Netherlands — Tax: Tax Residency

Why this matters

Tax residency can affect an individual's tax liability, potential for double taxation, and access to social benefits and tax credits.

Key facts

• If you live in the Netherlands you have resident taxpayer status and are taxed on worldwide income.
• If you live abroad with Dutch-source income you are a non-resident taxpayer taxed on that income only.
• Relief from double taxation is available under bilateral tax treaties.
• Where there is no treaty, unilateral relief rules still apply.

Steps

1. Determining Tax Residency — The Dutch tax authorities use a combination of factors, including physical presence, employment, and personal circumstances, to determine tax residency. Individuals with 183 days or more physical presence in the Netherlands within a calendar year may be considered tax residents.
2. Impact of Tax Residency — Tax residency can affect an individual's tax liability, potential for double taxation, and access to social benefits and tax credits. Relocating individuals should consult official sources or a professional for personalized advice on their specific situation.