I live in the Netherlands – where do I pay tax on income from abroad?

It depends on agreements with the country from which you have income. You do not pay double tax on the same income.

Check the agreements in the tax treaty

In the overview of treaty countries, you can see what agreements exist with the country from which you have income.

Verdragsstaten ingezetenen (Treaty countries residents, only available in Dutch)

If the country from which you have income is not listed in the overview, then the Netherlands does not have a tax treaty with that country. But even then, you will not pay double tax on the same income.

Filing a tax return if you have income from abroad

Read more about your tax return:

• You have to state your worldwide income

  You have to state your Dutch income and your income from abroad. Together, this is your worldwide income. However, this does not mean that you will always have to pay income tax in the Netherlands on your income from abroad. You may be entitled to a double tax relief.

• You may be entitled to a double tax relief

  You may be entitled to a double tax relief if, under a tax treaty, you are required to pay tax in the country from which you receive your income. This relief means that you do not pay tax in the Netherlands on your income from abroad. You can see the amount of the relief when you file your tax return online.

  You are also entitled to a double tax relief if there is no tax treaty and you do not have to pay tax in the Netherlands on your income from abroad.

  No relief if you have to pay tax in the Netherlands

  You are not entitled to double tax relief if, under the tax treaty, you have to pay tax in the Netherlands on your income from abroad. If you have also paid tax on this income in the country from which you have it, ask that country how you can reclaim the tax you have paid there.

  Transfer relief: deduction carries over to the following year

  You do not need to apply for the transfer relief yourself. We will automatically apply the transfer relief if the double tax relief exceeds the income tax. This is the case if you claim a deduction in your tax return and this does not result in any tax benefit.

  After your final assessment, you will receive a decision from us stating the amount of your income from abroad, that will be taken into account when calculating the double tax relief in a following year. You may receive more than one decision, for example, one for box 1 and one for box 3.

  Have you not received a decision, or have you lost it? Then you can request the amount available for the transfer relief in writing. Send your letter to:

  Belastingdienst/kantoor Eindhoven
  Postbus 90056
  5600 PJ Eindhoven

  Calculation example: double tax relief and the transfer relief in box 1

  Your income consists of €27,226 income from earnings in Germany €4,536 in negative income from being a homeowner. Your taxable income from work and home (box 1) then amounts to €27,226 - €4,536 = €22,690. You then have to pay €944 in income tax.

  For your income from earnings in Germany you owe tax in Germany and in the Netherlands to avoid double taxation you are entitled to a rebate. In this case the rebate to avoid double taxation would amount to €27,226/€22,690 x €944 = €1,133. But since you only have to pay €944 on your taxable income, the amount of the rebate will only be €944, as this is the maximum amount of the rebate.

  You do not receive any tax benefit from mortgage interest relief for your owner-occupied home, which is why we automatically apply the transfer relief. We reserve the amount of €4,536 and carry it forward to the following year. If, in the future, you have income in box 1 on which you have to pay income tax in the Netherlands, we will apply a deduction to the reserved amount of €4,536 to prevent double taxation. This deduction will give you a tax benefit.