American Expats in the Netherlands: 10 Things to Know Before Moving

The Netherlands is an appealing option for many American expats thanks to its strong economy, well-organized cities and high quality of life. It’s especially attractive from a tax perspective because of the 30% tax ruling, commonly known as the “30% facility,” which can significantly reduce Dutch income tax for certain qualified people relocating to work in the Netherlands.

However, moving from the United States to a Dutch city like Amsterdam or Den Haag is more than a lifestyle choice — it also reshapes your tax obligations, investment options and long‑term planning. Before you relocate, it’s important to understand how your worldwide income, U.S. tax return filing requirements and Dutch tax rules fit together so that you can avoid double taxation and unpleasant surprises.

1. As an American Expat in the Netherlands, Investing and Paying Taxes May Be More Difficult Than You’re Accustomed To

As an American citizen or long-term green card holder, you’re subject to citizenship-based taxation, which means the United States taxes you on your worldwide income no matter where you live. Even if you settle in the Netherlands and become a Dutch tax resident, you’ll still be required to file a U.S. tax return every year and stay compliant with U.S. tax laws.

This dual system creates overlapping tax obligations. You may owe Dutch income tax on your earnings in the Netherlands while also filing U.S. returns and potentially owing U.S. tax on the same income, with foreign tax credits and the U.S.-Netherlands tax treaty helping to reduce double taxation. You can learn more about broader expatriation and tax considerations that affect U.S. citizens and green card holders in Creative Planning’s piece on expatriation and critical financial planning considerations.

You’ll also want to familiarize yourself with annual Report of Foreign Bank and Financial Accounts (FBAR) and other foreign account filing requirements, especially if you open Dutch bank or investment accounts. Owning passive foreign investment companies (PFICs), which include most non-U.S. mutual funds and exchange-traded funds — even those offered by large global firms, can trigger punitive U.S. tax treatment and complex Form 8621 reporting. Because all non-U.S. mutual funds and ETFs are considered PFICs, American expats in the Netherlands generally want to avoid Dutch or other European mutual funds.

Instead, most American expatriates are better off owning U.S.-based funds that are exempt from PFIC rules. Working with a Dutch financial advisor can also introduce the Netherlands’ 21% value-added tax (VAT) on advisory fees, whereas American financial advisors typically aren’t subject to Dutch VAT. Many expats prefer to work with a cross‑border U.S. advisor who understands both systems.

For a broader overview of investing and planning as an expat, see Creative Planning’s Expat Guide to Investing and Planning for Americans Living Abroad.

2. You Likely Won’t Be Able to Invest With a U.S. Brokerage House

Many U.S. financial institutions no longer serve non-U.S. residents, including American expats in the Netherlands. Several brokerage firms will even proactively close accounts owned by American expats once they learn you now reside abroad.

On the European side, the EU’s MiFID II rules prevent EU residents from investing directly in many non-EU funds, including traditional U.S. mutual funds and ETFs. As a result, U.S. brokerage firms often block EU-resident clients from purchasing U.S.-domiciled funds.

Fortunately, MiFID II includes a provision that allows U.S. expats and other investors to buy U.S.-based funds as long as they work with a non-EU-registered investment advisor who purchases those funds on their behalf. This is why many American expats partner with cross-border financial advisors, such as Creative Planning International, who can help them achieve tax efficiency and compliance in both the United States and the Netherlands.

If you’re looking at your broader investment picture as an American living abroad, Creative Planning’s Tips for Investing as an American Expat offers additional context.

3. The Netherlands Has Unique Tax Policies You’ll Need to Plan Around to Help Avoid Excessive Taxation

The Dutch tax system uses a box-based approach and includes some rules that may feel unfamiliar to a new American expat. The Netherlands’ 30% ruling, Box 3 income tax and inheritance tax regime all require careful planning to avoid unnecessary tax liability and double taxation.

