DoubleTaxationUnited States – Netherlands tax treaty: residence, 183 days, rates
Convention between the United States of America and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed 18 December 1992)
- Signed: 1992-12-18
- In force since: 1993-12-31
- Official text
If both countries treat you as resident
- A dual-resident individual is a resident of the state in which he has a permanent home available to him; if he has a permanent home in both states, of the state with which his personal and economic relations are closest (centre of vital interests). Art. 4(2)(a) of the Convention
- A U.S. citizen who is not a Dutch resident counts as a U.S. treaty resident only if he would not be a resident of a third state under the Art. 4(2)(a)-(b) principles (or under the U.S. treaty with that third state). Art. 4(1) of the Convention
- If the centre of vital interests cannot be determined, or no permanent home is available in either state, the individual is a resident of the state in which he has an habitual abode. Art. 4(2)(b) of the Convention
- Habitual abode in both states or in neither: resident of the state of which he is a national; national of both or neither: the competent authorities settle the question by mutual agreement. Art. 4(2)(c), (d) of the Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7, Art. 15 |
| Pension | Only the country of residence. | Art. 19(1) |
| State pension (social security) | Only the source country (for pensions, the paying country). | Art. 19(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 20(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 20(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 10(2)(b) (as replaced by the 2004 Protocol) |
| Interest (deposits, bonds, loans) | Only the country of residence. | Art. 12(1) |
| Royalties (copyright, licences) | Only the country of residence. | Art. 13(1) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 14 |
| Other income | Only the country of residence. | Art. 23(1) |
How double taxation is relieved
- Netherlands: exemption: the income is not taxed but counts towards the rate on other income (credit for dividends, director’s fees, performance income) Art. 25(1)-(3), (6)-(7)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(4)-(7)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.