are for example:
mortgage interest deduction
educational costs (also of your children or partner),
charitable giving
alimony
non-compensated health costs
In a proactive way you will be advised of your personal tax saving possibilities, which will be processed in the income tax return. As we provide a complete tax return service, we will also check the tax assessments that follow and appeal if needed to make sure your tax affairs are settled correctly.
Which tax form should you file?
The regular tax form is a P-form. In immigration or emigration situations however, an extensive M-form has to be submitted. This is a more extensive Dutch tax return form and has to be submitted on paper. In a situation where you only lived in the Netherlands very short or merely worked in the Netherlands, a C-form for non-domestic taxation may apply. The M-form and C-form often give opportunity for refunds. With help of our direct line to the inspectors at the tax inspectorate for expats in Heerlen, we can check what Dutch tax return needs to be submitted in your situation. We also take care of other tax forms, for example the request for a provisional refund for mortgage relief, which results in a monthly refund instead of a lump sum after the end of the year.
Examples of tax return situations
After completing your last tax assessment yourself it appeared that you would receive a sizeable rebate, but you have recently received a letter stating you owed the tax office €5500. You are quite puzzled and want to have an expert look at it properly.
It is possible that the final assessment turns out different, in this case disadvantageous for you. If you have filed the tax return yourself you may have missed some tax deduction possibilities. You can send us a copy of the tax return that you filed as well as your December pay slip and finally the correspondence that you have now received from the tax office. We will check what happened and what we can do for you.
In 2021 you worked 6 months in a Rotterdam office and need to do the taxes for this time. You did not live in the Netherlands prior to this job.
If you were a single taxpayer the refund entitlement for 2021 may be just over € 4000. We will be glad to start the process to reclaim this amount. We will look after the communication with the tax office until the refund is in your bank account.
When it comes to your tax affairs we understand that you are looking for a trusted tax advisor with a proactive, long term focus and personal service. Our experienced tax advisors can help you understand your tax situation and explore ways to optimize your taxes. We are happy to support you with tax advice if you are in situations like these:
Each international tax situation is unique, amongst others depending on the country you live or generate income from. We are happy to help you optimize your Dutch tax situation by looking at tax saving possibilities in your specific situation or possible scenarios, and understanding how the possible tax treaty works in your situation. We provide tax services like:
Tax advice on the tax impact and benefits of several scenarios;
Minimizing Dutch tax on your income and assets;
Tax filing for several years without missing any tax refund opportunity;
Strategic plan for taxes both in the Netherlands and abroad;
Minimizing tax consequences in (un)expected international working and living situations;
Negotiations with the Dutch Tax office.
What’s it worth?
As qualified advisors we want to be fully aware of your situation to make maximum use of existing Dutch tax regulations and international tax treaties. From our experience we know that a budget cost tax return service may seem profitable at first, but there is a chance that something important is missed. Especially if your situation is more complex. We have claimed back € 50.000 on income tax for a US client with a complex international situation who used an online tax return service for several years and missed out on one important tax refund possibility.
How does it work?
If you have a tax question please send us an email or fill in the contact form with as much details as possible. One of our advisors will get back to you and indicate what is important in your situation, what we can do for you and what the hourly rates are. Our hourly rates range from € 175 to € 235 plus 21% VAT, depending on your situation.
Tax advice example situations
You need some advice to get an understanding of the potential options and tax implications of your situation. You are wondering if we are able to help you with the above scenarios so you get a full understanding of what your options are and what the most cost-effective scenario is. You have accepted a job at an international organization in The Netherlands and will have the corresponding Privileges & Immunities. Your wife works for a UK employer and wants to work from the Dutch office from her employer. The employer though has let her know that they want to retain her on a UK employment contract. Is it possible for her to move to The Netherlands and be resident here but still be employed on a UK employment contract?
If your wife moves to NL and works for the UK employer from NL the results in the obligation for the UK employer to set up a Dutch payroll as this is the only way to make sure the social security contributions (unemployment benefit and disablement insurance) are paid. This option would come with the benefit of the 30% ruling which becomes possible if your wife moves to fulfill a Dutch role. We can register the employer as a withholding agent and look after the employment contract, payroll set up, and monthly payslips and wages tax returns. It does involve some expense but it is then set up correctly which is a benefit both to your wife and to the employer. If the expense is an issue this could be taken off your wifes’ salary. This will be more than made up with the 30% tax-free component.
You and your family live in the Netherlands for 7 years now and own a house in Amstelveen. You are working on a Dutch payroll for your UK employer. You have been asked to relocate to Switzerland. You would like to understand tax implications in case you would relocate to Switzerland and your family stays in the Netherlands. You would be spending weekends in NL.
