If you live outside the Netherlands but earn income from Dutch sources, you may be considered a foreign taxpayer by the Dutch Tax Authorities.
Who qualifies as a foreign taxpayer?
You're classified as a foreign taxpayer if you reside outside the Netherlands and have income from Dutch sources. This includes earnings from employment, business activities, or property located in the Netherlands. Only income that the Netherlands has the right to tax is relevant.
Tax Implications
As a foreign taxpayer, you're generally taxed only on your Dutch-sourced income. However, you typically cannot claim the same deductions and tax credits as residents. An exception exists if you're a qualifying foreign taxpayer, which requires meeting specific conditions, such as paying tax in the Netherlands on at least 90% of your worldwide income.
Filing Your Tax Return
Foreign taxpayers must file an income tax return in the Netherlands if they receive a tax return letter or form from the Dutch Tax Authorities. You can file online using your DigiD or a European-recognized login method, or request a paper form if you cannot file online.
Example Scenario
Consider Emma, who lives in Belgium and works for a Dutch company. She earns €60,000 annually from her Dutch employer and has no other income. Since all her income is taxed in the Netherlands, she may qualify as a qualifying foreign taxpayer, allowing her to claim certain deductions and tax credits.
Need Assistance?
Navigating tax obligations as a foreign taxpayer can be complex. If you need personalized advice or assistance with your tax return, consider consulting one of our tax professionals for guidance.
