What is my tax status if I am resident in France, actually work in the Netherlands and fly back every weekend?
Article ID: 360 | Last Updated: Thu, Feb 28, 2013 at 9:50 AM
I am a UK national, who has been a resident in France (with wife etc) since 2000. I am due to be employed by a Dutch company soon, and will have to live during the working week in Holland and return home at weekends. What status choices do I have? And also which régime would be best for me, knowing that my travelling expenses will be fairly high and the French tax system (paying into since 2001) is fairly miserable for offsets against travelling.
Since you will be employed by a company and will actually work in the Netherlands you become taxable in the Netherlands on the salary you will earn. As an employee it is not possible to deduct your work related expenses, in return you will receive an employment tax credit. There is one exemption for the costs of public transport. Plane tickets however are not considered public transport costs. So you will have to discuss this with your employer and see if he is willing to reimburse your costs somehow.
Do check if you qualify for the 30% ruling since this will make it possible to receive 30% of your salary tax free. This tax free amount is supposed to cover your extra territorial expenses.
Since your family will stay in France and you will fly back every weekend your main residence remains in France. This means that you will be treated as a non resident for tax purposes in the Netherlands and that you only pay tax on your salary in the Netherlands. If you will work in the Netherlands for a longer period it is good to check whether you can claim certain tax deductions depending on your personal situation since you may not be able to claim deductions in France if you don‘t have sufficient taxable income in France anymore due to the fact that your salary is taxed in the Netherlands.
Since you will work for one company only your status is that of an employee. It is not possible to freelance in this case. But as a freelancer you would not qualify for the 30% ruling too.
Be aware that you also fall under the Dutch social security from the moment you start working in the Netherlands, including health insurance, child allowance etc.