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Pay income tax over the money I make remotely in US

Last activity 07 October 2024 by Cynic

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jannetteemerson


Hi 

I am a former Dutch citizen. I lost my Dutch citizenship when I became an American citizen two years ago as I did not qualify for one of the exceptions (married to a person in the country you live). I am able to get my citizenship back if I live in the Netherlands for a year, so I’m planning to leave in January. I am an independent contractor in the US working for two companies and I will continue to do this during my year in the Netherlands. I am also keeping my house in the US and renting it out on Airbnb. I know I have to file my US taxes, but how does it work when I live in the Netherlands. Do I pay income tax in Netherlands over the money I make remotely in US? As a contractor into US, I have a lot of business deductions. I also have deductions from the expenses that I incur for my Airbnb. Super confused of how this would work when I live in the Netherlands.

Cheryl

Hello jannetteemerson,


Welcome to Expat.com 1f600.svg


I have created a new thread with your message for more visibility on the Netherlands forum.

This way, you will have a better chance of getting insights and responses from other members.


In the meantime, feel free to read the following article on Taxes in the Netherlands.


All the best,


Cheryl

Expat.com team

Cynic


   
Hi  I am a former Dutch citizen. I lost my Dutch citizenship when I became an American citizen two years ago as I did not qualify for one of the exceptions (married to a person in the country you live). I am able to get my citizenship back if I live in the Netherlands for a year, so I’m planning to leave in January. I am an independent contractor in the US working for two companies and I will continue to do this during my year in the Netherlands. I am also keeping my house in the US and renting it out on Airbnb. I know I have to file my US taxes, but how does it work when I live in the Netherlands. Do I pay income tax in Netherlands over the money I make remotely in US? As a contractor into US, I have a lot of business deductions. I also have deductions from the expenses that I incur for my Airbnb. Super confused of how this would work when I live in the Netherlands.
   

    -@jannetteemerson

Hi and welcome to the Forum.


I'm not a tax advisor.  One of the things I've learnt is that where you are assessed for taxes is dependent on where you are deemed as being resident for more than 183 days in the tax year; if you are moving back to live in Holland, that will be from the day you arrive.  There is a tax agreement between the US and NL; I'm not sure if the Belastingdienst have a Dutch version on their website, but the IRS do have an English language version; this link will take you straight to it.


One of the joys of being a US citizen is that you do have to file tax returns annually to the IRS and some States have a similar requirement (generally those where you pay state taxes); my advice is to speak to a tax advisor in the Netherlands who is experienced in dealing with US/NL taxes.


You need to watch out in the Netherlands for medical insurance and social taxes; these all fall outside any tax treaty/agreements, and you will pay for this from the day you arrive.  Again, speak to a Dutch tax advisor.


I hope this helps.


Cynic

Expat Team

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