What does liable for tax payment mean for you?

The Domicile Principle

The domicile principle is a fundamental principle in tax law.
It determines in which country someone is liable to pay tax, and thus forms the basis for all decisions regarding the payment of income, wealth and social security taxes.
For both individuals and companies, the fiscal domicile is decisive for the question of where income is taxed and which legislation applies.

The domicile principle is used by the Dutch Tax and Customs Administration, but is also used internationally in tax treaties and EU regulations.

Legal basis

The domicile principle is laid down in several laws and treaties:

• Article 4 of the General Tax Act (AWR) – stipulates that someone is deemed to reside in the Netherlands if their place of residence is actually here;
• Article 2.1 of the Income Tax Act 2001 – regulates domestic tax liability based on place of residence;
• Article 2.3 Wet IB 2001 – determines foreign tax liability when residing outside the Netherlands;
• Article 4 of the OECD Model Tax Convention – contains the international treaty definition of “resident of a contracting state”;
• EU Regulation 883/2004 – determines for social security in which country someone is considered a resident.

These provisions together form the legal framework for determining the fiscal domicile.

Core of the residence principle

The starting point of the residence principle is simple:

“Whoever lives in the Netherlands is taxable in the Netherlands on their worldwide income.”

It follows that:

• Domestic taxpayers are taxed on all their income, regardless of where it is earned;
• Foreign taxpayers are only taxed on their Dutch sources of income.

The residence principle therefore ensures that someone is only taxed as a resident in one country, in order to avoid double taxation.

Actual place of residence: the fiscal criterion

The Tax and Customs Administration does not only look at the formal address or registration in the Personal Records Database (BRP), but at the actual circumstances.
The fiscal residence is determined on the basis of where someone actually lives and resides.

Important criteria include:

1. Where is the permanent home (main residence)?
2. Where does the family or partner live?
3. Where are the personal possessions and bank accounts located?
4. Where does one work or study?
5. Where is the center of economic and social interests located?
6. How long and how regularly does someone stay in each country?

Example:
Someone is still registered in the Netherlands but actually lives in Belgium, works there and has his family there.
Despite the Dutch registration, he is tax resident of Belgium according to the place of residence principle.

Case law on determining residency

The Supreme Court has elaborated on the principle of residency in established case law.
According to the judgment HR 12 April 1978, BNB 1978/252, a person's residence is located:

“where he has the permanent center of his personal and economic interests.”

Later judgments confirm that the actual circumstances weigh more heavily than formal registration or nationality.
Temporary stays or double residences are also assessed based on the actual ties with a country.

Double residency and the “tie-breaker rule”

In international situations, someone may meet the residency criteria of two countries at the same time.
To prevent both countries from levying full taxes, tax treaties (according to Article 4 OECD Model Convention) contain the so-called tie-breaker provision.

The order of assessment is:

1. Where is the permanent home located?
2. Where is the center of vital interests (personal and economic ties)?
3. Where does one usually stay?
4. What nationality does one have?
5. If this does not provide a solution, both tax authorities decide in consultation.

Practical example:
A Dutch citizen lives partly in Spain (holiday home) and partly in the Netherlands.
His family, work and bank account are located in the Netherlands.
According to the Netherlands-Spain treaty, he remains a fiscal resident of the Netherlands.

Application for individuals

The principle of residence not only determines where one is liable for tax, but also:

• Where to file a tax return (P-, M- or C-form);
• Whether one is entitled to tax credits and deductions;
• Whether one can be a qualifying non-resident taxpayer;
• Where to pay social security contributions and healthcare contributions.

Example:
An employee moves to Germany on September 1, 2025, but continues to work in the Netherlands until December.
Until August 31, domestic tax liability applies, after that foreign tax liability.
The fiscal separation is recorded via the M-form.

Application for companies

A similar principle applies to companies: the place of management and establishment determines the tax liability.
A company is subject to domestic tax if:

• the actual management is exercised in the Netherlands, or
• the company is established in the Netherlands.

If the management is transferred abroad, the Netherlands often remains authorized to levy tax on profits made in the Netherlands, unless a tax treaty provides otherwise (Article 7 OECD Model Convention).

Influence on social security and allowances

The principle of residence also has an impact in other domains:

• Social security: one is insured in the country where one lives and works (EU Regulation 883/2004);
• Health insurance and healthcare allowance: only for those insured under the Dutch Zvw;
• Child benefit and child-related budget: dependent on the place of residence of parent and child;
• Rent allowance: only for actual occupation of a Dutch home.

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Control and Evidence

The Tax and Customs Administration uses various means to determine the place of residence:

• BRP registration;
• Information from foreign authorities (via CRS or EU exchange);
• Bank transactions, energy consumption and residence patterns;
• Statements from employer, school or family.

In case of doubt, the inspector can conduct a residence investigation, in which both administrative and factual data are assessed.

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Importance of Emigration

The principle of residence plays a central role in emigration:

• It determines from which date one is no longer a domestic taxpayer;
• It determines which part of the income is still taxed in the Netherlands;
• It influences allowances, premiums and pension rights;
• It forms the basis for completing the M-form.

An unclear place of residence can lead to additional assessments or double taxation, especially if the country of residence still considers the Netherlands as a “fiscal resident”.

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Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, emigrants and international employees can easily compare recognized tax advisors who specialize in domicile determination, emigration and cross-border taxation.
These specialists help with:

• determining the tax domicile;
• preventing double taxation;
• applying for domicile certificates;
• correctly submitting the M or C form.

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Conclusion

The domicile principle is the cornerstone of Dutch and international taxation.
It determines where a person or company is taxable, which taxes apply and how treaties are applied.
The actual circumstances are decisive, not the formal registration.
Correct application prevents double taxation, loss of rights and complex disputes between countries.
If in doubt about the domicile or the tax consequences of emigration, expert advice is indispensable.

 

Working in the Netherlands with a foreign residence

Anyone who lives abroad but works (partly) in the Netherlands is subject to specific rules for taxation, social security and payroll tax.
In that case, it is not the place of residence, but the place where the work is performed, that determines the Dutch taxing power.
This situation often occurs with cross-border workers, self-employed persons with Dutch clients, and employees who temporarily perform assignments in the Netherlands.

The distinction between country of residence and country of work is legally regulated through national tax legislation, international treaties and EU regulations.

Legal framework

The taxation of income from work in the Netherlands is based on:

• Article 7.1 and 7.2 Wet inkomstenbelasting 2001 (Wet IB 2001) – stipulates that income from work performed in the Netherlands is taxed in the Netherlands;
• Article 15 of the OECD Model Tax Convention – regulates which country may levy tax on income from employment;
• Article 4 AWR (residence determination) – distinguishes between domestic and foreign tax liability;
• EU Regulation 883/2004 and 987/2009 – determines which country may collect social security contributions;
• Bilateral tax treaties between the Netherlands and the employee's country of residence.

These rules together determine whether someone in the Netherlands has to pay tax and/or social security contributions on their income from work.

Domestic or foreign tax liability

The place of residence initially determines whether someone is a domestic or foreign taxpayer.

A foreign employee with Dutch salary is therefore taxed in the Netherlands on that salary, even if he is not a resident.
The employer must then withhold wage tax and social security contributions.

