Private client—Netherlands—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Netherlands—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

Private client—Netherlands—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Netherlands published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Loyens & Loeff—Dirk-Jan Maasland; Jules de Beer

1. How does an individual become taxable in your jurisdiction?

In the Netherlands, resident individuals are liable to tax on their worldwide income and wealth. Non-residents are only taxable on certain types of income and wealth with nexus to the Netherlands. Domicile is not relevant for Dutch tax purposes.

For tax purposes, the residence of a person is based on a 'all-relevant-facts-and-circumstances test': if, based on all relevant facts and circumstances, a durable bond of personal nature exists with the Netherlands, that person is considered resident for tax purposes. Relevant considerations (or 'connecting factors') in this respect are the availability of a dwelling, the place of habitual abode and the location of family members, among others. The number of days spent in or outside the Netherlands is, in practice, one of the less relevant factors.

For non-residents, the connecting factor is the ownership of certain assets with a nexus to the Netherlands. These assets include real estate in the Netherlands, substantial interests in companies effectively managed in the Netherlands, and rights to shares in the profit of an enterprise effectively managed in the Netherlands, among others. The actual tax liability

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