In the situation, you mention your center of life will remain in NL as this is where your family lives, where you own your home, etc. Consequently, you remain taxable for your worldwide income and assets. There is a treaty with Switzerland that intends to prevent double taxation but it is important to apply this correctly. For example, it is important whether you only work in Switzerland and if it is a Swiss payroll or not.
You and your wife and 3 children are currently living in South Africa. You are working for a local company there. You are originally from the Netherlands and all your family members have the Dutch nationality. You are planning to move back to NL and buy a property in the NL. You are considering two options and want to know the tax consequences of both options are: moving back with the whole family or you staying in South Africa and your wife and children moving to the NL. You have some property and assets abroad. To be able to make the final decision, you need to understand what are the possible Dutch Taxations based on your family situation in case you move back to NL.
Please note that upon immigration to the NL you will become taxable for your worldwide income and wealth here. If you remain physically working in South Africa and tax is paid locally double taxation deduction may be granted. Alternatively, you may consider splitting your tax status.
You and your wife and 3 children are currently living in South Africa. You are working for a local company there. You are originally from The Netherlands. You are planning to move back to NL and buy a property in the NL. You are considering two options and want to know the tax consequences of both options are: moving back with the whole family or you staying in South Africa and your wife and children moving to the NL. You have some property and assets abroad. To be able to make the final decision, you need to understand what the possible Dutch Taxations based on your family situation are in case you move back to NL.
Thank you for your email. We will be glad to help. Please note that upon immigration you will become taxable for your worldwide income and wealth in the Netherlands since your center of life will be in NL. If your family moves to NL and you remain physically working in South Africa and tax is paid locally double taxation deduction may be granted. Alternatively, we may consider splitting your tax status. We would be glad to check out what the possibilities are.
You have been offered a position with a Dutch company in Rotterdam. You currently live and work in the UK and the company does not require you to be present in the office to do your job. You are wondering if you can be a full-time employee of the Dutch company and work from Ireland and whether you need to file an Irish tax return or also a Dutch one in that case.
Many thanks for your email. We will be glad to help. Would the NL employer have a fixed establishment in the UK and be able to put you on an Irish payroll? You will need some advice in the UK on how to make sure income tax and social security are paid in the UK. In NL it would be important that no Dutch tax is withheld etc. Is this something the NL employer is offering?
You are working as an international in the Netherlands for 3 years now and are benefiting from the 30% ruling. Your partner is an Australian citizen and is working and living mainly in Australia. She does have a residence permit though and is registered at the same address as you are in Amsterdam. She spends the majority of her time in Australia which is her main residence. You would like to have some tax advice regarding some of the questions on the tax declaration form, e.g., declaration of assets abroad and tax implications in connection with my partner.
Could I suggest you send me a copy of your last tax return? I assume the 30% ruling is applicable for a further 2 years? Some important questions to get a clearer picture of your tax status are: Does your partner also work in NL? It does not seem she is a fiscal partner? No registered partnership, no children together, not living in a jointly owned property, etc. Does she have to be registered with the town hall? How many days per year is she physically in NL? These issues are important regarding your tax status.
Make sure your M form is filed correctly and tax-efficient. Mistakes are easily made and can unnecessarily cost you a lot of money. Our expert tax advisors are happy to help you save money, time, and worries.
How does it work and what does it cost?
Would you like to know more about the possibilities of having us complete your M form? Send us an email or fill in the contact form and describe your situation and questions. One of our advisers will then indicate by email what we can do for you, what the hourly rates are and how many hours we estimate we need in your situation. For the M form, we usually need 2 to 4 hours in standard situations.
Do you want to get a better picture of what we can do for you? Check the example situations.
Do you need to file the M-form?
Do you want to know if you should apply for the M form in your situation? The M form must be submitted for the year in which you enter or leave the Netherlands. In most cases you will automatically receive an M form from the tax authorities. If you do not automatically receive the M form, it can also be requested. Not sure whether to submit an M form; then let us review your migration situation. An M form can be requested and completed up to 5 years ago.
What can we do for you?
In a migration year there are often extra options for tax benefits. But these are easily missed. The M form has been expanded and a costly mistake is easily made. As experienced tax advisers, we take care of the M form for you, so that you can be sure that it has been filed correctly and tax-efficient. We look at your entire situation so that we do not miss any opportunities for tax benefits, but also do not overlook tax obligations. We do not offer assistance if you want to file the M form yourself.
What about the deadline?