Tax treaties and the 183-day rule

Most tax treaties are based on Article 15 of the OECD Model Tax Convention, which includes the so-called 183-day rule.
This rule determines where the salary is taxed:

Salary is taxed in the country where the work is performed,
unless all three of the following conditions are met:

1. The employee stays in the country of work for less than 183 days per year;
2. The salary is paid by an employer who is not established in the country of work;
3. The wage costs are not borne by a permanent establishment in the country of work.

If these conditions are met, the country of residence remains competent to levy taxes.
As soon as one condition does not apply, the Netherlands is competent.

Example:
A Belgian works 200 days a year in the Netherlands for a Dutch employer.
Because he works more than 183 days in the Netherlands, the Netherlands is authorized to levy taxes.
The Dutch employer withholds payroll tax and premiums.

Social security: where are premiums paid?

In addition to tax, the social security obligation also plays a role.
According to EU Regulation 883/2004, an employee may only be socially insured in one EU country — usually the country where he actually works.

The Social Insurance Bank (SVB) can issue an A1 declaration to record in which country someone is socially insured.
This document prevents double premium payments.

Tax treatment of salary from the Netherlands

Salary from employment in the Netherlands is taxed via the wage tax, which consists of:

• Wage tax (advance payment on income tax);
• National insurance contributions (AOW, Anw, Wlz);
• Healthcare Insurance Act contribution (Zvw).

In many cases, foreign employees receive an annual statement at the end of the year, which they can use to file a Dutch tax return (C form) to request a refund or correction.

Example:
An employee from Germany works 4 days a week in the Netherlands and 1 day at home in Germany.
The Netherlands levies tax on 80% of his salary (4/5), Germany on 20%.
Any double taxation is settled via the Netherlands–Germany tax treaty.

Self-employed individuals working in the Netherlands

For self-employed individuals (zzp’ers), the Netherlands is allowed to levy tax on the profit insofar as it is attributable to activities in the Netherlands.
There is Dutch tax liability if there is a permanent establishment in the Netherlands or if substantial work is performed in the Netherlands.

Relevant provisions:

• Article 7 OECD Model Tax Convention (business profits);
• Article 14 (independent personal services, in older treaties);
• Article 3.8 Income Tax Act 2001 (definition of profit from enterprise).

Example:
A Belgian consultant works 6 months a year for Dutch clients and has an office space here.
The Netherlands may levy tax on the profit attributable to the Netherlands, because there is a permanent establishment.

Qualifying non-resident taxpayer

An employee or self-employed person who lives in another EU or EEA country but earns most of their income in the Netherlands can opt for the status of qualifying non-resident taxpayer (Article 7.8 Income Tax Act 2001).
This status offers virtually the same tax benefits as for residents of the Netherlands.

Conditions:

• At least 90% of the global income is taxed in the Netherlands;
• The taxpayer can demonstrate this with an income statement from the country of residence;
• Application entitles to tax credits and personal deductions.

Example:
A German employee works full-time in the Netherlands and has no other income.
As a qualifying non-resident taxpayer, he can make use of mortgage interest relief for his German home.

Administrative obligations

Specific obligations apply to foreign employees and self-employed persons with work in the Netherlands:

Domestic Tax Liability

Domestic tax liability forms the basis of the Dutch tax system.
Anyone who lives in the Netherlands is considered a domestic taxpayer and is therefore liable to tax on their worldwide income – i.e. all income, wherever earned in the world.
This principle is enshrined in Dutch legislation and forms the starting point for both income tax and corporation tax.

Legal framework

Domestic tax liability is laid down in the following provisions:

• Article 2.1, paragraph 1, Income Tax Act 2001 (Wet IB 2001)
  “A domestic taxpayer is the natural person who lives in the Netherlands.”
• Article 4 General State Taxes Act (AWR)
  “Where someone lives is assessed according to the circumstances.”
• Article 2 Corporation Tax Act 1969 (Wet Vpb 1969)
  For legal entities: domestic tax liability upon establishment in the Netherlands.

These provisions make it clear that the domestic tax liability arises directly from the place of residence (for natural persons) or the place of establishment (for legal persons).

The residence principle as a basis

The domestic tax liability is derived from the residence principle:
whoever has their place of residence in the Netherlands is fully taxable.
The concept of 'place of residence' is not exclusively legal (BRP registration) but mainly determined factually.

Important factors in assessing the place of residence are:

• where the person resides permanently;
• where the family lives;
• where personal and economic interests lie;
• where work, property or income are located.

The Tax and Customs Administration assesses these factors in conjunction — it is about the center of someone's life interests.

Example:
A person who works in the Netherlands, has his family here and owns a home, is considered a domestic taxpayer, even if he occasionally stays abroad.

Scope of Domestic Tax Liability

Domestic taxpayers are taxed on their worldwide income.
This means that the Netherlands may levy taxes on:

To avoid double taxation, the Netherlands grants deduction or exemption via the Decree for the Prevention of Double Taxation 2001 or via bilateral tax treaties.

Rights and benefits of domestic taxpayers

Domestic taxpayers are entitled to all tax benefits that the Netherlands offers, including:

• General tax credit and various employment and elderly person's tax credits;
• Deductible items such as mortgage interest relief, donations, healthcare costs and alimony;
• Access to allowances (healthcare allowance, rent allowance, child budget);
• Offsetting of losses and fiscal partnership;

These rights are not or only partially available to foreign taxpayers.

Example:
An employee residing in the Netherlands with savings in Germany pays tax on the foreign return in the Netherlands, but can avoid double taxation via the tax treaty.

Tax obligations of domestic taxpayers

In addition to rights, domestic tax liability also entails various obligations:

1. Income tax return obligation – annual filing of a P form;
2. Payment of income tax and national insurance contributions (AOW, Anw, Wlz);
3. Information obligation – reporting of foreign income and assets (banks, real estate, investments);
4. Obligation to file a correct return – punishable by concealment of foreign assets (Economic Offences Act).

Control by the Tax Authorities

The Tax Authorities have extensive possibilities to check foreign income and assets.
Through the Common Reporting Standard (CRS) and the EU directive DAC2 the Netherlands automatically receives data from foreign banks and tax authorities about:

• bank accounts and savings;
• investments and securities portfolios;
• dividends, interest and sales proceeds.

Domestic taxpayers are required to declare these incomes, even if the bank account or investment is held in another country.

Exceptions and special situations

There are some special categories of domestic taxpayers, such as:

• Diplomats or civil servants abroad: remain subject to domestic tax if they are employed by the Dutch government;
• Students or temporarily seconded employees: can sometimes remain tax resident, depending on the duration and circumstances of stay;
• Cross-border workers: can be subject to domestic or foreign tax, depending on place of residence and country of work.

Practical example:
A Dutch teacher who temporarily works in Curaçao for three years for the Dutch government remains subject to domestic tax for Dutch tax purposes because he is employed by a Dutch public body.

Companies and legal entities

For companies, the principle of domestic tax liability applies under Article 2 of the Corporate Income Tax Act 1969.
A company is subject to domestic tax if it:

• is established in the Netherlands (statutory seat or actual management);
• or its management and central decision-making take place from the Netherlands.

The domestic corporate income tax liability applies to:

• Private and Public Limited Companies;
• Foundations and associations that pursue profit;
• Cooperatives and mutual insurance companies.

Consequences of emigration

Upon emigration, the domestic tax liability ends on the day of departure.
This changes:

• the scope of taxation (only Dutch income);
• the obligation to pay premiums for national insurance;
• the right to deductions and allowances.

