How does the US tax system compare to the Netherlands tax system for expats?
In this preview from an upcoming episode of Passport To Wealth, cross-border tax professional Kaitlin Krozel explains the key structural differences between US taxation and the Dutch tax system.
The United States taxes its citizens on worldwide income regardless of where they live. Income is divided into categories such as ordinary income and capital income, subject to progressive federal tax rates and sometimes state tax obligations for Americans abroad.
The Netherlands approaches taxation differently. Its system is primarily residency-based and organized into what is known as the Dutch three-box tax system:
• Box 1: employment income, wages, and salary
• Box 2: income from substantial shareholdings (generally 5% or more ownership in a company)
• Box 3: investment and wealth income
Understanding how these two systems interact is essential for Americans living in the Netherlands, considering relocation to the Netherlands, or managing cross-border tax planning between the US and the EU.
Host Arielle Tucker, CFP®, EA sits down with Kaitlin Krozel to break down how US expat taxes work alongside Dutch residency taxation and what Americans abroad should know.
🎧 Full episode of Passport To Wealth coming soon.

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US vs Netherlands Tax System for Expats: The Dutch 3-Box Tax Explained