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One-year return to the Netherlands as Dutch "expat"

Last activity 22 April 2021 by Ramses K.

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ronvdc

My situation:
- Born and raised in the Netherlands, but living in the U.S. (for over twenty years now).
- Dual Dutch and U.S. citizen.
- Wife is U.S. citizen, but she lived in the Netherlands from 1998-2000, and she had a residence permit (and 'sofi-nummer') at the time (living with her partner, i.e. me).
- 10-year-old twin daughters, who are both U.S. and Dutch citizens.
- Working for large international IT company, with offices around the globe, including the Netherlands.
- No longer registered as a resident in the Personal Records Database (BRP) in any municipality in the Netherlands (not since December 2000, when we left for the U.S.).
- Currently not tax-liable in the Netherlands (not since we left for the U.S. more than twenty years ago).
- No major property in the Netherlands, but homeowner in Seattle, WA, with a lot of equity in our house (several $100K's).

We're considering living in the Netherlands for at least one year to give our girls "the real Dutch experience." Plus it would significantly improve their Dutch. This would most likely be from the summer of 2022 to the summer of 2023, so the girls would go to school in the Netherlands during the 2022-2023 school year. We might even stay longer (indefinitely?) if we really, really like it.
So for me it would be an expat experience in some ways (particularly given that I've been gone from the Netherlands for more than two decades), but not in other ways (no language issues at all).

This is what we're thinking (along with some questions):
- We'd very likely rent a house in the Nijmegen/Arnhem area. Ideally, the girls would go to the Rivers International School in Arnhem. We have yet to reach out to that school, but does anyone know if international schools also cater to situations like ours? Is it hard to get into a school like that?
- Both I and our girls are Dutch citizens, so there are no visa concerns for us. However, my wife is not a Dutch citizen. QUESTIONS: what would be required for her to stay in the Netherlands for, say, one year or so? Would it make a difference that she already lived in the Netherlands before and had a residence permit (and 'sofi-nummer') at that time? It's been 20+ years ago, though. Also, how long could my wife stay in the Netherlands without requiring a residence permit of some sort? Is it 90 days? Or do other rules apply, since she'll be staying with her husband and kids, who are all Dutch citizens (but currently not Dutch residents)?
- Is there a point at which you're required to register as a resident in the Personal Records Database (BRP) of the municipality where you live? Or can you stay in the Netherlands for an extended period of time without ever registering?
- The plan is for me to continue to work for my current employer doing the same job as now, but just in a different time zone (NL vs. Pacific Time). My company would not officially reassign me to the Netherlands, but rather just allow me to work remote from a different location. I would prefer to remain officially employed for the U.S. company, with my U.S. salary, etc. QUESTIONS: would it be possible to do that if we lived (and worked) in the Netherlands for, say, a year? Or would I officially need to transfer to the Dutch office at some point in time? How long could I be in the Netherlands working for the U.S. company? What are the conditions for me to have to (or not have to) pay Dutch taxes and social security contributions? Does it make any difference that I'm both a U.S. and Dutch citizen?
- What are the tax and financial ramifications for a long-term stay in the Netherlands, particularly given that I am both a U.S. and Dutch citizen now?
- What would happen tax-wise if we sold our house in Seattle, and brought several $100K's with us to the Netherlands? Would we be taxed on that when we move to the Netherlands? Or is money you gain from selling your primary home exempt from taxation?
- Does anyone know a great financial and/or tax adviser that we could consult to help us figure out all the financial and tax implications of a scenario like this? So that person would need to be an expert on both Dutch and U.S. tax rules.

We're still very much in the exploratory phase of this adventure and I'm sure I'll have lots more questions, but any pointers or thoughts in this early stage would be much appreciated!

Thanks!
--Ron

Cynic

Hi and welcome to the Forum.

I'm going to stick my neck out and say you can all travel together; you have 90 days to sort out your wife's residency (that's the length of time a US citizen can stay in the Netherlands with no visa).  You've lived there before, your kids all have passports, your wife's old SOFI number is now her BSN number.  What you may not have is the DigiD, but you'll get that once you register at the Gemeente.

What will prove problematic is medical insurance cover.  I'm not going to repeat previous conversations as some of the information is conflicting and there's no clear resolution at the end.  It will be far simpler if your respective bosses put you on a Dutch work contract for the duration, 2nd best is to come with an existing US medical cover that will cover you all for your visit.

Tax - where you are taxed is decided by where you are resident.  So if you live in the Netherlands, the Belastingdienst will assess you on your worldwide income.  There is a double taxation treaty in place between the US and NL, I'd advise you to read it carefully.  I haven't, but I've read others and they generally tell you that the treaty covers income taxes and pensions and any other special thing the 2 nations think relevant.  As US citizens, you will still need to make Federal and State tax returns (and pay relevant taxes) while living in the Netherlands.  The killer is the social taxes; if you live there, you will pay these regardless.  I'm not going to go into great detail here, except to say you must speak to a tax consultant with experience of operating both sides of the pond.

Tax advisors - check the Services link at the top of this page.  Also, speak to your CFO, he will have contacts for this kind of thing, especially if you work for a multi.

Schools - first thing you should know is that Dutch law does not allow homeschooling.
We considered both international and the public schools when we moved there, but just couldn't afford the international school, so all our kids went to the local school and I cannot speak of them highly enough, all 3 went to a Dutch school, then we moved to the UK and they transitioned into UK education, now all grown up, went through Uni/College and have not suffered at all.  Of course, if your kids are coming from the US system to which you intend to return in 12 months, then it makes perfect sense to do what you are planning.

I guess that's about it; if you have any further specific questions, please come back to us.

Hope this helps.

Cynic
Expat Team

Ramses K.

Why put your kids in an international school if you want the to learn proper Dutch? They don't speak or teach Dutch in those schools. If you want them to enroll in the real Dutch society consider to put them on a public school in the neighbourhood you want to live in.
Friends are easily made for young children and it is nice if those friends live close to you.

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