Double Tax Avoidance Treaties in the Netherlands

Holland has signed numerous treaties for the avoidance of double taxation. These bilateral pacts ensure tax relief by avoiding double taxation with respect to income of individuals derived from both a source in Holland and another country.

The Netherlands has signed close to 100 double tax avoidance treaties. Investors planning to establish local businesses should obtain information regarding the advantages offered by these treaties, in case they are applicable to their home countries. For example, Holland has signed such treaties with the United States, the United Kingdom and the Arab Emirates.

Our Dutch specialists in accounting can provide you with details regarding the treaties for the avoidance of double tax concluded with your home country or any other countries you may be interested in.

Double tax avoidance treaties

The treaties for double tax avoidance determine which countries may levy taxes with respect to income generated under Dutch jurisdiction. Persons living outside Holland but deriving income from Dutch sources are taxed just once on capital and income, in accordance with the provision of these treaties.

Thus persons deriving income from Holland but living abroad pay less tax on income in Holland. Our local tax specialists can provide you with more details on the taxes that foreign residents must pay in Holland, including the thirty percent reimbursement ruling for international employees.

You may also benefit from the participation exemption rule to avoid paying tax on dividends.

The significance of the double tax treaties for international investors in the Netherlands

The treaties for avoidance of double taxation are beneficial for both individuals and companies opening branches in Holland. These bilateral conventions provide for reduced rates of withholding taxes for royalties and dividends agreed between the countries.

Companies and individuals residing in countries that have not yet concluded agreements for double tax avoidance with Holland can still take advantage of the Double Taxation Decree that, to a certain extent, reduces the tax burden.

If you need further information on the Dutch taxation system or professional audit and accounting services in Holland, please, get in touch with our tax specialists.

See also the tax office website about the Double Tax Treaties.

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