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Taxation of EU-fellows in the Netherlands

The Dutch Ministry of Finance recently published a resolution regarding the tax position of what are known as EU-fellows who work in the Netherlands.

For many years, the European Union has had a special research and development program to advance the EU’s competitive position with respect to the world market. One part of the program focuses on the development of Human Resources. Throughout the EU, researchers are sent to universities and research institutes to further their specialisation and advance their qualifications. These researchers are called EU-fellows.

The Dutch income tax position of EU-fellows differs from the Dutch tax position of other expats who are assigned to the Netherlands. This difference is defined in special articles in several tax treaties that the Netherlands has concluded with other EU-member states. The Dutch income tax position of EU-fellows working for Dutch universities depends on residency status, the type of employment contract, the job itself, free allowances and the application of the tax treaty. The new resolution details the Dutch tax position of EU-fellows and comes into effect on June 1, 2002.

Source: Ministry of Finance, IFZ2001/529M, 28 May 2002