Tax laws regarding foreign real estate rent income.

2POSTS

5 years ago

Hello,

My Name is Stephan Metz, I am a German citizen and would like to move to the Netherlands for extending my education at the University of Den Haag.

As I do own multiple apartments in Germany and Romania, which are my main financial income source, I would kindly ask you for advice regarding taxes in my situation, as an expat.

As I have seen, there are a variety of categories, or classification boxes that usually apply for income IN the NL.

What do I have to consider, when moving to the NL?

For example rental income taxes for Real Estate in Romania are currently 6%.

The situation in the NL is tragically different, as far as I have seen.

What situation would I confront with, after declaring my real estate income, if moving to the NL as an expat?

Thank you very much.

Greetings,

Stephan.

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Cynic UK/Netherlands Expert

8115POSTS

5 years ago

Hi and welcome to the Forum.

Where you are taxed is decided by where you are deemed as being resident for the greater part of the tax year for the respective country; generally means if you spend more than 183 days resident in any one country, then they will assess you on your worldwide income.聽 It does get complicated when different countries tax-years don't run at the same time (i.e. the UK runs from Apr > Mar, the Netherlands runs from Jan > Dec), in those circumstances, both countries could stick their hands in your wallet.

There will almost certainly (check) be a double taxation agreement in place between (NL/D); these generally state which country will tax state benefits/pensions and that you won't be taxed twice on the same income.聽 These agreements only cover income taxes, not social taxes.聽 If you are currently paying 6% tax in Romania, then be prepared for that to increase by 3 times, maybe more and the tax agreement will not apply to this.

My advice is to employ a tax adviser in the country where you decide to live and get some advice on how to mitigate your tax liability.

Hope this helps.

Cynic
Expat Team

12m.studio Member

2POSTS

5 years ago

Hey Cynic,

Thanks for your response.

I did some research by myself and arrived at the same conclusion.

Calling the Tax Information Line for Non-resident Tax Issues or employing a tax adviser.

Thanks again!

Stephan.