Living in Germany, working in Holland

[darmstadt]

I though that German tax rate was more favourable that the Dutch one. I was/am planning to move to Köln.

FTFY...also known as the city with the best nightlife in Germany.

[petergriffin]

In fact if you live in Germany and work in Holland, the favourable Dutch tax rate foreigners should work in your favour.

I though that German tax rate was more favourable that the Dutch one. I was/am planning to move to Cologne.

[darmstadt]

no, normally not. You pay tax in Holland and then declare it on your German tax form, but it doesn't get taxed again. If it wouldn't be taxed in Holland obviously they would tax it in Germany. That setup you describe sounds a bit dubious. I think if the Dutch tax authorities had checked up they may well have come to another conclusion. If you had been working for a German agency it would be less obvious

In fact if you live in Germany and work in Holland, the favourable Dutch tax rate foreigners should work in your favour.

Admittedly it was some time ago but I just went along to the Finanzamt, got a form signed and stamped and this was then sent to the Dutch tax authorities to show I paid tax in Germany and so didn't need to in Holland.

[BlasterBates]

Isn't there a recipricol tax agreement between Holland and Germany so that if you live in Germany but work in Holland you'll still pay tax (and everything else) in Germany? I know when I did a contract in Amsterdam I had to get some bits of paper from the Finanzamt to send to the Dutch agency to show that I lived and paid taxes in Germany so that I wouldn't get taxed in Holland.

no, normally not. You pay tax in Holland and then declare it on your German tax form, but it doesn't get taxed again. If it wouldn't be taxed in Holland obviously they would tax it in Germany. That setup you describe sounds a bit dubious. I think if the Dutch tax authorities had checked up they may well have come to another conclusion. If you had been working for a German agency it would be less obvious

In fact if you live in Germany and work in Holland, the favourable Dutch tax rate foreigners should work in your favour.

[darmstadt]

Isn't there a recipricol tax agreement between Holland and Germany so that if you live in Germany but work in Holland you'll still pay tax (and everything else) in Germany? I know when I did a contract in Amsterdam I had to get some bits of paper from the Finanzamt to send to the Dutch agency to show that I lived and paid taxes in Germany so that I wouldn't get taxed in Holland.

[Cliphead]

Live Market

Yep, that's what I remember

[Paddy]

Off topic but Euroland related I suppose.

Anybody working in Brussels? What's the market like these days?

Live Market

[Cliphead]

Off topic but Euroland related I suppose.

Anybody working in Brussels? What's the market like these days?

[norrahe]

It pays relatively well in cloggieland, but not sure about travel expenses.

You'll also need to make sure you have a Dutch payroll company as you can't get away with using a UK ltd anymore. Not sure what your set up is in Germany, but Dutch tax authorities prefer that you are a taxpayer if you earn there.

Travel expense (visiting home/family) I've been told seem to be taken into consideration with the 30% ruling.

[petergriffin]

Some years ago it made sense to live in Germany and commute to the Netherlands because a) the wages were higher in Holland and b) usually Dutch employer offer unlimited travel expenses refund (at that time also for contractors).

Is that still so? Thanks