Did you know that both the UK and the Netherlands can be a fiscal paradise for foreign wealthy individuals? For these people (as for us poor people) the actual weather is still dismal but the fiscal weather is very bright indeed (contrary to our 52% tax bills).
The UK has its “non-domiciled” tax laws. The advantages of a “non-dom” status can be considerable for those with large amounts of investment income who do not have the UK as their home country
A similar (or even better) situation can usually be set up in the Netherlands for wealthy individuals moving to the Netherlands who generally speaking have not been a resident of (or close to) the Netherlands for more than 8 years in the last 25 years.
The benefits of the Dutch facility – which has a maximum duration of 8 years – are substantial, for instance:
- the individual does not need report any investment income at all (except for Dutch source income, such as Dutch real estate);
- the individual does not need to report income form a foreign substantial interest (dividends and capital gains from closely held companies).
The Dutch facility takes some Dutch tax planning and setting up a Dutch company but it can certainly be done.