In most cases, the deadline for the declaration is July 1. If you let us take care of your M-tax return, we usually request an extension. After completing the form, it will take a few months before you receive a provisional assessment. It can then take up to three years before you receive the final assessment. If you would like to outsource the completion of the M declaration to us or submit your situation to us first, please contact us.
Examples of M form situations in the Netherlands
You started working in August 2020 in Rotterdam. You did not receive a notification to file a tax return but wanted to file it anyway. At first, you wanted to file an M form but you did not understand dutch and were not sure. Since on the Belastingdienst website you saw that you could submit your tax return as well and that all my data was already filed, you submitted it this way. It was accepted and returned to you. However, your colleagues told you again that for the first year working in NL you need to submit the M form anyways. And that probably next year the Tax office will ask back what was returned to you now.
We assume that the assessment you received was provisional and that it could yet change. It could be that your refund was too high or not high enough. Please send us a copy of your submitted tax return as well as your immigration date, annual salary statement and December pay slip. We will then have a look and advise what should be done.
You are a Greek national that lived in the Netherlands from 2014 until 2020 working full time in a company with a fixed salary. You moved back to Greece on January 1st, 2020. In that year you did not receive any income in the Netherlands, but you did keep your apartment until July 2019 and then deregistered from the council in Amsterdam. You originally filed a regular tax return for 2020, but received an M-form from the tax authorities, notifying me that an M-form is the only tax return form they will accept in my case. What can our office do for you in this case?
It may be advantageous to correct the emigration date to the beginning of the year 2020. Would you please send us a copy of your 2019 tax return as well as a copy of the 2020 tax return that you submitted incorrectly? In this case, it is already important whether the property was already for sale since January 1st, 2020.
You are an Italian ex-pat living in the Netherlands. You moved to the Netherlands in 2018 for your studies and started working in the Netherlands in 2019. You have declared your tax returns from 2018 (till 2020) yourself but never filed an M-form. In your 2020 tax return, you deducted your study costs. Initially, you received tax back, but later the Tax office asked you to pay the received amount back to them. Their reason is that you never filed an M-form and never declared these study costs before. You want to know how to proceed.
In your situation indeed an M-form needs to be submitted for 2018,, appeal against the 2019 final assessment is needed, appeal against the 2020 final assessment, and consequently submitting the 2021 tax return. If you would like to proceed we will send you a list with information that we need.
You emigrated or immigrated together with your partner. You are tax partners. Is it sufficient if you process your partner’s data and income in the M declaration, or does your partner have to fill in an M form?
In the event of migration, it is necessary that both taxpayers submit an M form.
In the year in which you emigrated, you partly worked in the Netherlands as an employee and partly from your own company. You are wondering how to file your M form.
With your emigration, the sole proprietorship has also moved and should be deregistered. A sole proprietorship is not a separate entity. Annual accounts should be prepared for the Dutch period in the migration year and then the company should be deregistered. In a number of cases, a Dutch EMS can continue to exist.
You moved back to your home country last year for work. Your family remained in The Netherlands to finish school. You visited your family regularly. You have deregistered from The Netherlands and received an M form from the tax authorities with the request to complete it. Is this correct?
Since your family still lived in the Netherlands, your life center was still in the Netherlands. In that case, you remain taxable in the Netherlands. An exemption can then be requested for the days worked in England, as well as for the national insurance contributions. consequently, your deregistration and the M-form may not be correct.
You moved to live and work in The Netherlands in 2020. However, you did not register in the Netherlands until 2021. You subsequently received an M-ticket for 2021.
In your situation, a bill of exchange may need to be applied because you have in fact already emigrated in a previous year. In practice, however, exchanging a banknote at the tax authorities is often difficult.
Are you leaving the Netherlands (again)? Do you want to know how to optimize your moving situation tax-wise? If you seek tax advice in an early stage you can make maximum use of tax refund opportunities.
Change in tax status
Do you still have income from or assets in the Netherlands after your move? In that case you will still have to pay income tax in the Netherlands but as a non-resident taxpayer. We can advise you on how to structure things in a tax-efficient way. Do not forget to deregister with the city council when you are leaving the Netherlands. If you forget to deregister, the tax authorities will continue to view you as a domestic taxpayer, and tax you as such.
Sell of keep your house after leaving the Netherlands?
If you own houses in more than one country it can be quite complicated to oversee what is the best step to take. We can advise you whether it is more profitable tax-wise to sell or keep the house when you leave the Netherlands. And in case you keep it, whether renting it out or keeping it for your own use is best.
M form
For the year in which you have left the Netherlands, you will have to file an M form. This form gives you several extra refund opportunities. It is important to have your entire situation carefully considered since costly mistakes are easily made. Our tax advisors can help you with filing the M form correctly and make sure you do not miss any tax refunds.
