Moving to Dubai from the Netherlands

The Netherlands has a tax treaty with the UAE, and many Dutch entrepreneurs and professionals now run their businesses from Dubai. When you emigrate, the Dutch tax authority issues a protective assessment that can follow certain assets for years, so it pays to plan before you deregister.

At a glance

• Tax treaty: the Netherlands and the UAE have a double tax agreement.
• Substantial participation: emigrating is treated as a deemed sale of a substantial shareholding in a company. The resulting tax is deferred but, for emigration after September 2015, the claim does not lapse.
• Pensions and annuities: the tax benefit you received can be reclaimed if you commute a pension or surrender an annuity within 10 years.
• Security: moving outside the EU or EEA can mean providing security for the deferred tax.
• Inheritance tax: Dutch nationals are treated as Dutch resident for inheritance and gift tax for 10 years after emigrating.

Leaving the Netherlands

Dutch residence depends on all the facts: where your home, family, work and social ties are. Deregistering from the municipality is necessary but not enough on its own.

Shareholders

If you hold 5% or more of a company, plan the timing of dividends, sales and any restructuring around the protective assessment. Dividends and sales after you leave can trigger payment of the deferred tax.

Family and estate planning

Because of the 10-year rule for Dutch nationals, the inheritance position does not change straight away. Wills, gifts and the way assets are held should be reviewed together with the move.

How Imperial Group helps

• A review of your residence position before you move, so you know when your home-country tax exposure actually ends
• The right UAE structure for your business: free zone, mainland or a holding company, with real substance
• Company setup, visas, Emirates ID and bank account opening support
• UAE tax residency certificate, corporate tax and VAT registrations from day one
• Ongoing accounting, tax filings and a single point of contact for everything in the UAE

Sources

• Belastingdienst: Protective assessment in the case of emigration
• RSM Netherlands: What is taxed under Dutch inheritance tax

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.