Fiscaal vertrek naar Spanje
If you settle in Spain for a longer period of time, this can have consequences for the tax and social insurance contributions in the Netherlands. To determine where exactly you are taxable, the “residence principle” is of great importance.
If you live in the Netherlands, you are considered a resident taxpayer and you are taxable on your entire worldwide income. You must state the salary that you earn abroad, the interest earned on foreign bank accounts, income and rental value for your home abroad and any other foreign income you must state on the Dutch income tax return form. You are also liable to tax in the Netherlands on your entire world capital, if you reside in the Netherlands.
In comparison with the resident taxpayer, the non-resident taxpayer is not entitled to:
transfer basic allowance, single parent allowance and additional single parent allowance.
Deduction of extraordinary expenses and donations;
Tax retirement reserve;
Self-employed person’s allowance
Exemption from standing rights / conversion of discontinuation profit or increased annuity deduction;
Assessment on request (T-form), unless one was a non-resident taxpayer with wage income throughout the year;
Non-resident taxpayers are only eligible for the single-earner’s allowance if they have been resident taxpayers for at least 6 months during the calendar year.
Tax and residence
Everyone who resides in the Netherlands must pay tax in the Netherlands on his or her total (world) income. If you do not live in the Netherlands, you only pay tax in the Netherlands if you receive certain income from the Netherlands. It is therefore important for Dutch income tax to know where you live and whether you have emigrated or not. Nationality usually does not play a role in this. It is also important for wealth tax and for the levying of national insurance contributions where someone lives.
Sometimes the question of where someone lives is easy to answer. For example, if you go on holiday to Spain, it is clear that you do not live in that country. If you emigrate with your entire family and the entire household effects to Spain, it is also clear; You emigrate and leave the Netherlands permanently for an indefinite period. However, there are also situations where it is more difficult to judge in which country you exactly live. Suppose you have a house in Spain, where you stay regularly, but also a house in the Netherlands, to which you occasionally return. Is this an emigration or not?
In the above situation, the Dutch tax authorities assess your place of residence according to your personal circumstances.
The following circumstances play a role in assessing this
Have all family members moved?
Do you still have a house in the Netherlands? and we do not mean a registration with a family member or friend
Does the new accommodation have a temporary character (e.g. holiday home)
Have you been deregistered from the population register in the Netherlands?
In which country are you a member of clubs and associations?
In which country is your car registered?
Do you have a Spanish residence permit?
Employment or other activities in the Netherlands
The answer to these questions ultimately indicates in which country the center of your economic, social and personal interests lies. Usually, a combination of circumstances occurs. How doubtful cases are decided is difficult to predict. In the majority of cases, however, the departure to Spain also means the loss of tax residence in the Netherlands. Perhaps quite a relief for many. In the event that you have doubts as to whether you are still considered a resident for the Dutch tax authorities, it is wise to ask the inspector to determine his position in advance and to inform you of this. This is particularly important for Dutch people, who keep a house (pied á terre) in the Netherlands after their departure abroad.
In case of doubt about your place of residence, the tax authorities can ask you for proof. You must then be able to demonstrate how long you will be staying in Spain per year. For example, you can demonstrate this by means of telephone bills, gas, water, and electricity bills etc. etc. Someone who stays in Spain for at least 183 days is not only in the sense of the Spanish legislation but also in the sense of the Dutch-Spanish treaty considered resident in Spain.
Back to the Netherlands within a year
If you return to the Netherlands within a year of your departure, the Dutch tax authorities will still consider you a resident of the Netherlands for the interim period. In this case you are therefore deemed not to have left unless you can actually prove that you lived in Spain. Your situation will also be assessed here.