Many Dutch nationals living in South Africa believe staying registered with a Dutch municipality keeps them tax resident in the Netherlands.
This is wrong.
Even if you’re still “ingeschreven” (registered) in the Netherlands, if you’re living in South Africa and earning no Dutch-sourced income, you’re likely NOT a Dutch tax resident.
The problem?
Dutch expats continue claiming benefits like:
- Primary residence mortgage interest deduction
- Child allowance (“kindertoeslag”)
If you’re not actually a Dutch tax resident, you’re not entitled to these benefits.
The risk?
SARS is actively looking for additional revenue sources. Dutch expats who’ve incorrectly claimed years of Dutch benefits could face:
- Repayment demands
- Penalties
- Tax complications in both countries
What you need to know
Registration may be a factor, but it’s not the deciding factor for tax residency. If you’re living in South Africa, get your tax status clarified now before the authorities do it for you.
Also remember that you business’ tax residence is another thing you should think about. More on that topic in this article.
Not sure about your tax residency status? Contact our advisers below for a confidential review of your situation.
