NETHERLANDS Law and Practice Contributed by: Nathalie Idsinga and Mignon de Wilde, Arcagna
Tax disputes have had a significant impact on the Box 3 regime. Following the Supreme Court’s ruling that the use of fictions and deemed returns in Box 3 violates the ECHR, the use of deemed income for other tax purposes has also come under scrutiny. Cur - rently, legal proceedings are ongoing regarding the notional rental value of the primary residence in Box 1 and regarding the lack of cost deduction for real estate under the current Box 3 System 2 (see 1.1 Tax Regimes ). In addition, since Box 3 continues to apply deemed returns in certain situations – even under the new proposed legislation – further Box 3 litigation is anticipated.
who do not require a permit. Foreign nationals stay - ing in the Netherlands for more than four months are required to register with the Dutch Municipal Personal Records Database ( Basisregistratie Personen or BRP). Employers must obtain a work permit before hiring a non-EU employee. Generally, a work permit is only granted if the employer can demonstrate that no suitable candidates are available in the Netherlands or elsewhere in the EU. Exemptions apply to highly skilled migrants (such as those who have completed a master’s degree, a postdoctoral programme or a PhD at a designated foreign institution) and certain scien - tific researchers. Some professions in the Netherlands require employees to hold an appropriate certification. To obtain or regain Dutch citizenship, an adult gener - ally has two options: the “option procedure” or “natu - ralisation”. The option procedure is available only to certain foreign nationals, but it is the fastest and sim - plest route to Dutch citizenship. For example, individ - uals may qualify after residing in the Netherlands for a specified period or by being former Dutch citizens. The naturalisation process requires applicants to pass a civic integration test and is generally only available to individuals who have lived in the Netherlands for at least five years. 7.2 Expeditious Citizenship There are no expeditious means for an individual to obtain Dutch citizenship. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms In the Netherlands, individuals under the age of 18 are considered minors. Minors may own assets, which are managed by their parents or legal guardian. A testator or donor may appoint an administrator other than the minor’s parents or guardian to manage these assets. In the event of loss of capacity, a court may place an individual under legal restraint. In such cases, a legal guardian is appointed to represent the incapaci - tated person. The court may also appoint a fiduciary administrator if an adult is unable to manage their own
5.2 Mechanism for Compensation This is not applicable in the Netherlands.
6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries This is not applicable in the Netherlands. 6.2 Fiduciary Liabilities This is not applicable in the Netherlands. 6.3 Fiduciary Regulation This is not applicable in the Netherlands. 6.4 Fiduciary Investment This is not applicable in the Netherlands. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship Foreign nationals intending to reside in the Neth - erlands for more than three months must obtain a residence permit. Applications are submitted to the Immigration and Naturalisation Service (IND). In most cases, applicants must first obtain a regular provision - al residence permit (MVV) before entering the Nether - lands. For stays of less than three months, neither a residence permit nor an MVV is required; a visa is suf - ficient. Specific rules apply to EU nationals, European Economic Area (EEA) nationals and Swiss nationals,
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