Tax Obligations for US Citizens Living in the Netherlands

Understanding Your Tax Obligations

As a U.S. citizen living in the Netherlands, you have tax obligations in both countries. Here's what you need to know.

The Netherlands has a progressive income tax system:

First €73,031: 36.93%

Above €73,031: 49.50%

U.S. citizens must file taxes regardless of where they live. Key requirements:

FBAR (Foreign Bank Account Report) for accounts over $10,000

FATCA compliance

Annual tax return filing

The tax treaty between the Netherlands and the U.S. helps prevent double taxation. Key provisions:

Foreign Earned Income Exclusion (up to ~$120,000)

Foreign Tax Credit

Specific rules for self-employment income

If you qualify, the 30% ruling allows 30% of your salary to be tax-free for up to 5 years.