CFAmovingsoon

I'm not sure if you'd want to reside in the Netherlands, there's not much space left here, compared to Canada or the UK even. Maybe you just chose the Netherlands for arguments sake too, but I don't agree that you would not pay any tax, especially not if the Brazilian company pays the Brazilian tax for you, that would then be seen as income and not as paying tax. If there's a tax agreement there is also an exchange of information. I know, I've been there, in my case in a good way, strangely enough. In the Netherlands (where I currently reside) you'd also still pay a (hefty, because it's based on your world wide income)
charge of national insurance contributions. You'd still have to declare your world income too if you live here.
Uw persoonlijke situatie en inkomstenbelasting I filled it in and translated the most important conclusion: "Because you have income from a country other than the Netherlands, you must also declare tax in that other country. There are agreements between the Netherlands and other countries so that income can not be taxed twice.You will have to file 2 returns, but you only pay tax once . Therefore, you may be entitled to a deduction for the prevention of double taxation. "
Plus you'd still have to pay tax on your world wide assets.... Which is hefty too.

The Netherlands is surely not a tax haven.... except if you are a company like g%%gl3 or a band like youtwo..... (but this might be in the past now, there's been much ado about it)

Novocastrian

Of course he does. I didn't say I approved of it. I didn't marry him, that was the OH's sister.

Jingsamichty

I live in the UK but don't pay any UK income tax. My kids go to UK schools, use the NHS etc, but I don't pay a penny towards it.

That's what happens when countries have tax treaties.

Tirytory

I know it's not you... I had to ask you the question about the infrastructure cause it is your bil guv... You're not morally responsible for him

I do think tightening the tax laws up in the UK might help quite a bit though!!!

DandNHill

In answer to the OPs question... Another 10 years is a very long time to be miserable...go where you are happy!!!

As for the taxation thingy, a friend has a home in Sussex UK where his wife and 4 kids live and he works in Bahrain and doesn't pay any tax whatsoever on his income... Same if you're in Dubai, there are many places where you can avoid tax if you don't mind where you live.

BristolUK

I've had about 6 goes at writing something.

I think I understand the question but I'm struggling to see the 'problem' of choosing between keeping the full $300k and "only" keeping $170k of it.

Whatever one finds appealing about NS can't one achieve much the same somewhere in Europe with $130k more? Each year.

The additional cost of having a comparable home in Europe would be more but wouldn't that soon be wiped out by the ongoing gain of $130k a year?

One also assumes one doesn't suddenly just get a salary of $300k and in working up to it one might have resources that at least partially offset the higher cost of the European home.

So perhaps I am missing some understanding.

JonboyE

Canada taxes residents. Citizenship is irrelevant in 99.9% of cases.

It doesn't matter if there is no tax treaty. The authority to deduct a foreign tax credit is in the Income Tax Act, not the tax treaties.

LostInNS

Thanks for all the replies. Well it seems like it's 50/50 between "live where you really want to live" and "take the higher amount and stay in Europe".

We have been sort of trial living here for about half a year (our stuff is still in Europe due to house not sold yet) and I couldn't find a job yet which is something that worries me (but we knew it would be hard before we decided for NS just as we knew he had to pay taxes but decided it was worth it). I've lived in other countries before and always managed to fit in and make friends. I have made friends here too but something is missing somehow. It might be just me getting cold feet and realising the permanence of moving across the Atlantic and being much much further away from family...I don't know. Of course we knew all this before but it seems to be hitting closer to home that I thought it would. I guess having to settle basically alone because my OH is 2/3 of the time at work abroad doesn't help either. But then again other people emigrate being single so that's not an excuse. I guess since we haven't brought our things over yet I'm doubting our decision and stop it while we still can. So the tax/money question i guess could be just looking for a valid reason to not move here after all...

LostInNS

You are right, Netherlands is certainly not a tax haven but I can't confirm your other statements. My OH lived there while working in Brazil for more than 183 days a year. Income tax was paid by his company in Brazil as that's where he worked. He declared his worldwide income in the Netherlands and had to pay zero tax in the Netherlands due to tax treaty with Brazil. So if you had to pay tax on your Brazil income I'd contact a good tax advisor. I can give you the name of ours if you want. They are specialised in expats.

LostInNS

Yes to #1. I mistakenly said citizen but meant resident.

I'm not sure what you mean by your 2nd statement. Do you mean that income tax paid in country Z can be deducted from the income tax he would have to pay in Canada even if country Z does not have a tax treaty with Canada?

JonboyE

Yes, it is in section 126 of the Income Tax Act. There is some light reading here Income Tax Folio: S5-F2-C1, Foreign Tax Credit.

LostInNS

Thank you! I'll just go get a coffee before starting that read lol

Oink

Oink

You pay VAT on stuff and rates right?

Jingsamichty

Yes, VAT, council tax etc, but not income tax or NI.