Hi
I am a resident in the Netherlands but live and work in Germany from Monday to Friday. Meaning that I commute on Sunday from the Netherlands to Germany and back from Germany to the Netherlands on Friday.
I work for a German company and have a German employment contract and get my salary on a German bank account. However, I own a house in the Netherlands together with my register partner (we are not married). It means that my partner lives in the Netherlands on permanent bases.
I started working for the German company in July 2018. Previously I was employed by a Dutch company.
I wonder where I should declare my income. Should I declare it in Germany or should I declare it in the Netherlands or both? The German accountant tells me that I was to make a declaration to the German tax authority but reading online it looks that I have to make an income declaration in the Netherlands as well since I am also a resident in the Netherlands.
Would appreciate if you could shade some light in the matter.
Best regards
Sebastien
Income tax living in the Netherlands but working abroad
Hi Sebastien and welcome to the Forum.
Generally, where you pay tax is decided by where you are classed as a resident. However, there are special arrangements in place that were agreed between the Dutch and German governments. So, if you work in Germany for more than 183 days in any one tax year, then you will pay your taxes in Germany.
There are some things you need to take into consideration. When you pay tax in Germany, you are also covered by the social insurance there. You will not pay any national insurance contributions in the Netherlands, and allowances such as mortgage interest payments and personal deductions do not apply to you. It follows that any Dutch refunds of income tax and national insurance contributions will not be relevant to you.
Hope this helps.
Cynic
Expat Team
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