The tax system of the Netherlands is sophisticated and comprehensive, with fairly high tax rates. There is no precise statement of what constitutes residence, but the criteria include the length of time spent in Holland during a tax year, ownership of real property, family or other personal connections. If an individual is registered in a municipal register then there is a presumption of residence. Establishing non-residence for a Dutch tax resident usually amounts to demonstrating that residence has been established elsewhere, and that the normal tests for Dutch residence are not fulfilled.

Non-residents are only taxed on certain types of Netherlands source income, with income from real estate, interest on a loan secured on Dutch real estate, and income from the sale of shares being exempt in most circumstances. Offshore bank interest would not be taxable.

As from July, 2005, the Netherlands supplies information about the returns on savings paid to citizens of EU Member States, to their home States, under the EU Savings Tax Directive.

If you are resident in the Netherlands (which will be the normal situation for a native-born Dutch individual) then you are taxable on your world-wide income, of course including income from offshore bank accounts.

In the Netherlands Antilles in 2005, there were about 11 onshore banks and about 40 offshore banks, with assets amounting to about NaF80bn, comprised of Consolidated International Banks (normally controlled by the world top 1,000 banks, and supervised through their parent company), and Non-consolidated International Banks (internal company banks, in effect). The central bank (Bank of the Netherlands Antilles, or BNA) is the supervisory authority.

Only offshore banks are exempt from exchange controls; and only Consolidated International Banks will accept deposits from individuals. A number of them offer a normal range of banking services as well tax planning and asset management.

There is no legislation on banking secrecy as such, although breaches of a confidential relationship can be the subject of prosecutions under the Criminal Code.

Non-residents are only taxed on certain types of NA source income. There are no withholding taxes in the NA on interest, dividends, royalties or compensation for personal services paid to non-residents. The Netherlands Antilles have a double taxation agreement in place with the Netherlands, but it won't be needed by an individual receiving bank interest from the NA.

As from July, 2005, the Netherlands Antilles supplies information about the returns on savings paid to citizens of EU Member States, to their home States, under the EU Savings Tax Directive.

 

Due to the concerns of the Central Bank of Aruba, namely that they did not feel that prior to the enactment of the State Ordinance on the Supervision of the Credit System there were the tools available to regulate banks sufficiently closely, there have traditionally been very few offshore banks in Aruba (only two, currently). These are under the supervision of the Central Bank. The range of banking and asset management services is therefore somewhat limited at present.

Non-residents are taxed on certain types of Aruba source income, but not including bank interest. There are no withholding taxes in Aruba. The country has a double taxation agreement in place with the Netherlands, but it won't be needed by an individual receiving bank interest from Aruba.

As from July, 2005, Aruba supplies information about the returns on savings paid to citizens of EU Member States, to their home States, under the EU Savings Tax Directive.