Example situations of leaving the Netherlands
You are planning to move to Qatar for work next February. You are still wondering if your wife and two children should move at the same time as you or finish the school year in the Netherlands and move this summer. This will also depend on the tax implications; you want to avoid paying tax in the Netherlands.
In the ideal situation, you deregister together at the same time prior to receiving income from the UAE. In that case, your tax liability in the Netherlands will stop in Februari (Except housing tax in case you still own a house in NL). If your wife and children stay in the Netherlands for a while you are still taxable in NL since your family lives in NL and thus your center of life is in NL. This leads to tax liability in NL. If you choose this scenario we can advise you on double taxation relief possibilities.
You and your wife are from the UK and have been living in NL for the last 12 years. You will stop working at the end of next month and want to understand the taxation impact of leaving the Netherlands this year or staying in the NL for another year. You have considerable savings and investments.
We will be glad to help and sort out the tax implications of both options. It depends on whether you will also receive a pension from the UK, where you will be spending the most time, and if you also have property here and/ or in the UK.
If, as a resident, your worldwide income is taxable in the Netherlands it may also be (partly) subject to taxation elsewhere, resulting in double taxation. In most of these cases double taxation relief is available through a tax credit which exempts you from paying tax in the Netherlands on this same income.
In some situations however, income could be taxable in two countries or not taxable at all. If your salary is earned in different countries a salary split often offers possibilities to reduce tax. To define in which country a salary is taxable the 183 days rule is applied in most countries. Contact us to see if this applies to you too.
US citizens
Special regulations apply to US citizens, who remain taxable in the USA, making available further tax planning opportunities. International organisations often have special policies on taxation. This could for example result in exemption of taxation on wages and pensions.
As the rules and forms of double taxation regulations can be different from one country to the next, your particular situation will have to be looked into carefully and the best tax planning structure will have to be worked out. Please write to us and present us with your particular (double taxation) situation and we will search out the most advantageous solution.
Example situations of double taxation relief
You are a South African citizen and intend to emigrate to the Netherlands. From 2022 you will also receive a company pension in the UK, which is partly earned by working abroad and tax-free. However, you are paying income tax on the other part of my pension from the company. You are planning to move to the Netherlands, where you already have a property and will be a tax resident. You want to know what your tax obligations in NL are, given that you already pay the tax in the UK.
Have you submitted tax returns in NL since you have your NL property? If you move to NL you will become taxable for your worldwide income and wealth. If the UK is entitled to tax you then NL will grant a double taxation deduction. This is something we will need to look into. Generally, tax is levied based on the treaties in the country of residence. To give you an idea of the tax consequences we would need an overview of your total annual income as well as your worldwide wealth.
You have recently moved to NL as an ex-pat. You are employed in NL and at the same time employed by the same employer’s headquarter in South Africa. You will be receiving a Dutch salary and also a salary from SA. Since you will be staying in NL for over 183 days you are wondering if your SA salary is taxable in NL. You would like to understand better the tax implication of your SA income.
Your question is relevant; the point is really: where is your center of life? Do you live in NL or do you live in SA? Where are you registered? If your center of life is in NL you need to declare your worldwide income. The 183-day rule is only applicable if you don’t live in NL. Where do you work for your SA income? If you don’t physically work in SA it is questionable why not all income comes via the NL pay roll.
Do you need tax advise on how to minimize wealth tax in your international living or job situation? Are you (considering) moving to the Netherlands and want to understand wealth tax implications. Or is your 30% ruling ending and do you have worldwide assets? Check the example situations or submit your own situation to us directly. One of our advisors will give you a detailed response and let you know how we can minimize your Box 3 tax obligations.
What is Box 3 tax actually?
The Dutch capital gains or wealth tax is in fact nothing more than the tax on fictitious income from savings and investments; the so-called Box 3 tax, although ‘under construction’. The reference date for taxed box 3 assets is January 1. A recent development is that due to a High Court decision on box 3, the tax authorities have confirmed that no box 3 tax assessments will be raised for the time being. We would not advise taking any action with regards to saving on box 3 taxation until there is more clarity as to how the Box 3 tax will work out. The High Court concluded that the fictitious return on investment often leads to a relatively heavy financial burden, especially if taxpayers’ assets are mostly savings.