The year of departure requires an M-form, which separates income before and after emigration.
In addition, upon emigration, the Tax Authorities may impose protective assessments on accrued pension rights or business assets.

Enforcement and sanctions

Failure to comply with the reporting obligation may lead to:

• Additional tax assessments and default fines (art. 67a and 67c AWR);
• Penalty fines for deliberately incorrect declarations;
• Criminal prosecution for fraud or concealed assets (Economic Offences Act).

The Tax and Customs Administration also uses risk-based controls on cross-border income, supported by international data exchange.

Practical advice

Domestic taxpayers who receive (partly) foreign income would do well to have their tax position assessed annually.
An expert advisor can help with:

• applying treaty exemptions;
• submitting requests for the prevention of double taxation;
• optimizing deductions and tax credits;
• complying with international reporting obligations.

Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, individuals and entrepreneurs can easily compare recognized tax advisors who specialize in domestic tax liability and international income reporting.
They offer support with:

• completing tax returns (P-form, M-form, C-form);
• assessing worldwide income and foreign income;
• applying treaty rules and exemptions;
• objection procedures against assessments or double taxation.

Conclusion

Domestic tax liability forms the foundation of Dutch tax legislation.
Anyone who lives in the Netherlands is liable to tax on their worldwide income and assets.
This entails both rights and obligations: access to deductions and allowances, but also the obligation to make a full declaration.
Due to growing international supervision, correct compliance is essential.
A clear assessment of the place of residence and expert tax advice prevent double taxation, fines and unnecessary risks.

Foreign tax liability

When someone does not (or no longer) live in the Netherlands, but does have income or assets in the Netherlands, this is referred to as foreign tax liability.
This means that you only pay tax on the portion of income that originates from the Netherlands, and not on your worldwide income.

Foreign tax liability is therefore the mirror image of domestic tax liability.
The concept is crucial for anyone emigrating, working in the Netherlands from abroad, or still holding Dutch assets such as a home, investments, or a business.

Legal Framework

Non-resident taxation is regulated in various laws and treaties:

• Article 2.3 of the Income Tax Act 2001 (Wet IB 2001) – stipulates that those who do not live in the Netherlands only pay tax on Dutch income;
• Article 7.2 of the Income Tax Act 2001 – defines the sources of Dutch income (wages, profit, assets, real estate, pension, etc.);
• Article 4 of the General Act on State Taxes (AWR) – stipulates that residency is assessed based on the factual circumstances;
• Tax treaties – divide the taxing rights between the Netherlands and the country of residence;
• Decision on the Prevention of Double Taxation 2001 – regulates the crediting or exemption of foreign tax in the Dutch tax return.

These provisions together form the legal framework that determines when the Netherlands is still allowed to levy tax on persons residing abroad.

What is non-resident tax liability?

A person or company is non-resident taxpayer when:

1. They do not live or are not established in the Netherlands, and
2. They receive income from the Netherlands that is taxable in the Netherlands according to the law or a treaty.

Therefore, it is not about nationality, but about the place of residence or establishment and the source of income.

Example:
A Dutch national moves to Spain but still receives rental income from a property in Amsterdam.
They are a non-resident taxpayer and pay tax in the Netherlands on this income, but not on their Spanish income.

Tax on Dutch Income

In cases of foreign tax liability, the Netherlands may only levy tax on specific income that has a direct connection with the Netherlands.
These are exhaustively listed in Article 7.2 of the Income Tax Act 2001.

Practical example:
A pensioner living in Portugal who receives a Dutch supplementary pension remains liable for tax in the Netherlands on that pension, unless the tax treaty with Portugal stipulates otherwise.

Filing obligation and forms

Non-residents file a tax return using the C-form (for natural persons) or a non-resident corporate income tax return (for legal entities).
The C-form is the counterpart to the P-form (resident) and the M-form (emigration year).

Important administrative obligations:

1. Registration with the Dutch Tax Administration for Foreign Countries;
2. Declaration of Dutch income and assets;
3. Provision of an income statement from the country of residence (for certain deductions);
4. Keeping of supporting documents (annual statements, WOZ assessment, pension statements);
5. Application for avoidance of double taxation if both countries levy taxes.

Status of qualifying non-resident taxpayer

Individuals residing in another EU or EEA country can opt to be treated as if they were a resident of the Netherlands, provided certain conditions are met.
This arrangement (Article 7.8 of the Dutch Income Tax Act 2001) prevents emigrants from losing tax benefits on almost all their income from the Netherlands.

Conditions:

• At least 90% of the world income is taxed in the Netherlands;
• The income in the country of residence is negligible or not taxed;
• The taxpayer provides an income statement from the foreign tax authorities.

Advantages:

• Access to tax credits and deductions (such as mortgage interest);
• Application of fiscal partnership;
• Entitlement to personal deductions.

Example:
A Belgian employee who works entirely in the Netherlands is not taxed in Belgium on their income.
They can qualify as a non-resident taxpayer entitled to Dutch deductions.

Tax treaties and avoidance of double taxation

Most countries have a bilateral tax treaty with the Netherlands that regulates which country may levy taxes.
These treaties are based on the OECD Model Tax Convention and contain provisions on:

• salary (Article 15),
• business profits (Article 7),
• pensions (Article 18),
• real estate (Article 6),
• prevention of double taxation (Article 23).

The Netherlands usually applies one of two methods in these treaties:

Example:
A resident of Germany receives a Dutch pension.
According to the tax treaty between the Netherlands and Germany, the Netherlands may levy tax, Germany grants an exemption.
This prevents double taxation.

Social security and contributions

For non-residents, social security obligations depend on:

• the country where you work;
• the country where you live;
• whether an EU regulation or treaty applies.

Within the EU, the principle of one social security state applies (Regulation 883/2004).
If you work in the Netherlands, you remain insured in the Netherlands, even if you live abroad.
If you only work abroad, the Dutch premium obligation ceases.

Practical example:
A resident of Belgium works 3 days a week in the Netherlands and 2 days in Belgium.
Because he works substantially in Belgium, he is socially insured in Belgium (country of residence principle).

Foreign tax liability for companies

Legal entities (such as private limited companies or public limited companies) are subject to foreign tax liability if they:

• are not established in the Netherlands, but
• generate income from the Netherlands (for example, through a permanent establishment or Dutch real estate).

The rules for this are laid down in Articles 3 and 17 of the Corporate Income Tax Act 1969 (Wet Vpb 1969) and in tax treaties.
The Netherlands then only levies tax on the profit attributable to the Netherlands.

Enforcement and information exchange

The Tax Administration receives information about foreign income from Dutch and former residents through international cooperation mechanisms:

• Common Reporting Standard (CRS) – automatic exchange of bank data;
• DAC6 Directive – reporting of cross-border tax arrangements;
• EU Regulation 904/2010 – cooperation between tax authorities on VAT.

Foreign tax authorities also exchange information about assets located in the Netherlands belonging to foreign residents.
This allows the Netherlands to exercise control over compliance with foreign tax obligations.

Practical Points to Consider

1. Check annually whether you qualify as a foreign taxpayer or a qualifying non-resident taxpayer.
2. File the correct tax return on time (M- or C-form).
3. Request a certificate of residence or income statement from the foreign tax authorities.
4. Check the tax treaty between the Netherlands and your country of residence to prevent double taxation.
5. Report any changes (work, pension, property sale) immediately to the Dutch Tax Administration for foreign affairs.

Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, emigrants and foreign workers can easily compare recognized tax advisors who specialize in international tax returns, cross-border tax liability, and treaty interpretation.
These experts assist with:

• determining the correct tax status;
• applying treaty provisions;
• completing the C or M form;
• requesting exemptions and refunds;
• coordinating with the foreign tax authorities regarding double taxation.

Conclusion

Foreign tax liability applies to anyone who lives outside the Netherlands but still has income or assets in the Netherlands.
The Netherlands only levies tax on the portion that can be directly attributed to the Netherlands.
The correct application of tax treaties, income statements, and exemptions prevents double taxation and unnecessary tax burdens.
A correct assessment of fiscal status and expert guidance are essential for any emigration or cross-border work situation.

Income from real estate with foreign tax liability

Anyone who lives abroad but owns a house, plot or other real estate in the Netherlands remains liable for tax in the Netherlands for the income from that property.
This form of taxation is based on the source principle: real estate is always taxed in the country where it is located, regardless of where the owner lives.

This means that foreign taxpayers also have to deal with Dutch reporting obligations, WOZ valuation and possibly also local levies every year.

Legal framework

The taxation of Dutch real estate with foreign tax liability is regulated in several laws and treaties:

• Article 7.2, paragraph 1, part b, Income Tax Act 2001 (Wet IB 2001) – stipulates that income from immovable property located in the Netherlands is taxable;
• Articles 5.1 and 5.3 Wet IB 2001 – regulate the taxation in Box 3 (savings and investments) for non-rented or privately held properties;
• Article 3.92 Wet IB 2001 – deals with income from temporary rental of one's own home;
• Article 6 of the OECD Model Tax Convention and bilateral tax treaties – stipulate that the country where the immovable property is located may levy taxes;
• Valuation of Immovable Property Act (Wet WOZ) – determines the value of real estate as the basis for taxation.

Tax liability on Dutch real estate

A foreign taxpayer pays tax in the Netherlands on income from Dutch real estate.
This includes all income from the possession, rental or sale of real estate located in the Netherlands.

Taxable situations

Example:
A Dutch citizen living in Spain rents out an apartment in Utrecht.
The rental income is not taxed directly, but the property value is included in Box 3.
The Netherlands levies wealth tax on this, Spain can (depending on the treaty) apply exemption or credit.

The role of the WOZ value

The WOZ value (Valuation of Immovable Property) forms the fiscal basis for:

• Box 3 levy in income tax;
• Municipal property tax (OZB);
• Water board tax;
• Possible sewer and waste charges.

For foreign owners, the municipality determines a WOZ assessment annually, even if they live abroad.
The WOZ value is based on the market value of the property on January 1 of the previous year.

Objection:
Foreign taxpayers can also object to the WOZ assessment within 6 weeks of the date.

Sale of Dutch real estate

The sale of a house or building in the Netherlands by a foreign owner has tax consequences:

1. Individuals (Box 3):
   The increase in value is not taxed separately; the annual Box 3 levy is already a lump sum.
2. Entrepreneurs or investors (Box 1 or Vpb):
   Profit from the sale of real estate that belongs to business assets or a real estate BV is taxed in the Netherlands.
3. Transfer tax and VAT:
   The buyer pays transfer tax; VAT may apply to new construction.

Practical example:
An investor living in Germany sells a Dutch commercial property at a profit.
Because the property belongs to his business assets, he must pay income tax on the capital gain in the Netherlands.

Double taxation and treaties

The Netherlands has tax treaties with most countries that determine which country may levy taxes on income from real estate.
According to Article 6 of almost every tax treaty:

“Income from immovable property may be taxed in the contracting state in which such property is situated.”

It follows that:

• The Netherlands may levy taxes on real estate on Dutch territory;
• The country of residence usually grants exemption or credit to prevent double taxation.

Local taxes on foreign property

In addition to income tax, foreign owners are also subject to local taxes:

• Property tax (OZB) – imposed by the municipality;
• Water board tax – contribution for water management;
• Sewerage and waste disposal charges – depending on use and regulations.

These levies are separate from income tax and are imposed directly on the owner by the municipality and water board.

Example:
A Belgian with a vacant holiday home in Zeeland receives an annual OZB assessment and water board tax, even if he does not reside there permanently.

Mortgage and deductibility

In the case of foreign tax liability, mortgage interest relief is not permitted in principle, unless the owner qualifies as a qualifying foreign taxpayer.
The following applies:

• At least 90% of the world income is taxed in the Netherlands;
• An income statement from the foreign tax authorities is available.

In that case, the foreign owner can still get a deduction for mortgage interest on his Dutch property.

Other obligations and administration

Foreign owners of Dutch real estate must take into account:

1. Declaration obligation via C form – annual statement of real estate ownership and any debts;
2. Mandatory WOZ registration – for tax base and municipal levies;
3. Retention obligation – documentation on rent, sale, WOZ, title deed and loans;
4. Payment traffic – municipal taxes are often collected via direct debit from foreign accounts.

Control and international cooperation

The Tax and Customs Administration checks real estate ownership of foreign residents via:

• the Basic Registration Cadastre (BRK);
• international data exchange (Common Reporting Standard – CRS);
• cooperation with foreign tax authorities;
• linking with WOZ and BRP registrations.

This prevents foreign property from being hidden from the Dutch tax authorities.

Practical examples

Role of jeofferte.nl

Via the independent quotation platform jeofferte.nl, foreign owners and emigrants can easily compare recognized tax advisors who specialize in international real estate taxation and cross-border tax returns.
These experts help with:

• determining the correct tax status;
• calculating Box 3 tax on Dutch real estate;
• applying for treaty exemptions;
• objecting to WOZ decisions or OZB assessments;
• tax optimization for rental or sale of real estate.

Conclusion

Income from Dutch real estate remains always taxed in the Netherlands, even when the owner lives abroad.
The taxation usually takes place in Box 3, based on the WOZ value, while local levies are imposed separately.
Tax treaties prevent double taxation, but do not exempt the owner from Dutch reporting obligations.
A correct valuation, correct declaration and knowledge of treaty rules are essential to ensure compliance and avoid unnecessary tax burden.

Entrepreneurs and self-employed individuals with foreign tax liability

When an entrepreneur or self-employed person (zzp’er) emigrates or works in the Netherlands from abroad, the tax treatment of their income changes.
The Netherlands often retains the right to levy tax on business profits attributable to the Netherlands, even if the entrepreneur themselves lives outside the Netherlands.

The distinction between domestic and foreign tax liability is crucial here.
The Tax and Customs Administration looks not only at the formal establishment, but especially at where the actual work and business activities take place.

Legal framework

The tax liability of entrepreneurs and self-employed individuals is regulated in the following laws and regulations:

• Article 7.2, paragraph 1, part a, Income Tax Act 2001 (Wet IB 2001) – stipulates that profit from business conducted in the Netherlands is taxable for foreign taxpayers;
• Articles 3.8 to 3.12 Wet IB 2001 – define profit concept and fiscal bases;
• Article 2 Corporate Income Tax Act 1969 (Wet Vpb) – regulates tax liability of companies established in the Netherlands;
• Article 7 of the OECD Model Tax Convention – allocates the right to tax business profits between countries;
• Article 5 OECD Model Convention – defines the concept of permanent establishment;
• International Assistance in Tax Collection Act (WIBB) – regulates cooperation between tax authorities in cross-border enterprises.

