UK non-domiciled status versus the Dutch deemed non-resident status

No deal hard Brexit upcoming: are you considering leaving the UK?
It looks like Britain is heading towards the cliff of the no-deal hard Brexit after the British Parliament will vote down the May-Barnier deal, early December 2018. We expect that will cause many expats in the UK who currently are taxed under the favourable UK “non-domiciled” tax regime to leave the UK as soon as possible.
22 nov 2018 Laatst gewijzigd: 3 feb 2020 Kennis Leon van Baal

‘Non-dom’-regime makes UK a fiscal paradise for foreigners

Under the ‘non-dom’ regime the expat is generally only taxed on income derived in the UK or remitted to the UK. The UK is therefore a fiscal paradise for foreign (wealthy) individuals who do not have their domicile (roots) in the UK.

The Netherlands as a fiscal paradise for wealthy individuals?

Did you know that also the Netherlands can be a fiscal paradise for these foreign wealthy individuals?

A similar (or even better) situation can usually be set up in the Netherlands for wealthy individuals moving to the Netherlands who generally speaking have not been a resident of (or close to) the Netherlands for more than 5 years in the last 25 years.

The benefits of the Dutch facility – which has a maximum duration of 5 years – are substantial, for instance:

  1. the individual does not need report any income at all (except for Dutch source income, such as income from a Dutch company or from Dutch real estate);
  2. the individual specifically does not need to report income from investments abroad or from a foreign substantial interest (dividends and capital gains from closely held companies, >5% owned).

The Dutch facility takes some Dutch tax planning and setting up a Dutch company but it can certainly be done. 

Here is an example of the possible benefits of the Migrantic structure:

Questions in your case?

Please contact me if you have any questions about this article.



Leon van Baal

Migrantic, Tax & Immigration Lawyers
Specialisme(n): Internationaal belastingrecht, inkomstenbelasting, DGA’s en expats
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