Knowledge Base


Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.


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.
 
 
Attached Files
There are no attachments for this article.
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.
Name
Email
Security Code Security Code
Related Articles RSS Feed
Money Transfer from my UK account to my NL Account
Viewed 3419 times since Sat, Feb 28, 2015
What is the so called WOZ value of my house?
Viewed 37074 times since Sun, Nov 20, 2011
Dutch taxes on foreign (US) accounts
Viewed 9939 times since Sat, Dec 8, 2012
I am made redundant and receive a lumpsum payment. What are the tax options?
Viewed 55552 times since Sat, Nov 5, 2011
Freelance tax return and 30% ruling
Viewed 4344 times since Sat, Feb 23, 2013
Tax return for non resident working as freelancer for a Dutch company, mostly outside NL
Viewed 6636 times since Thu, Nov 8, 2012
Is paying the college education cost of my son considered a (taxable) gift?
Viewed 3079 times since Thu, Dec 10, 2015
Tax rate and tax brackets in the Netherlands - how is tax calculated?
Viewed 16138 times since Tue, Feb 14, 2012
Tax on a second part time job in the Netherlands
Viewed 12977 times since Wed, Jun 13, 2012
Protective assessment upon emigration
Viewed 8412 times since Fri, Feb 21, 2014