Property tv
Thread Status:
Not open for further replies.

Who pays taxes?

Discussion in 'Buying Overseas Property' started by andy, Sep 13, 2006.

  1. andy

    andy New Member

    Welcome all,
    We are in the middle of setting up a contract to move to Netherlands from us to work. I am wondering if it is possible or typical that the company pays for one or the other of the taxes that will have to be played? Also any advice on if rent for housing should be an allowance or written off as an expense? Thank you in advance
     
  2. armando

    armando New Member

    Hello Andy,
    As a US citizen you are taxed on your worldwide income. Each person can get an $80,000 annual exemption on income earned outside the US on the income taxes. Over that then you have to pay. Any taxes you pay in Holland can be also credited.

    Taxes that might be due on income over $80,000 can be reduced through the normal deductions too. So you should be able to eliminate your US taxes through proper structuring of the agreement.

    What you call the housing allowance doesn't matter so much, since no matter what you call it will count as income. Although a certain portion can be eliminated from your income over and above the $80,000 exclusion.

    The IRS Publication for overseas filers is Publication 54.
    See you soon
     
  3. Holland-Banking

    Holland-Banking New Member

    Andy,

    If you buy a house the interest you pay can be deducted from your income.
    Writing off as an expense is only possible if you would have a company who would buy the property.
     
Loading...
Thread Status:
Not open for further replies.

Share This Page