Filing your American taxes while being a Dutch tax resident. You might wonder why. You might wonder when. Maybe even wonder how. That last one we can answer easily. Filing your American taxes while being a Dutch tax resident You are a Dutch tax resident when your central point of life is in the Netherlands. We connect to that the obligation to register with city hall. The moment you are registered with city hall, the Dutch tax office is aware of you being a Dutch tax resident. Most people prefer not to choose to  be a Dutch tax resident. We can understand that. Hence the tax treaties do n ..read more

Filing your American taxes while being a Dutch nonresident tax payer. What is that about? Voluntary paying Dutch tax? That is indeed not the case. Filing your American taxes while being a Dutch nonresident tax payer You are a Dutch tax resident when your central point of life is in the Netherlands. The moment you move your central point of life abroad, you migrate. Then you file for that year the Dutch migration income tax return. The following year you could be a non-resident tax payer. When are you regarded a non-resident tax payer? There are a number of situations. The most common one is th ..read more

Filing your American taxes while being a Dutch tax resident. Under certain circumstances you can deduct the days worked abroad. That is about to come to an end. Filing your American taxes while being a Dutch tax resident – days worked abroad deduction This is a little technical, but exciting, so please stay with us. I will try to make it simple. The days worked abroad only applies to those who have the so called 30% ruling in combination with the US nationality or greencard. If you do not have this combination, it is not for you. The US taxes its nationals based on nationality. The Dutch tax r ..read more

The 2024 tax assessment. Maybe you already received it, and the year hardly began! Can I not simply ignore it? No you cannot. Here is why. 2024 tax assessment The 2024 tax assessment if a request from the tax office to pay now already the expected tax for the year 2024. It is a request, but if you fail to comply, you are reminded. The first reminder is not that bad, but the follow up reminders included penalties for being late. In other words, ignoring the request, which is actually a demand, is expensive. What is the 2024 tax assessment about? Multiple flavors we have, all based on the past ..read more

Filing your American taxes while being a Dutch resident tax payer. The 401K and IRA reporting, how is that done? Filing your American taxes while being a Dutch tax resident – 401K and IRA reporting You are a Dutch tax resident when your central point of life is in the Netherlands. The moment you move your central point to the Netherlands, you migrate. Then you file for that year the Dutch migration income tax return. The following years you file a resident tax return. In the resident tax return you report your world wide assets. Reporting your world wide assets is done in Box 3 We maintain a b ..read more

Filing your American taxes while being a Dutch tax resident. DAFT is maybe what you think about tax. Daft for us is the Dutch American Friendship Treaty. A very pleasant treaty to have. What is the Dutch American Friendship Treaty (DAFT)? This is a very old friendship treaty for a better working relation between the two nations. We know the Daft especially for entrepreneurs that would like to become a resident in the Netherlands. IND (immigration service) and DAFT The IND offers US nationals to become a resident in the Netherlands, when they are self employed. The self employment is often done ..read more

Combine house next door with your own. Probably you think the neighbor might not like that. What if you are also the neighbor, can you make the connection? Combine house next door with your own There are apartment buildings with one door, big stair case, and several floors with housing. You are on the third floor. The fourth floor you were able to purchase. Maybe the apartment only has two floors and you were able to purchase them all. Or you have one roof with two houses under it, you bought the neighbors. An apartment building next door was purchased by you. In all of the above situations th ..read more

You are not an entrepreneur, states the tax office to you. That is not a nice thing to state, especially if that causes you to lose a loss deduction. You are not an entrepreneur “ You are not an entrepreneur” states the Dutch tax office. Happy days, no need any more to file the entrepreneurs tax return. Collect the proceeds tax free. No more accounting fees. What if you actually did not collect and proceeds, only paid costs. Maybe not so happy days at all. Court case – you are not an entrepreneur A lady created art. Beauty is in the hand of the beholder, apparently only in her hand. Nobody pur ..read more

House in the Netherlands in Box 3 and not Box 1 if you live abroad. That is a no brainer. Still a non resident tax payer gave it a try to get the house in Box 1. Here is the story. Boxing system in the Netherlands We have a boxing system in the Netherlands. Box 1, 2 and 3 to simply the Dutch tax system, which is far from simple. In Box 1 you report your employment income, freelance income, alimony income. And we have a limited number of deductions. A mortgage deduction and a charity donation deduction. The medical deduction nearly nobody qualifies for. In Box 2 you report income you receive on ..read more

Sometimes a client suggest a divorce as Dutch tax advice to solve one tax matter. We instantly inquire how the partner thinks about that suggestion. Divorce as Dutch tax advice The moment life becomes simple, the solutions also become simple. A couple gets the tax return and the fiscal partnership results in the taxation. Sometimes the client inquires if a divorce would solve that situation. We find that dangerous territories. Divorce implies both partners to agree A divorce implies that the marriage is going to end. That assets are allocated based on agreement or rights to each partner. One p ..read more