The U.S. and the Netherlands have three separate tax treaties — income tax, estate tax and Social Security — that coordinate tax treatment between the two countries and help mitigate the risk of double taxation on specific types of income. However, the existence of a tax treaty doesn’t automatically eliminate overlap; it’s still crucial to understand how worldwide income is taxed and when to claim a foreign tax credit on your U.S. return.

Interpretating the U.S.-Netherlands tax treaty and related agreements correctly requires specialized experience. A misstep — for example, assuming certain Dutch‑taxed earnings will be treated the same way in the U.S. — can lead to unexpected taxation in one or both countries. Working with an international wealth manager who focuses on expat tax obligations is often the most efficient way to use the treaty to your advantage, rather than it working against you.

For more on how tax treaties and FATCA interact for retirees abroad, see Creative Planning’s article on the tax and legal implications of retiring abroad, including FATCA.

4. To Buy or Not to Buy (a House), That Is the Question

Many American expats eventually decide they’d rather own a home than continue renting in their new Dutch city, whether that’s Amsterdam, Rotterdam or Den Haag. Before buying, it’s important to understand how Dutch and U.S. tax laws treat your home purchase.

The Netherlands taxes homeowners based on the rental income they would theoretically receive if they rented out their homes, which falls under Box 1 income tax. If you finance your purchase with a mortgage, you also need to consider U.S. IRS rules on foreign currency gains or losses related to paying off the mortgage — including refinancing, prepaying or selling the property.

From a U.S. perspective, you may owe tax on any “gain” created by currency movements when you repay the mortgage in a different U.S. dollar value, even if the nominal euro amount hasn’t changed. Losses, however, are ignored. The good news is that U.S. taxpayers can still qualify for the U.S. home sale exclusion on capital gains from a qualifying principal residence, while the Netherlands typically doesn’t tax gains on the sale of personal property.

Because rules are complex, many American expatriates work with cross‑border planners to model different housing scenarios before they commit.

5. The Netherlands’ 30% Facility May Offer Financial Benefits to American Expats

The 30% facility is one of the best-known perks for American expats in the Netherlands. It’s a special tax break available to certain incoming employees with specific expertise, typically for up to five years. That said, some aspects are in the process of being phased out.

Key benefits can include:

• Treating 30% of your employment income as tax-free for Dutch purposes (this will drop to 27% in 2027)
• Exemption from Dutch Box 3 investment income tax on worldwide financial assets during the 30% facility period (the exemption from boxes 2 and 3 began being phased out in 2025 and will no longer be offered after 2027)
• The ability to use taxes paid to the Netherlands on the other 70% of income as a foreign tax credit on your U.S. return, helping reduce the risk of double taxation

As your worldwide financial assets become subject to Box 3 taxation, your overall tax picture will materially change. This shift is a key moment to revisit your investment and gifting strategies with an advisor who understands both systems.

If you’re still deciding where to live as an expat, Creative Planning’s article on tax‑friendly retirement destinations for American expats can provide useful comparisons.

6. No Dutch Taxes on Capital Gains … at Least for a Time

While you’re benefiting from the 30% ruling, you may enjoy tax-free investment income in the Netherlands on your U.S. investment accounts. However, because of the “saving clause” in the U.S./Netherlands income tax treaty, U.S. taxable persons are still subject to U.S. passive income taxes on those same investments.

Once your 30% facility ends, Dutch residents are subject to Box 3 income tax on the value of their financial assets, which functions similarly to a wealth tax even though it’s technically categorized as income tax. Importantly for American expats, Box 3 taxes generally qualify as a credit against U.S. tax on the same passive income, helping avoid full double taxation.

Recent court decisions and legislative changes mean the Dutch government is moving toward taxing actual income and capital growth, rather than a deemed return, with new rules scheduled to take effect in the coming years. As of early 2026, Dutch lawmakers have approved framework changes that would shift Box 3 toward a system that distinguishes between capital growth and capital gains, with further refinements expected before final implementation.

