The Dutch Supreme Court has ruled that the Treasury may not impose an emigration tax when people move abroad.
The ruling has been issued in the case of a Dutchman who emigrated to France in 2001. The court argues the man owes no taxes over his retirement pay as pensions are only taxable in the country of residency. Only Dutch nationals who emigrate to Belgium and Portugal, according to recent treaties, have to pay an emigration charge. The Dutch emigration tax aims to prevent people from cashing their tax-free pension build-up abroad. The finance ministry fears the Supreme Court's ruling will result in the loss of billions of euros in tax revenue. Deputy Finance Minister Jan Kees de Jager has already announced emergency legislation to off-set the expected loss.
Photo from ANP