You are currently living abroad and you would like to move your residence to the Netherlands. What does immigration into the Netherlands imply tax wise?
Immigration into the Netherlands
If you are from outside the EU you need a residence and or work permit. If you are from the USA you can also arrive into the Netherlands as being self employed under the US Dutch friendship treaty.
You do need assistance of an immigration lawyer. The process is not as complex as that of obtaining a residence permit, but you need assistance.
You might have been warned about the Dutch tax rates, but in perspective of for instance the United Kingdom, it is not that bad. The perspective is not only the tax rates, but also the cost of living. The cost of living, living for instance in the centre of Amsterdam compared to living near London is massive. Yes the tax rates go to 52% from EUR 66.421 (2016). But for that we might have the following solution.
The 30% ruling implies your employment income is for 70% taxed at the regular tax rates and the other 30% of your employment income is not taxed. Tax free. There are conditions to be met and you need either to be employed by an employer or start your own BV company and employ yourself.
Deduction housing costs
You will notice that rents are not as high as in or near for instance London. However, when you learn what native Dutch pay, you learn you pay a high rent. That is because of the system we choice, long story. The solution could be that you purchase a property for yourself to live in. If you do, then the Dutch tax office subsidises your mortgage costs by refunded a part of it. In other words, the mortgage costs are a tax deduction in the Netherlands. Not for ever, the system will change in about 10 years. But how long will you stay? The 30% ruling only lasts 8 years, so purchasing a property is still interesting, especially if you look at the low mortgage percentages.
You can try to study Dutch, but none of the Dutch will give you airtime, as the moment we learn you are foreign we switch to English. Also the costs you make to learn Dutch, costs of courses are not tax deductible. If you insist on learning Dutch we recommend to find accommodation in an area where only old Dutch live, most cannot speak English, hence you learn quickly.
Orange Tax Services
We are looking forward to you contacting us, as we can assist you with setting up a BV company, requesting your mortgage refund, filing your Dutch income tax return and assist you with your other tax requests. To assist you with your immigration into the Netherlands.