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Do we have a tax obligation in the Netherlands if we provide a service to a Dutch company for work done outside the Netherlands?

Question:
 
I would like some advice on the following situation:
Me and my partner are living in Portugal and we will be providing services for Dutch companies (our work location will be Portugal and we will provide the services electronically). Do we need to pay taxes in the Netherlands, and if so what would be better in our situation: to work as freelancers independently or to provide the services via a company we created in Portugal?
 
Answer:
 
If you are living and working in Portugal then there is no income tax obligation in the Netherlands. The fact that your client is a Dutch company doesn't affect this. Important is where the actual work is done or where your own business is based. Since this is all Portugal, Portugal has the right to tax your income. You can send an invoice to your Dutch client for the services you provide. But you may have to check the Portugese tax law to find out whether you are treated as a freelancer/business owner or as an employee of the Dutch company for which a payroll must be set up in Portugal.
 
 
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Comments (2)
Comment by Paulo on Wed, Mar 22nd, 2017 at 4:27 PM
Is this because it is between countries inside the EU? Or is that valid for any country providing services to a Dutch company?
Comment by Arjan Enneman on Tue, Sep 26th, 2017 at 1:51 PM
Important is first of all where the company who provides the service is based and secondly where the actual work is done. An applicable tax treaty will provide more information about where services are taxed.
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