These provisions together form the legal framework for entrepreneurs who are active across borders or leave the Netherlands.

Company in Netherlands with residence abroad

An entrepreneur who lives abroad, but exercises a business in the Netherlands or maintains a permanent establishment, is in the Netherlands subject to non-resident tax.
The Netherlands may levy tax on the profit attributable to the Dutch business activities.

Example:
A Belgian consultant with an office space in Eindhoven advises Dutch clients.
His Belgian residence is irrelevant — he is taxable in the Netherlands for the profit earned through his Dutch establishment.

The concept of “permanent establishment”

The concept of permanent establishment is crucial for foreign tax liability for entrepreneurs.
According to Article 5 of the OECD Model Tax Convention, a permanent establishment is:

“A fixed place of business through which the business of an enterprise is wholly or partly carried on.”

This includes, among other things:

• an office, workshop, factory, studio or shop;
• a construction site or project that lasts longer than 12 months;
• a dependent agent who concludes contracts on behalf of the entrepreneur.

The following do not qualify as permanent establishments:

• storage locations;
• purchasing offices;
• preparatory or auxiliary work.

Practical example:
A German IT entrepreneur works structurally at Dutch customers on location and has a workspace here.
The Netherlands considers this a permanent establishment and may levy tax on the profit earned in the Netherlands.

Entrepreneurs within the income tax

For natural persons (self-employed, freelancers, solo proprietorships), the profit from the business is taxed in the Netherlands to the extent that it is attributable to the Netherlands.

Taxation in the Netherlands

• Foreign taxpayer – taxed on profit from business with a permanent establishment in the Netherlands;
• Domestic taxpayer – taxed on worldwide profit, regardless of where the activities take place.

The Dutch profit is calculated according to the usual rules:

• income minus business expenses;
• application of self-employment allowance and SME profit exemption, if applicable.

Example:
A Dutch self-employed person moves to Spain, but continues to carry out assignments for Dutch clients via an office in Utrecht.
The profit from these activities remains taxable in the Netherlands, because there is a permanent establishment.

Companies within corporate income tax

The following applies to legal entities (BV, NV):

• A company is domestically taxable if the actual management takes place in the Netherlands (art. 2 Wet Vpb 1969);
• It is foreign taxable if it is located abroad but has a permanent establishment in the Netherlands.

The Netherlands may then levy tax on:

• profit from the permanent establishment;
• income from real estate located in the Netherlands;
• income from participations or shares in Dutch companies.

Example:
A Luxembourg holding company owns a Dutch commercial property that is rented out.
The Netherlands may levy tax on the rental income and appreciation of that property.

Emigration of entrepreneurs (the “exit tax”)

When an entrepreneur moves his company or company abroad, the Netherlands can impose a conservative assessment.
This is a tax claim on hidden reserves, goodwill and tax provisions that have been built up in the Netherlands.

Legal basis:

• Article 25 Income Tax Act 2001 (income tax entrepreneurs);
• Article 15c Corporate Income Tax Act 1969 (corporate income tax);
• EU case law (case C-9/02 de Lasteyrie du Saillant) – states that the levy is allowed, provided that a deferral of payment is granted.

The conservation assessment is in principle only collected if:

• the company is discontinued or alienated;
• or the taxpayer no longer meets the conditions for deferral.

Example:
A Dutch BV moves its actual management to Germany.
The Tax Authorities impose a conservation assessment on hidden reserves in Dutch assets, with deferral of payment as long as the company continues to exist.

Tax Treaties for Entrepreneurs

Tax treaties prevent double taxation by determining which country has the right to tax business profits.
According to Article 7 OECD Model Convention:

“Profits of an enterprise shall be taxable only in the state where the enterprise is situated, unless the enterprise has a permanent establishment in the other state.”

The Netherlands generally uses the following approach:

VAT and wage tax for foreign entrepreneurs

Self-employed persons and companies that are active in the Netherlands can also become liable for VAT or liable for withholding wage tax.

• VAT (sales tax):
  Foreign entrepreneurs who supply goods or services in the Netherlands must register with the Tax and Customs Administration and pay Dutch VAT (art. 12 Wet OB 1968).
• Wage tax:
  Foreign employers who employ staff in the Netherlands are required to withhold Dutch wage tax and premiums (art. 6 Wet LB 1964).

Administrative obligations

Foreign entrepreneurs with activities in the Netherlands must:

1. Registration with the Foreign Tax Office (RSIN or BSN);
2. Income tax return (C form) or corporation tax (Vpb);
3. VAT registration (Apply for NL number at Tax Office);
4. Payroll tax return for personnel;

Practical examples

Role of jeofferte.nl

Via the independent quotation platform jeofferte.nl, entrepreneurs and self-employed persons can easily compare recognized tax advisors and accountants who specialize in international corporate structures, emigration and cross-border enterprises.
These experts help with:

• determining the fiscal domicile;
• avoiding double taxation;
• applying for treaty exemptions;
• calculating exit taxes and conservatory assessments;
• complying with administrative obligations in multiple countries.

Conclusion

For entrepreneurs and self-employed individuals who live or move outside the Netherlands, the Netherlands often remains authorized to levy taxes on profits attributable to Dutch activities.
The presence of a permanent establishment is decisive for foreign tax liability.
Tax treaties and EU rules prevent double taxation, but proper application requires careful analysis.
In the event of emigration or cross-border activities, expert tax guidance is indispensable to comply with Dutch and foreign regulations.

Pension and social benefits with foreign tax liability

When someone lives abroad but receives pension or social benefits from the Netherlands, the tax treatment changes.
Both the Netherlands and the country of residence can claim taxation on this income.
To prevent double taxation, the distribution of taxation rights is regulated in the Income Tax Act 2001, various tax treaties and the EU regulations on social security.

It is essential to understand which country may levy taxes, what rules apply to social security contributions, and how tax treaties regulate these situations.

Legal framework

The tax liability for pensions and social benefits in case of foreign residence is based on:

• Article 7.2 Income Tax Act 2001 (Wet IB 2001) – Dutch income includes, among other things, pension and benefit rights from the Netherlands;
• Article 3.81 Income Tax Act 2001 – defines the concept of salary including pensions;
• Article 18 OECD Model Convention – distributes taxation rights over pensions and similar remuneration;
• Article 19 OECD Model Convention – regulates government and civil servant pensions;
• EU Regulations 883/2004 and 987/2009 – determine in which country social contributions are due;
• Wage Tax Act 1964 (Wet LB) – contains provisions on the deduction of payroll tax on pension payments.

These laws and treaties together determine how the Netherlands deals with pensions and social benefits to people who live outside the Netherlands.

Tax liability on pension income

In principle, the Netherlands levies tax on pensions that have been built up in the Netherlands, even if the beneficiary lives abroad.
However, the country of residence may, on the basis of a tax treaty, have joint taxing powers or even obtain exclusive taxing rights.

Types of pension payments

Example:
A pensioner who lives in Portugal and receives AOW and pension from ABP, remains liable for tax in the Netherlands for the ABP pension (government pension), but Portugal may levy tax on the AOW if the treaty allows it.

