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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Expat Finances Megathread
 
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Boris Galerkin
Dec 17, 2011

I don't understand why I can't harass people online. Seriously, somebody please explain why I shouldn't be allowed to stalk others on social media!
So it looks like I'm moving to the Netherlands next year; are there any American --> Netherlands expats hanging around? I'm just confused about a few things regarding taxation and social security basically. For example I'd qualify for the 30% ruling which from what I can tell is a no brainer to accept, but surely there are consequences since no free lunch etc? I would also be paid a salary in euros as well from a non-American company so goodbye 401(k) and I guess the OP says I can't contribute to a Roth IRA if I claim the FEIE. But the OP also suggests that maybe it's better to not claim the FEIE? Because I'm pretty sure income taxes in the Netherlands are way higher than in the US.

* # ¿ Oct 29, 2015 14:48
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Boris Galerkin
Dec 17, 2011

I don't understand why I can't harass people online. Seriously, somebody please explain why I shouldn't be allowed to stalk others on social media!

Gold and a Pager posted:

If you are moving to the Netherlands to work for a Dutch company then you will have to pay full Dutch taxes to the Netherlands on your worldwide income. You still will have to file your US taxes but should not end up owing any money to America assuming your only income is from your job and you don't have taxable investment accounts, rental property, etc. Dutch tax rates should be higher than in the US at pretty every income level, it would make more sense to use FTCs to cover your US tax liability as it gives you more options than the FEIE and isn't really any more complicated. FTCs are nice as they should allow you to contribute to a Roth IRA, I think you could be eligible for certain tax credits when you have kids, and any taxes paid above and beyond to what you would owe in the US can be carried over for 10 years, so if you go back to the States, then you could use them to pay fewer taxes.

I don't know much about the 30% rule other than what I've seen on Google. I found this thread that seems to go pretty in-depth explaining the ins and outs of doing it. By electing to use this rule, it may change the math on whether or not it makes more sense to use the FEIE or FTCs to eliminate your US tax burden as it could reduce your Dutch tax burden to less than what you would owe on that same income in the US.

Cool, thanks for the info. I'll look into the FTC.

Gold and a Pager posted:

The US and Holland have a totalization agreement so you don't need to worry about having to pay SS taxes or that you will not qualify for SS in either country based on your time spent there.
in the US.

What exactly does this mean? That I would contribute to the Dutch social security system and…? To be frank I don't really know how retirement/social security works in both the US and other parts of the world. I just assumed that in the US I would receive little to no benefit from the SSS anyway and my retirement would be covered by my own retirement savings.

* # ¿ Oct 29, 2015 15:27
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Expat Finances Megathread