End of 30% ruling
When your 30% ruling ends you become regularly taxable in the Netherlands for your worldwide wealth (Box 3 tax) and you will have to declare these in your tax return. Make sure you do this properly to avoid high fines. In case you are still under the 30% ruling but have not opted for partial non-domestic taxation you will also have to declare your (worldwide) assets in box 3. Dutch real estate (not the owner-occupied first dwelling) is always taxable, also during the 30% ruling period. We do recommend double-checking if you have correctly opted for partial non-domestic taxation since a mistake can be easily made. In case you forgot to opt for partial non-domestic taxation we can check what tax obligations you have.
Not the entire box 3 capital is taxed. In 2022, the first €50,650 (double for tax partners) will be exempt. This is called the tax-free allowance. In 2021 this was still €50,000 (€100,000 for partners). Anyone who saves green and/or invests green is eligible for additional tax-free capital of €61,215 (2022).
Box 3 tax rates
In 2021, the rate on the notional return in box 3 has been increased to 31%. This rate will not be adjusted in 2022.
Below is a schematic representation of the box 3 tax in 2021 and 2022 with 4 categories of wealth bases.
Fictitious return
From 2017, a statutory regulation was introduced, changing the fictitious or fixed return. Already since 2017, the actual return that people achieve on their net wealth (excluding the equity capital on their own home) is not relevant. Box 3 has three rate brackets. However, the Tax and Customs Administration assumes that wealthy people also invest a lot. This means that, depending on the size of the wealth, it is assumed that part of the wealth is saved and part is invested (the so-called ‘asset mix’). The return that is expected to be achieved for both capital elements has been laid down by law (the fixed amount). This does not take into account the actual choice of taxpayers or the actual return. According to the tax authorities, investments yield much more, so in the fictitious world of the tax authorities, wealthy people in The Netherlands normally invest 33 to 100 percent of their wealth in shares, investment funds, or real estate. There is as yet no prospect of taxation on the wealth in box 3 over the actual income.
Saving tax in box 3
The reference date for taxed box 3 assets is January 1, so you need to make sure the amount is as low as possible on that date. Here are a few tips to reduce your assets in a smart way before 1 January next year. It is recommended to have an expert tax consultant check which of these or other options apply to your situation:
If you have substantial assets, it could be an option to set up an OFGR or BV to save box 3 tax;
Make a gift to a relative or non-relative that will be used for the purchase, repayment, or renovation of a home that is or will be a primary residence. Till 2024 an amount of approx. € 106.671.is free of gift tax;
Use your savings to pay off part of the mortgage on the primary residence (box 1). In addition to wealth tax, this often also saves you some mortgage interest;
Deposit money into an annuity.
Example situations of declaring assets abroad
You are from the UK and your wife is Dutch. Together you have been living abroad in several countries for the last 8 years and are living in the US now. You own three houses in the UK and your wife owns a house in the Netherlands. You also own some stock options which were already taxed in both the UK and US. You are both working for a US employer. You are considering moving to the Netherlands or to the UK, but are not sure what would be best tax-wise since you have some assets abroad.
If you move you the Netherlands you will become tax liable for your worldwide income (box 1) and assets (box 3). There is no capital gains tax on, for example, shares. Since you have never lived in Since you have never lived in the Netherlands, the 30% ruling is a good option to avoid all box 3 levies for a maximum period of 5 years and to enjoy a 30% tax-free salary. For this, you need a Dutch job offer as a reason for immigration. This can be an offer from a Dutch employer, but also from an existing American employer that, for example, sets up a payroll administration in the Netherlands and can then be seen as a Dutch employer. We are happy to be of service. It is essential that you do not become a resident in the Netherlands before you have arranged a Dutch job offer. The 30% ruling does not apply to your girlfriend as she has Dutch nationality and has not been away from the Netherlands long enough. She may, however, benefit from the exemption in box 3, provided you are tax partners. With the 30% ruling, the Netherlands will undoubtedly prove to be the most favorable tax climate. It might be wise to also check this in the UK.
You are working for an international organization as an ex-pat in the Netherlands. You are not liable for income tax in the NL, but have been filing your taxes anyway for the “wealth tax”. Your American partner is still working for a US company and would like to move to the NL permanently but keep his job. You have a Dutch living together arrangement. You are looking for a reliable tax consulting company who would be able to help us in this situation and, most importantly, avoid him being heavily taxed by both countries once he moves over here.
Since you are working for an international organization it is important you can check if there is an exemption part for declaring your wealth in box 3. If your partner immigrates he will become taxable for his worldwide income and wealth. Double taxation deduction should be looked for in the US as the treaty appoints the right to tax to the country of residence. It would be most advantageous if your partner got an employment offer from an NL employer – which could be the US employer setting up as an NL employer – and consequently immigrate. In addition, this would give scope for the 30% ruling.
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