I am British and have been living in the Netherlands for the last 12 years as resident tax payer. I have a house with mortgage in Amsterdam. I have kept my house in the UK (with mortgage) when I left for the Netherlands 12 years ago. The house has been rented on and off and I have paid taxes on the rental income to the UK tax authorities only and never declared it to the Dutch people.

What does the tax treaty say about this? Have I broken the Dutch tax law?

Regards,
Scot

Generally, once you are considered resident in a OECD country (like Holland) you are taxable there on your WORLDWIDE income which would include rental income from the UK.

Since the income has its source in the UK, the UK would have primary taxing rights. Nevertheless, you should report this net income to the Dutch. You would take a credit against your Dutch tax for the amount of tax paid to the Brits on the rental income.

Generally, once you are considered resident in a OECD country (like Holland) you are taxable there on your WORLDWIDE income which would include rental income from the UK.

Since the income has its source in the UK, the UK would have primary taxing rights. Nevertheless, you should report this net income to the Dutch. You would take a credit against your Dutch tax for the amount of tax paid to the Brits on the rental income.


The problem is that Dutch will give me credit on the tax I have paid to the UK which is on the rental, but they would tax me on the value of the property which is much higher than the tax I have paid on the rental to the UK. Am I right?

Scot.

Actually, you should employ a Dutch tax professional to guide you on this issue.

This is a forum for US tax matters.