Individual income taxation in the Netherlands is based on residence.
Under Dutch tax law, a number of criteria are used to determine the place of residence. The most important criteria include the following:
Where a permanent home is maintained.
Where employment duties are performed.
Where the individual's family resides.
Where the individual is registered with the local authorities.
Where bank accounts and other assets are maintained.
The intended length of stay in the Netherlands.
If an individual is resident in the Netherlands, they will be taxed on their worldwide income.
If an individual is not Netherlands resident, they will usually only be taxed on their Dutch-source income.