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Dutch taxation on uk properties


I am British but have lived and worked since 1993 in NL. This year I inherited land and cash from my mother in Northern Ireland. The land is kind of moorland, so hardly generates any income but is let out to a farmer for grazing for a small amount per year, plus I get a payment from the Dept of agriculture and rural development in Northern Ireland. I have heard that for Dutch tax I have to declare the value of the land and pay 1.2% fixed tax rate on this amount which based on the inheritance tax valuation of the land this works out as more than the income I get from the farm letting plus the dard payment. Is this correct? Or is there a way around this? It will definitely affect a decision to keep the land for building a house, or to sell the land, which I really don‘t want to do. Thanks very much for any help.


The tax treaty between the Netherlands and the UK divides the right to tax the UK property to the UK since it is physically located in the UK. Although you formally have to report the value of the land in your Dutch tax return (under Box 3) you can claim an exemption for the full amount again in the same tax return to prevent double taxation. The income earned will not have to be declared in the Dutch tax return. 

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Comments (2)
Comment by Malcolm Hebden on Mon, Aug 24th, 2015 at 4:29 PM
Could anyone confirm that this answer is still correct because my advisor has suggested that the rule on this has changed.
Comment by Arjan Enneman on Wed, Sep 23rd, 2015 at 11:10 AM
This answer is still correct in my opinion.
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