Taxation of non-resident taxpayers in the Netherlands

In the Netherlands, the rules for non-resident taxpayers are for the major part the same as the rules for resident taxpayers.

The main difference is the scope of the tax liability: resident taxpayers are in essence subject to tax for their world-wide income, whereas non-resident taxpayers are only subject to tax for certain specific categories of income from Dutch source.

The tax rates are the same, but there some difference with respect to the entitlement to deductions, allowances and tax credits.

In essence every individual who does not qualify as a resident taxpayer, is a potential non-resident taxpayer, provided that this individual enjoys Dutch taxable income.

Under certain conditions resident taxpayers can opt for a partial non-resident taxpayer status. Also, non-residents that meet certain conditions are considered qualifying non-residents. The benefit is that qualifying non-residents should be eligible for the same deductions and allowances as resident taxpayers.