Who is tax resident in the Netherlands?

There are 2 types of tax residency in the Netherlands:

 

Domestic tax resident and foreign tax resident.

 

You become an internal tax resident at the time of registration with Gemeente. This happens regardless of how long you have lived in the Netherlands.

As a domestic tax resident, you must show all of your worldwide income (incomeearned anywhere in the world), and often you will be exempt from paying taxes on this income.

If you live in another country and are not registered in the Netherlands, you are a foreign tax resident. At the same time, if you have income in the Netherlands, you pay tax on it.

Also from our video you will learn about when the question arises about the center of vital interests? And what is the center of vital interests?

It is very important to understand that the center of vital interests can affect not only the type of your tax residency, but also your residence permit.

For more information on the statuses of domestic and foreign tax residents, see our video.