Am I a Dutch tax resident?

Do you need to file a migration tax form? Bear in mind that even if you are not a Dutch tax resident, you may still have Dutch tax liabilities, as a foreign tax payer. The Dutch Tax Authorities (“DTA”) has internal guidelines on how to decide if - and thus when - you have become a resident of the Netherlands for tax purposes. 

It is all based on the facts and circumstances and following, the tax residency definitions are highly relevant for your income tax position, but also for e.g. gift or inheritance taxes. In other words, it can make the difference between a tax payment or a refund. 

Dual residency

First, what if two countries claim that you have to pay your taxes in that respective state? Your tax residency has direct impact on whether you are fully liable for your local sourced income or your worldwide income. If available and applicable, tax treaties are there to avoid double taxation. As such they allocate the right to levy taxes between countries. This also means that if both states claim your tax residency, the tax treaty may help. And again, most of the time facts and circumstances are leading. If you have doubts on where you live (or where the DTA thinks you reside, please do let us know and we will assist you further by guiding you through the relevant decisions.  

Dutch regulations

In case of doubt – or an audit - the DTA will initially check whether you live in the Netherlands according to Dutch policies. Translated this will mean that it is checked where you have durably settled, i.e. have your centre of your social life and where you have most residential ties. Now, which facts are relevant? For example:

  • Where do you rent or own a place that functions as your primary dwelling? 
  • Where are your closest family members, children and/or friends located; 
  • What location does your employment contract state?
  • Where do you have your subscriptions, such as a newspaper or church visits; 
  • Where have you been registered? 
  • Where do you have you business connections?
  • Where are your assets located? 
  • Where is your bank located? 
  • Where do you pay your electric bills? 
  • What do your flight tickets indicate? 
  • Where do you spend your money? 
  • What is you nationality? 
  • Et cet..

It is good to bear in mind that this list is not limited nor ranked. Eventually all facts are relevant and will be taken into account by your tax inspector. 

Challenged registration

The above also implies that where you are registered (at the municipality c.q. in the “BRP, “Basisregistratie Personen”) is never decisive. Also having a Dutch tax ID number (“BSN” “Burgerservicenumber”) is just an indicator. For the DTA it will be a start for an assumption, but it can never stand alone for a formal decision. Therefore you have always the opportunity to challenge such a decision. Now, if at any time the tax inspector or a foreign tax inspector doubts your residency indeed (or challenge a form that you have filed), you are obliged to provide them with the requested proof (such as your electric bills). 

It goes without saying that we often advise on tax residency issues. We will guide you through the process of providing the information to the DTA if necessary. 

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