If you have dual citizenship in the US and the Netherlands, do you pay income tax in both countries?

Question

I am considering moving to the Netherlands for at least six months out of the year and I'm considering dual citizenship, but will I have to pay income tax in both countries or just one? That would be horrible if I was taxed twice!

Answer 1

The US is one of the few countries which tax citizens on income earned overseas. Most countries tax income of residents, regardless of citizenship (the US does this too) but do not tax overseas income of their citizens.

However... there are deductions in the US tax code related to overseas income. So long as you are subject to the taxes of your country of residence, you may qualify to deduct approximately $80,000 from your income for the purposes of determining the US tax owed. If you earn less than the threshold and live the full tax year overseas, no US tax would be owed. You are still responsible to file, even if no deductions were made and no tax is owed.

Answer 2

some countries actually have an international agreement where a US citizen working away may not pay taxes in both countries at the same time , i know for a fact that France does not penalize you in taxes for earning income in the US, and living in France .and as well as you working in another country such as France .
i tried to find a listing ,but unfortunately i had no luck .
if you know anyone that has knowledge of international laws ? ask ,for i cannot find the laws on the Internet .
sorry ,
there has to be something you can find out ,i seriously doubt that one must pay taxes in both contries at the same time .
i did not see the part where you said #i may consider dual citizenship , that may change the outlook on that .
please notice that some countries do not allow dual citizenship , if not mistaken ? the Netherlands do not allow you to take dual citizenship
The Dutch Immigration and Naturalization Service (IND) has notified some individuals who applied for or were granted Dutch citizenship that they are required to relinquish their U.S. citizenship as part of the naturalization process. More...
here is the link in dual citizenship with the Netherlands
http://netherlands.usembassy.gov/dutch_citizenship.html

Answer 3

No, but, if you are only going to be out of the country for 6 months, you will have to pay taxes in the US on income made in the US. Technically the same would go for the Netherlands. If you have one employer, you will be taxed in the country in which you are paid.

Answer 4

Hey, i am Dutch, well, i was born in the Netherlands. My dad lives there, i visit the Netherlands now and then, i now live in the UK for a couple of years, i know that this doesnt answer your question. I dont think you should pay income tax in both countries when you arent even in one of them!

Answer 5

You get taxed ONLY for your income. If you make a paycheck in the Netherlands, you get taxed by the Netherlands. Not by the US.
When you work in the US, you get taxed for the income you made in the US. Good luck with your job. Never been anywhere outside of the US!!

Answer 6

And let's not forget the more onerous requirement to file form TDF 90-22.1 if you have a bank account in Canada that had $10,000 or more in it during the year. As for the FEIE, if you don't file, you didn't make the election. As a single adult, your filing requirement starts at $9500, so the $35K is waaaaay over that.

Answer 7

It,s right that you would be tax twice by both country,because you aren't from one country

Answer 8

You have to ask yourself just how bad you want to smoke legal pot and drink beer that comes in green bottles.