Because these rules are evolving, you’ll want to stay in touch with an advisor who follows Dutch tax developments closely and can help you adjust your strategy as Box 3 changes.

7. Gifting and Estate Planning as an American Expat in the Netherlands Can Be Tricky — and May Result in Double Taxation if You’re Not Careful

The U.S. and the Netherlands have an estate tax treaty that’s designed to reduce double taxation on transfers at death, but it doesn’t eliminate every conflict. As an American citizen living in the Netherlands, it’s critical to understand how the two systems differ.

The United States taxes the estate of the deceased based on domicile, which for estate purposes generally includes all U.S. citizens regardless of where they live. The Netherlands, by contrast, usually taxes the beneficiary of the inheritance if the deceased was a Dutch resident — focusing on the recipient rather than the estate itself. This mismatch between taxing the giver versus the receiver can create unexpected tax liability if you don’t plan ahead.

Given the relatively high U.S. estate tax exemption, Dutch inheritance tax rules may often drive the overall tax outcome, particularly for transfers between U.S. citizen spouses. Thoughtful estate planning that considers both U.S. and Dutch rules is essential to avoid double taxation on your estate.

For more on cross‑border inheritances, see Creative Planning’s piece on inheriting from the United States while living abroad and its FAQ on inheriting money as an expat, tax reporting and cross‑border risks.

8. The Trust You Set Up in the U.S. May Help in the Disposition of Your Estate — But Consult With a Dutch Estate Planning Attorney

A U.S. trust may help streamline the transfer of your U.S. assets and help you avoid U.S. probate, and in some cases it can circumvent the need for an IRS transfer certificate.

On the Dutch side, though, the benefits of using a trust are less clear. The Netherlands is a civil law country and historically hasn’t recognized trusts in the same way common law jurisdictions do, which means Dutch tax and legal treatment of U.S. trusts can vary depending on the facts and the advisor interpreting them. Different experts may reach different conclusions, especially when both Dutch and U.S. rules apply to the same structure.

Because of this complexity, it’s essential to work with a Dutch estate planning attorney who understands cross-border issues and can coordinate with your U.S. team. To better understand what “cross-border” means in this context, you can watch Creative Planning’s quick explainer video on how cross-border planning is defined.

9. The Netherlands Has Forced Heirship; the U.S. Doesn’t

Forced heirship is a concept that surprises many Americans, because most U.S. states allow you to leave your assets to whomever you choose, subject only to limited protections for spouses. In the Netherlands, however, default rules require certain portions of an estate to pass to specific heirs.

Fortunately for American expats in the Netherlands, EU Regulation 650/2012 allows residents to specify in their wills that their estate should be governed by the law of their country of citizenship. This means a U.S. citizen living in the Netherlands can often opt out to have U.S. succession law apply to their estate, preserving flexibility similar to what they’d have back in the United States.

This election affects who your heirs can be, but it doesn’t change how the estate is taxed. Dutch inheritance tax rules may still apply if you’re a Dutch resident at death, even if U.S. law governs who receives the assets.

10. It’s Unlikely the Netherlands Will Assess Taxes if You Inherit Money From a U.S. Resident While You’re Living in the Netherlands

In many cases, the Netherlands won’t assess inheritance tax if you inherit money from someone who was domiciled in the United States and not a Dutch resident, even if you’re living in the Netherlands at the time you receive the inheritance. The key factors are the domicile of the deceased and where the inherited assets are located.

However, once those inherited assets are in your hands, they become part of your own balance sheet and may eventually be subject to Dutch taxation — especially if you die as a Dutch resident or hold the assets in structures that fall within Box 3 or the Dutch inheritance tax regime.

Coordinate Your U.S. and Dutch Planning With a Cross‑Border Advisor

If you are an American expat in the Netherlands and want help coordinating your U.S. and Dutch taxes, investments and estate planning, we’re here for you. Request a meeting with a wealth manager from Creative Planning International to discuss your specific situation and explore comprehensive cross-border strategies.