31 December 2023 Add expertise tag Add service tag Add country tag
Payroll & HR services Global Mobility Services International labor and cross border assignments Payroll & HR Tax compliance

The rules for tax residence in the Netherlands

According to Dutch tax principles, an individual is considered to be a resident of the country where he/she has the center of his/her life interest. This concept has been developed in case law. Important factors are the place where the individual actually stays and works most of the time, where the individual has a house, where his/her family resides and where his/her center of vital interests lies. Nationality is a factor, but in essence not decisive. 

The law provides for special rules with regard to the determination of tax residence of certain categories of taxpayers: 

  • foreign employees who are assigned to the Netherlands and qualify for the so-called 30%-ruling, can opt for the 'partial non-resident status';
  • crew living aboard vessels or airplanes with their home port in the Netherlands i.e. falling under Dutch jurisdiction are considered to be Dutch residents;
  • Dutch nationals who are employed by the Dutch Kingdom and working in a foreign consulate, embassy or who are assigned abroad on the basis of an international treaty are considered to be residents of the Netherlands. Their spouses and dependent children under 27 years old are considered to be residents of the Netherlands as well;
  • a resident taxpayer of the Netherlands who emigrated from the Netherlands but returns within a one year period without having been a resident of a tax treaty country, member state of the EU, Bonaire, St. Eustatius or Saba, is considered to have maintained the Dutch tax residence status;
  • non-resident taxpayers that pay wage/income taxes in the Netherlands on 90% or more of their worldwide income while being a resident of a member state of the EU/EEA, Switzerland, Bonaire, St. Eustatius or Saba, are considered qualifying non-resident taxpayers of the Netherlands. 

Every individual situation is different and should be judged independently on the basis of the criteria formulated by the Dutch tax courts, Dutch tax policies and applicable tax treaties.