Text: Mr. S.T. Ozyurt

Commuting or Emigrating (Netherlands and Turkey)

It may happen that, due to your work or another personal reason, you commute between two countries. According to the Dutch Tax Authority, commuting means that you do not always permanently live outside the Netherlands (emigrate) but travel regularly back and forth between the Netherlands and another country.

For people commuting between two countries, it is important to determine where they are liable for taxes and where they are insured for social security. In principle, you are liable for taxes and insured for social security in the country where you permanently reside. This is also called your main residence.

The Dutch Tax Authority assesses certain factors to determine if you permanently live in the Netherlands. These factors may include: where you spend most of your time, where you work, where your partner lives and works, where your children live and study, where you are insured, or where you have a general practitioner.

If you emigrate or leave the Netherlands under the remigration law, the Netherlands will no longer be your main residence, and you will live permanently abroad.

How long can you stay outside the Netherlands if your main residence is in the Netherlands?

• If you have Dutch nationality and live more than 8 months in a year outside the Netherlands, it means that your main residence is not the Netherlands. These 8 months can be calculated over any 12-month period, not necessarily per calendar year. In this case, you must always deregister from the Personal Records Database (BRP) at your municipality in the Netherlands, otherwise you may receive a fine.
• If you have a Dutch temporary residence permit, you may not stay outside the Netherlands for more than 4 consecutive months. Otherwise, your residence permit will be void.
• If you have a Dutch permanent residence permit, you may not stay outside the Netherlands for more than 6 consecutive months. Otherwise, your residence permit will be void.

Commuting affects your rights;

If you receive benefits: Your benefits may be stopped if you stay outside the Netherlands for a longer period.

• With an AOW pension in addition to your pension, you may not stay abroad for more than 6 months per year in total.
• With an AIO benefit (supplementary income for older people) alongside an AOW pension, you may not stay abroad for more than 13 weeks per year.
• With a WAO or WIA benefit, you may commute after approval from the UWV and stay abroad no more than 6 months per year.
• With a social assistance benefit for persons below retirement age, the maximum stay abroad is 4 weeks per calendar year.

If you have social housing:

In general, housing corporations require that you reside at least 6 months per year in your home. Otherwise, your rental contract may be terminated. Some housing corporations may have different rules; consult your rental contract. It is recommended to discuss this with your housing corporation.

Your health insurance:

If you live in the Netherlands, you are required to have Dutch health insurance. You must cancel your insurance if you permanently reside abroad. If you want to commute and are unsure about your situation, you can request an assessment from the SVB to determine whether you are insured under the Wlz (Long-Term Care Act).

If you emigrate/remigrate to Turkey:

Emigration means that you go to live abroad and become liable for taxes there. Remigration means that you return to your previous country of residence and become liable for taxes there. For example, Turks returning from the Netherlands to Turkey are remigrating to Turkey.

If you permanently live in the Netherlands, you generally pay taxes and social security contributions in the Netherlands (e.g., AOW, WLZ).

If you emigrate/remigrate abroad and there is a tax treaty between your country of residence and the Netherlands stating that you only pay taxes in your residence country on income from the Netherlands, you can apply for an exemption from Dutch taxes. This exemption is requested via the Application for Exemption from Wage Tax Form from the Dutch Tax Authority.

What makes Turkey special for emigration and remigration?

There is a treaty between Turkey and the Netherlands to avoid double taxation.

If you are deregistered in the Netherlands and registered in Turkey, you no longer pay taxes in the Netherlands on your company pension and private annuity. Additionally, no tax is withheld in Turkey on the company pension. This means you will receive your gross company pension amount as net in Turkey. This makes Turkey an attractive country for emigration or remigration, especially for people who have reached retirement age. AOW is taxed in the Netherlands. Exception: You do not pay tax on AOW if you live in Turkey and have Turkish nationality.

The AOW and AOW income support are also paid in Turkey according to the treaty between Turkey and the Netherlands.

Each year you are insured for AOW in the Netherlands, you accrue 2% AOW. You can accrue AOW until you reach retirement age. For each year you live outside the Netherlands, you receive 2% less AOW because you cannot accrue AOW while permanently living abroad.

Your Dutch nationality:

• If you only have Dutch nationality:

As long as you do not renounce your Dutch nationality, you cannot lose it by living abroad.

• If you have dual nationality, to retain Dutch nationality you must:

• Always renew your Dutch passport on time, or;
• Timely apply for a Declaration of Dutch Nationality, or;
• Live at least 1 of the 10 years in the Kingdom of the Netherlands or within the EU.