Application of tax treaties

Most tax treaties concluded by the Netherlands follow Article 18 of the OECD Model Tax Convention.
That article generally stipulates:

“Pensions and other similar remuneration paid to a resident of a contracting state shall be taxable only in that state (country of residence), unless they are derived from the other state (source country) and have been deductible there for tax purposes.”

However, the Netherlands stipulates an exception in many treaties:
If the pension contributions were ever deductible in the Netherlands, the Netherlands may continue to levy taxes on the benefit.

Treaty practice

These treaties differ per country and per type of pension scheme, making individual advice often necessary.

Social benefits

In addition to pensions, various social benefits are also relevant for emigrants and foreign taxpayers.
These include:

• WW benefit (unemployment)
• WIA or WAO benefit (disability)
• Sickness benefit
• Child benefit and child-related budget
• Supplements to AOW or social assistance

Tax liability

Social benefits from the Netherlands remain in principle taxable in the Netherlands, because they arise from a public scheme.
Most tax treaties assign the right to tax such benefits to the source country (Netherlands).

Example:
A resident of France receives a Dutch disability benefit (WIA).
According to the tax treaty, the Netherlands remains authorized to tax this benefit.

Social security when living abroad

The insurance obligation for social security does not automatically end upon emigration.
It depends on the actual situation: working, living and receiving benefits.

According to EU Regulation 883/2004:

• one is insured in the country where one works, not where one lives;
• anyone who only receives a pension is insured in the country of residence, unless the pension comes exclusively from the Netherlands;
• the Dutch premium obligation (for AOW, Anw, Wlz) can continue as long as a benefit is received from the Netherlands.

Voluntary continuation

After emigration, one can voluntarily continue the AOW and Anw insurance via the Sociale Verzekeringsbank (SVB) in order to maintain later accrual.
The application must be submitted within 1 year of departure.

Premiums and withholding

In the case of pension payments to foreign residents, the Dutch pension provider usually withholds wage tax in accordance with the Wet LB 1964.
Depending on treaties, exemption can be requested via:

• Form “Request for exemption from payroll tax/social security contributions” from the Foreign Tax Office;
• Certificate of Residence from the foreign tax authority;
• Application of the tax treaty (art. 18 or 19).

With granted exemption, one pays tax in the country of residence, no longer in the Netherlands.

Double taxation and credit

When both countries levy tax on the same pension or benefit, double taxation is prevented by:

1. Exemption method – the country of residence does not tax, but the Netherlands does;
2. Credit method – the country of residence levies tax, but credits the Dutch levy;
3. Refund scheme – one applies for a reduction or refund of overpaid tax in the Netherlands.

Practical example:
A pensioner in Germany pays tax on his Dutch AOW in Germany, but can have the wage tax withheld in the Netherlands credited via the German-Dutch treaty.

Administrative obligations

The following obligations apply to foreign taxpayers with pensions or benefits from the Netherlands:

Control and international data exchange

The Tax Authorities exchange information about pension and benefit payments via the Common Reporting Standard (CRS) and the EU directive DAC2.
In addition, pension funds annually report payments to foreign beneficiaries to the Dutch tax authorities.

The foreign tax authority receives this information automatically, which means that double declarations or non-reporting almost always comes to light.

Practical examples

Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, pensioners, emigrants and benefit recipients can easily compare recognized tax advisors who specialize in international pension and benefit taxation.
These specialists help with:

• determining the correct country of taxation;
• applying for exemptions or treaty declarations;
• avoiding double taxation;
• calculating net pension income after emigration;
• arranging voluntary AOW continuation via the SVB.

Conclusion

Those who live outside the Netherlands but receive pensions or benefits from the Netherlands often remain (partially) liable for tax in the Netherlands.
The precise right of taxation depends on the type of benefit and the tax treaty with the country of residence.
Social security and premium payments largely follow the work or country of residence principle, but require active monitoring upon emigration.
A correct application of treaties and exemptions prevents double taxation and guarantees a correct net payment.
Professional tax guidance is indispensable in this regard.

International Tax Treaties

International tax treaties form the legal basis for the allocation of taxing rights between countries.
They determine which country may tax certain income, and prevent the same income from being taxed twice.

For anyone who lives, works or receives income abroad — such as emigrants, self-employed persons or pensioners — these treaties are essential.
The Netherlands has now concluded a tax treaty with more than 90 countries, largely based on the OECD Model Tax Convention.

Legal framework

The international tax treaties are treaties within the meaning of Article 91 of the Constitution, and therefore take precedence over national legislation.
Important legal sources are:

• OECD Model Tax Convention on Income and on Capital (OECD Model Tax Convention)
• UN Model Convention (more focused on developing countries)
• Decree for the avoidance of double taxation 2001 (BVDB 2001) – application to countries without a treaty
• Income Tax Act 2001, Corporate Income Tax Act 1969 and General Law on State Taxes (AWR) – national implementation
• Multilateral Instrument (MLI) – since 2020, allowing the Netherlands to adapt dozens of treaties at once to modern anti-abuse rules.

These regulations together determine how the Netherlands exercises and delimits international tax jurisdiction.

Purpose of Tax Treaties

The core of a tax treaty is the prevention of double taxation and the prevention of double non-taxation (the complete avoidance of taxation).
Treaties therefore regulate:

1. Which country may tax (state of residence or source state);
2. How double taxation is avoided (exemption or credit);
3. How tax information is exchanged;
4. How abuse and avoidance are countered;
5. How disputes between countries are resolved.

Example:
A Dutch citizen living in Spain receives a Dutch pension.
According to the tax treaty between the Netherlands and Spain, the Netherlands may levy taxes, while Spain grants an exemption.
This prevents double taxation.

Structure of a Tax Treaty

A tax treaty almost always follows the same structure, based on the OECD Model Tax Convention.
The most important articles are:

Residence State and Source State

Most treaties divide taxation rights between the:

• residence state – the country where someone lives;
• source state – the country where the income is earned or comes from.

The residence state usually has the primary taxation right, but the source state may often levy a limited tax on specific income, such as salary, pension or real estate.

Practical example:
A German employee works in the Netherlands.
The Netherlands (source state) may levy taxes on the salary, while Germany (state of residence) grants an exemption according to the Netherlands–Germany treaty.

Methods for preventing double taxation

Depending on the treaty, the Netherlands applies one of the following methods:

When no treaty exists, the Decree for the avoidance of double taxation 2001 is applied, which largely follows the same system.

Interpretation of treaties

Treaties are interpreted according to the Vienna Convention on the Law of Treaties (1969).
The interpretation is done:

• based on the text,
• in the light of the object and purpose, and
• with reference to the OECD commentaries.

The Dutch court (Supreme Court) regularly uses the OECD commentaries as an authoritative source in the interpretation of treaty provisions.

The Multilateral Instrument (MLI)

Since 2020, the Netherlands has applied the Multilateral Instrument (MLI), an international treaty that has amended dozens of existing tax treaties at once.
The MLI includes, among other things:

• anti-abuse provisions (Principal Purpose Test – PPT);
• rules for hybrid mismatches;
• adjustment of permanent establishment provisions;
• faster dispute resolution (mutual agreement procedure).

The goal is to prevent artificial constructions that avoid taxation.

Differences between treaties

Not all tax treaties are the same.
The Netherlands has individual agreements with each country, which means that the application can vary greatly.

