Emigration Tax Planning
Based on figures of the Netherlands statistical institution CBS around 180,000 people emigrate from the Netherlands each year and the number is increasing. Emigration from the Netherlands can from a tax point of view be quite complicated, especially for expatriates. This becomes even more complex, when having bought their own house in the Netherlands and use the Dutch mortgage interest deduction.
Migrating away from the Netherlands can be permanent or just temporarily (sabbatical, secondment, temporary work abroad, working abroad).
Typical questions may arise such as:
- can I live in two countries or perhaps in no country at all from a tax point of view?
- do I stay a Dutch tax resident or do I become a non-Dutch tax resident?
- can we obtain tax benefits by migrating before a certain date?
- what country is allowed to tax (does a double tax treaty apply and what are the consequences)?
- what tax compliance actions do I need to take when leaving the Netherlands (what about my tax filing obligations)?
- what will the tax status be of my privately owned Dutch house and what to do with the mortgage loan, is it possible to deduct the mortgage interest deduction after the emigration?
- who will be taking care of my Dutch tax filing obligations and my correspondence address after the migration?
- can I grant a gift to somebody shortly after leaving the Netherlands without the levy of Dutch gift tax?