Last modified: 09 December 2013
What happens if you leave the Netherlands?
For the period you live in the Netherlands you have to pay tax in the Netherlands. Until that moment you are treated as Dutch resident. The moment you leave the country this residency ends. It is very important that you deregister at the local municipality. Otherwise the tax authorities believe you are still living in the Netherlands and keep sending you tax returns based on this assumption.
If, after you left, you continue to work in the Netherlands or do business from an office in the Netherlands or if you still own a property in the Netherlands then you will become a non resident tax payer. In that situation your tax return in the year of migration will consist of a resident part and a non resident part. In the non resident period you may still be able to claim certain deductions.
Due to the complexity in the year of migration we advise you to contact Expatax for preparation of your tax return. If you only have income in the Netherlands for part of the year chances are high that you can claim a refund.
After you left the Netherlands you are no longer insured for Dutch social security unless you keep income from the Netherlands. The only social benefit you keep is the state pension (AOW) but you don't pay premium anymore. Every year you were in the Netherlands you built up 2% of the full amount. The SVB will pay out the benefit when you become 65. See also the brochure about the AOW.
Once the year in which you have left the Netherlands ends the tax office may send you a special tax return: the M form. The tax office can only do this when they know your new address or when you have authorized somebody else to arrange your tax matters in the Netherlands. For more information, see below. If you don't receive one, an M form can be requested. This is important because most of the time the tax return will show a refund. Please contact us so we can file the M form for you.
To receive the refund we advise you to keep your Dutch bank account open. A foreign bank account will delay the procedure further.
It's possible that you also receive a so called conserving or protectective tax assessment. You will receive one if you have deducted premiums for a lijfrenteinsurance in the past or if you built pensionrights. The tax assessment is based on the value of your insurance- and pensionrights. You can get a time extension of 10 years for this assessment. Once the ten years are over you don't have to pay the tax anymore. Only if you end, sell or lend your pensionclaims during the 10 years the time extension will be withdrawn and tax has to be paid.
If you receive a monthly provisional refund it's best if you cancel it to prevent that you have to pay some of it back at the end of the year.If you leave the country you can authorize Expatax to take care of your tax matters. Of course you can decide to arrange everything yourself but if you authorize us things can be arranged much quicker. Here you will find our authorization form.
A tax return for the year you leave the Netherlands can only be filed once the year has ended. You can contact Expatax at that time so that we can file the M form for you.
If you no longer use the Dutch property as your main residence then you lose the possibility to deduct the mortgage interest. The property will then move from Box 1 to Box 3. The property stays taxable in the Netherlands based on international law and tax treaties since it is located in the Netherlands. The real rent you will receive is not relevant and neither are the other costs you have to make (tax, maintenance etc.)
Real value of the property
------------------------------------ * 4% fictitious profit * 30% = tax to be paid
So 1.2% over the equity in the property. If there is no equity then you don't pay anything in NL. The 4% fictitious profit is reduced pro rata based on the months you were in the Netherlands in the year of emigration.
Advice: try to cover the mortgage interest with the rent you would like to receive.
If you sell the property with a profit in the future then this profit is tax free since there is no capital gains tax in the Netherlands for individuals. Any loss is however not deductible either.