I work for the USA but lived in the Netherlands. where do I pay taxes?

Hi again.

I'm not a tax expert. I can tell you that where you are assessed for taxes is entirely dependent on where you are deemed as being resident for more than 183 days in the relevant tax year (so, in NL,1 Jan > 31 Dec); Every year you will get a blue envelope from the Belastingdienst asking you to declare your worldwide income, you will then either get a paying in slip for you to go to the bank and pay your taxes or if you are due a refund, it will go straight into your bank account.

There is a tax treaty in place between the US and NL; you can read it on the IRS website (link); I haven't read it, nor am I going to.

There is a slight difference in that a couple of countries in the world require their citizens to make a tax declaration even if they no longer live in their home country - yes, the USA is one of them. There is a clause (a memorandum of understanding) about double taxation, so if you pay tax in one country, you won't pay it again in the other. Where you come unstuck in the Netherlands is that the tax treaty is about income tax, the Dutch also have social taxes that fall outside the tax treaty.

I suspect the Belastingdienst won't know anything about you unless you tell them. However, my advice would be to speak to a Dutch tax adviser and see what they have to say on the matter.

I hope this helps.

Cynic

Expat Team