Comparison of some important treaties

Tax treaties and emigration

Upon emigration, the tax treaty with the new country of residence determines:

• when the domestic tax liability ends;
• on which income the Netherlands may still levy taxes;
• how the country of residence prevents double taxation;
• how pensions, real estate and dividends are treated.

Example:
A Dutch entrepreneur moves to Spain.
The Netherlands still levies taxes on income from the Dutch company (permanent establishment) and on Dutch real estate, but Spain on worldwide income.
The treaty prevents the same profit from being taxed twice.

Tax treaties and companies

For companies, the following treaty articles are particularly important:

• Article 5 (permanent establishment) – determines whether a foreign company is taxable in the Netherlands;
• Article 7 (business profits) – allocates profit rights between countries;
• Article 9 (associated enterprises) – contains transfer pricing provisions;
• Article 25 (mutual agreement procedure) – gives companies the opportunity to have disputes between tax authorities resolved.

Practical example:
A German GmbH has a sales office in the Netherlands.
According to the treaty, the Netherlands only has the right to tax the profit attributable to this permanent establishment.

Information exchange and enforcement

Tax treaties usually also contain provisions on exchange of information (Article 26 OECD Model Convention).
This allows tax authorities to:

• consult each other's data;
• carry out joint audits;
• combat tax evasion and money laundering.

The automatic exchange takes place via:

• Common Reporting Standard (CRS);
• EU DAC directives (DAC2 to DAC7);
• Joint audits for cross-border companies.

Role of the Tax and Customs Administration Foreign Office

The Tax and Customs Administration Foreign Office is responsible for:

• implementation of tax treaties;
• assessment of exemption requests;
• crediting of foreign tax;
• communication with foreign tax authorities;
• supervision of pension and investment income of non-residents.

Taxpayers can submit residence certificates, treaty applications and refund requests here.

Practical examples

Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, private individuals, entrepreneurs and pensioners can easily compare recognized tax advisors who specialize in international tax law and treaty interpretation.
They help with:

• the application of treaty provisions to salary, pension and profit;
• applying for exemptions and settlements;
• preparing international tax returns;
• submitting an objection or mutual consultation procedures (MAP);
• preventing double taxation upon emigration.

Conclusion

International tax treaties form the backbone of the cross-border tax system.
They determine which country may levy taxes, prevent double taxation and guarantee a fair distribution of tax rights.
Due to differences in treaties per country and the complexity of application, expert advice is necessary when emigrating, working internationally or receiving a pension.
Correct application not only prevents double taxation, but also unnecessary administrative and financial risks.

Obligation to file a tax return upon emigration

When someone moves (partially) abroad, their tax status changes.
The Tax and Customs Administration must then assess for which part of the year someone was domestically tax liable and from which moment they are considered foreign tax liable.
This transition is formally recorded via a tax return for the year of emigration — the so-called M-form.

The obligation to file a tax return upon emigration is legally mandatory and forms the final piece of Dutch tax liability as a resident.

Legal framework

The obligation to file a tax return upon emigration is regulated in the following provisions:

• Article 8 General Law on State Taxes (AWR) – obliges to file a tax return when the Tax and Customs Administration requests it or when tax may be due;
• Article 2.1 and 2.3 Income Tax Act 2001 (Wet IB 2001) – determine when someone is domestically or foreign tax liable;
• Article 7.2 Wet IB 2001 – describes the taxable income in case of partial domestic tax liability;
• Taxation Arrangement Netherlands – country of residence (treaty) – divides the taxation rights between the Netherlands and the new country of residence;
• Decision on the prevention of double taxation 2001 – prevents double taxation in the transitional year.

The Tax and Customs Administration uses these legal frameworks to determine how income is taxed in the year of departure.

What is the M form?

The M form is the special income tax return for people who are moving to or from the Netherlands.
It combines the two tax statuses within one year:

1. Domestic period – from 1 January to the day of emigration;
2. Foreign period – from the day of departure to 31 December.

The M form divides the income, deductions and tax credits between the two periods.
This allows the Tax and Customs Administration to determine exactly which part of the year the Netherlands still has the right to tax.

Example:
Someone leaves for Spain on 1 July 2025.
For the first six months, he is considered a domestic taxpayer (worldwide income), then as a foreign taxpayer (only Dutch income).

Who needs to fill in the M form?

Anyone who emigrated or immigrated to the Netherlands in the tax year must file an M form.
This applies to:

• natural persons who move their place of residence to or from the Netherlands;
• self-employed persons who move their business in whole or in part;
• employees who go to work abroad for a longer period of time and deregister with the municipality;
• pensioners who settle abroad.

The obligation also applies if only part of the income was earned in the Netherlands.

When should the tax return be filed?

The deadline for the M-form is the same as that of the regular income tax return:

• No later than May 1 of the following calendar year, unless an extension is requested.
• An extension can be obtained from the Tax Office Abroad, often until September 1 or, if represented by an advisor, even until May 1 of the following year.

Important: the M-form is not available via the standard online tax return; it must be submitted digitally via a tax consultant or on paper (requested via the Tax Office).

Content of the M-form

The M-form contains separate sections for the domestic and foreign period.
The main components are:

Deductible items and tax credits

During the domestic period, full rights apply to:

• mortgage interest relief;
• gift deduction;
• healthcare costs;
• general tax credit;
• employment credit.

After emigration, these rights lapse in principle, unless someone qualifies as a qualifying non-resident taxpayer (art. 7.8 Wet IB 2001).
In that case, deductible items are partially retained.

Practical example:
An employee moves to Germany in June and continues to work part of the year in the Netherlands.
In the M form, he can deduct mortgage interest for the first half of the year and then, if he qualifies, retain a partial deduction.

Entrepreneurs and Emigration

When a self-employed person or entrepreneur emigrates, the M form has additional significance:
the Tax and Customs Administration assesses whether there is a discontinuation of the business in the Netherlands or a continuation from abroad.

• Is the business being moved entirely abroad?
  → The Netherlands imposes a conservative assessment on hidden reserves and goodwill (art. 25 Wet IB 2001).
• Does part of the activities or a permanent establishment remain in the Netherlands?
  → Only the Dutch profit remains taxable (foreign tax liability).

The tax advisor must determine the profit up to the date of departure exactly.

Own Home and Box 3

When emigrating, the tax treatment of the own home also changes:

• Until the date of emigration: own home scheme (Box 1);
• After emigration: home becomes assets in Box 3 (to the extent ownership is retained);
• Mortgage interest relief expires, unless qualifying foreign taxpayer.

In addition, the assets (savings, investments, second homes) must be declared up to the date of departure.

Conservation assessments

In certain situations, the Tax and Customs Administration imposes a conservation assessment upon emigration.
This is done to prevent accrued rights or value growth from disappearing tax-free abroad.

Applications:

• Pension and annuity rights;
• Shares with a substantial interest (≥5%);
• Business assets.

The assessment is not directly collected as long as conditions are met (e.g. maintaining pension rights or postponing the sale of shares).

Application of tax treaties

The tax treaty between the Netherlands and the new country of residence determines which country may levy taxes on:

• salary and pension;
• business profit;
• real estate;
• dividends, interest and capital gains.

The M-form takes this into account:
the part of the income over which the Netherlands no longer has the right to levy taxes is exempt on the basis of the treaty or the Besluit voorkoming dubbele belasting 2001 (Decree for the prevention of double taxation 2001).

