Becoming a non-domiciled taxpayer in the Netherlands and sheltering your wealth from Dutch tax

Nov 16, 2021

Are you looking for a tax friendly migration opportunity to the Netherlands?

The Netherlands offers a wholesome package with an outstanding healthcare system and a steady top ten World Happiness Index ranking. The Netherlands is by far the best friend of the UK and the US on the European continent with a very good physical (Schiphol, Rotterdam / The Hague and Eindhoven airports), IT, legal and tax infrastructure. What’s more, the tax system offers many benefits for individuals and companies combined with a very extensive tax treaty network. We at Migrantic, Lawyers for Tax & Global Mobility offer a tailormade approach to your tax structure, which can be up and running in a week if necessary. Additionally, you will not risk overbilling due to our case-specific expertise and 30 years’ experience. Let us tell you how this works. Many foreign people (expats, businesspeople and wealthy individuals) in the UK, are currently taxed under the favourable UK “non-domiciled” tax regime, are looking to leave the UK as soon as possible, before March 29, 2019. Taxes United Kingdom vs. The Netherlands Under the ”non-dom” regime, the person who is not domiciled in the UK (i.e. does not have the UK as his or her “home country”) is generally only taxed on income derived in the UK or remitted to the UK. The UK is therefore a fiscal paradise for foreign (wealthy) individuals and captains of industry who do not have their domicile (roots) in the UK. Did you know that also the Netherlands can be a fiscal paradise for foreign wealthy individuals as well? Moreover, nationality or domicile is totally irrelevant in this Netherlands tax regime. A similar (or even better) situation compared to the UK remittance base regime can usually be set up in the Netherlands for wealthy individuals (including UK nationals) emigrating to the Netherlands who generally speaking have not been a resident of (or close to) the Netherlands for more than 5 years in the last 25 years. Qualifying people do not have to even report their non-Netherlands source assets at all.  Immigration With the right planning, our immigration law partners can also arrange Netherlands work authorisation and therewith a Dutch residency permit for the entire family for non-EU and non-EEA nationals moving their residency to the Netherlands. Migrantic can ensure your stay as a non-EU national in the Netherlands for at least 5 years. Expat Tax Structure The benefits of the Dutch facility – which has a maximum duration of 5 years – are substantial, for instance: 1.  The migrating individual does not need report any income at all to the Dutch Tax Authority (except for Dutch source income, such as income from a Dutch company or from Dutch real estate); 2.  The individual specifically does not need to report income from investments abroad or from a foreign substantial interest (dividends and capital gains from closely held companies, >5% owned). The Dutch facility takes some Dutch tax planning and setting up a Dutch company but it can certainly be done. This structure does not only work for ‘Brexit fugitives’ but for all persons around the world with substantial portfolio investments who are considering to move to the Netherlands and are willing to do some (consultancy) work for their own company. Once the structure is in place, you do not have to report your private wealth at all and thus all portfolio investment income and capital gains are tax free for a duration of 5 years even if you remit the proceeds to the Netherlands. This also applies to dividends and capital gains from closely held companies who have no activities in the Netherlands and are not managed here. If this is something you would be interested in, then please contact us. If you have any other questions regarding your move or immigration to The Netherlands, don’t hesitate to call, we are happy to help.