Working in Two Countries? Your Guide to Avoiding Double Taxation

At my firm, Tax Doctor, one of the most common challenges I help clients with is international work. I often get calls from people saying, "I live in the Netherlands but worked in the UK for a few months. Do I need to find an accountant near me in both countries? I'm completely lost."

You're not alone. The rules are complex, but as a dedicated tax advisor in the Netherlands, I

The Big Question: Where Do You Pay Income Tax?

The foundation of international tax law is the 183-day rule. It’s the first thing I check when a new client comes to me. In simple terms:

• If you work abroad for more than 183 days in a 12-month period, the country where you work (e.g., the UK) generally gains the right to tax the income you earn there.

• If you stay for less than 183 days, the Netherlands usually retains the right to tax your full salary.

This sounds simple, but the devil is in the details. The count includes weekends, holidays, and even sick days. It’s a measure of physical presence.

My Approach: How I Secure Your Tax Exemption

When a client has exceeded the 183-day limit, my job as their tax consultant is to ensure they don't pay tax twice. We do this by claiming an exemption in the Dutch tax return using the official "day-fraction method."

I conduct a detailed analysis to build this fraction:

• The Denominator (Your Total Workable Days): We calculate the total days in the year, then subtract all weekends, agreed-upon vacation days, public holidays, and any structural part-time days off. This gives us your true number of workable days.

• The Numerator (Your Foreign Work Days): I then calculate the exact number of days attributable to the foreign country. This includes your workdays there, but also a specific allocation for travel days (usually 0.5 per country) and any sick days where you would have worked abroad.

The result is a precise calculation that maximizes your tax relief, ensuring you only pay tax where it’s legally due.

The Most Common Mistake: Forgetting Social Security

Here’s a critical point many people miss: your income tax exemption and tax treaties does not apply to social security contributions (like your AOW pension).

The social security rules are different. A key clause in most of the social security treaties states that if you work in both countries (even for a few days), you remain fully insured and liable for contributions in your country of residence, the Netherlands. I've seen many people get this wrong, leading to unexpected costs. As your tax accountant, I make sure we address both tax and social security correctly from the start.

Need a Good Tax Consultant in the Netherlands?

Navigating Dutch and international tax law is what I do every day. Whether you're in Amsterdam, The Hague, or Eindhoven, the challenges of cross-border work are the same. Instead of getting lost in the rules, let an expert handle it.

If you’re dealing with an international work situation, I’m here to help. Contact me here, and let’s make sure your tax return is handled correctly and efficiently.