Practical procedure

1. Deregistration with the municipality
   → The municipality automatically forwards this to the Tax and Customs Administration.
2. Receipt of invitation to file a tax return
   → The Tax and Customs Administration sends a letter stating the obligation to file an M-form.
3. Request or download M-form
   → Paper or digital via a tax intermediary.
4. Fill in domestic and foreign period
   → Accurately split income and deductible items.
5. Submit before May 1st (or after postponement)
   → Keep copies and supporting documents.
6. Possible protective assessment
   → Receipt of separate decision from the Tax Authorities.

Control and sanctions

Failure to submit or incorrect submission of an M-form can lead to:

• additional tax assessments (art. 67 AWR);
• penalties for late filing (art. 67a AWR);
• fines for deliberately incorrect information (art. 67d AWR).

The Tax Authorities receive information about foreign addresses via the Personal Records Database (BRP) and also check international bank details via the Common Reporting Standard (CRS).

Practical examples

Role of jeofferte.nl

Via the independent quotation platform jeofferte.nl, emigrants, self-employed individuals and pensioners can easily compare recognized tax advisors who specialize in international tax returns and emigration taxation.
These advisors help with:

• completing the M-form;
• splitting domestic and foreign income;
• calculating deductions and tax credits;
• applying for treaty exemptions;
• handling preservation assessments or objection procedures.

Conclusion

The obligation to file a tax return upon emigration is an essential part of the fiscal closure of the stay in the Netherlands.
The M-form ensures that the year of departure is correctly divided between domestic and foreign tax liability.
A careful completion prevents double taxation, errors in deductions and problems with the Tax and Customs Administration.
Professional guidance is strongly recommended, especially in the case of entrepreneurship, pensions or assets in multiple countries.

Professional tax advice for emigration and foreign tax liability

In the event of emigration or an international work situation, tax obligations change dramatically.
Someone who was taxable in the Netherlands often becomes a foreign taxpayer after departure and has to deal with new rules, declarations, treaties and administrative procedures.

An incorrect assessment of tax status or failure to apply treaty rights can lead to double taxation, loss of deductions or even fines for incorrect declaration.
Therefore, professional tax advice is not a luxury, but a necessary guarantee for legal and financial certainty.

Legal framework

The obligations surrounding international taxation are spread across various laws, decrees and treaties, including:

• Income Tax Act 2001 – basis for domestic and foreign tax liability;
• General Tax Act (AWR) – contains the obligation to file a return, obligation to provide information and sanctions;
• Wage Tax Act 1964 – relevant for cross-border workers, pensions and benefits;
• Corporate Income Tax Act 1969 – decisive for companies with foreign activities;
• Tax treaties – divide the right to levy taxes between the Netherlands and other countries;
• EU Regulation 883/2004 – regulates the social security position when working and living in different EU countries;
• Decree for the avoidance of double taxation 2001 (BVDB 2001) – national safety net for situations without a treaty.

The concurrence of these rules makes the application in practice particularly complex, especially with combined income sources (salary, pension, business, assets).

Why professional tax advice is indispensable

1. Assessment of fiscal residence

The question “where do you live for tax purposes?” is crucial.
The Tax Authorities assess this on the basis of the center of vital interests (Article 4 AWR).
An advisor helps to determine this correctly and prevents two countries from considering you as a resident (double residence).

2. Application of tax treaties

Each country has its own treaty rules.
An advisor determines which country may levy taxes on salary, pension or profit, and how double taxation is avoided (exemption or credit).
Incorrect application can cost thousands of euros.

3. Tax return in year of emigration (M-form)

The M-form is complex and contains both domestic and foreign tax periods.
Professional advice prevents errors in the allocation of deductions, tax credits, and Box 3 assets.

4. Entrepreneurs and permanent establishment

For the self-employed and companies, it must be determined whether there is a permanent establishment in the Netherlands or abroad.
This determines which country may levy tax on the profit.
Advisors ensure that the profit distribution is legally correct and complies with the treaty criteria (Articles 5 and 7 OECD Model Convention).

5. Pensions and social security

Upon emigration, pension rights, AOW accrual and insurance obligation often remain (partially) in the Netherlands.
An advisor assesses:

• where you remain liable for contributions;
• whether voluntary continuation via SVB or pension fund is useful;
• how the tax treaty regulates pension taxation.

6. Assets and Box 3

Assets such as Dutch homes, savings accounts or shares often remain taxable in the Netherlands.
An expert ensures that only the correct part of the assets is declared and prevents overlap with foreign taxation.

7. Conservation assessments

Upon emigration, the Tax Authorities may impose conservative assessments on accrued pension or substantial interest shares.
An advisor ensures correct deferral of payment and monitors the conditions under which the assessment lapses.

Main Areas of Advice

Tax and Customs Administration Foreign and consultation procedures

In international matters, the Tax and Customs Administration Foreign can:

• issue treaty declarations (certificate of residence, exemption);
• conduct mutual consultations with foreign tax authorities (Mutual Agreement Procedure – MAP);
• exchange information via the Common Reporting Standard (CRS) and DAC directives.

A tax advisor knows how these procedures work and ensures that applications are submitted legally correctly, including supporting documents and treaty articles.

Tax risks without expert guidance

Doing an emigration declaration or treaty application yourself without knowledge of international tax law can lead to:

• double taxation due to incorrect treaty interpretation;
• loss of entitlement to deductions or tax credits;
• unjustified protective assessment or loss of deferral of payment;
• unintended tax residence in two countries;
• criminal risks in case of incomplete asset disclosure.

Practical example:
An entrepreneur moves to Spain without reporting any hidden reserves in his company.
Several years later, the Tax Authorities impose a protective assessment with a penalty for incomplete emigration declaration.
Correct tax advice could have prevented this levy.

Choice of a recognized advisor

A reliable tax advisor or office preferably has:

• RB or NOB registration (Register Belastingadviseurs or Nederlandse Orde van Belastingadviseurs);
• Experience with international tax returns and tax treaties;
• Knowledge of social security treaties and EU regulations;
• Access to treaty databases (OECD commentaries, treaty models);

Preferably, the advisor is familiar with both the Dutch and the foreign tax system of the country of residence.

Costs and benefits

Although professional tax advice involves costs, it almost always provides a financial benefit in practice.
A good advisor can:

• prevent you from paying too much tax in two countries;
• correctly apply exemptions and credits;
• avoid fines;
• achieve fiscal optimization within the legal frameworks.

When emigrating or with international income, expert advice usually pays for itself quickly.

Role of jeofferte.nl

Through the independent quotation platform jeofferte.nl, individuals, entrepreneurs and pensioners can easily compare recognized international tax advisors.
The affiliated specialists are carefully selected for their expertise in:

• emigration tax returns (M-forms);
• international tax treaties;
• pension and wealth taxation;
• fiscal residence determination;
• cross-border business structures.

Users can request quotes without obligation, compare them on expertise and rate, and directly contact an advisor who suits their situation.

Conclusion

In the event of emigration or foreign income, professional tax advice is essential to comply with the complex Dutch and international legislation.
Expert guidance ensures a correct declaration, prevents double taxation and provides certainty about rights, exemptions and obligations.
Anyone who engages a recognized specialist in good time avoids financial and legal problems and often saves considerably on the total tax burden.