Undeclared money in a foreign account is not permitted and monitoring this will continue to be a priority for the Tax Authorities in 2022. Due to the disappearance of banking secrecy in the world and the expiration of penalty-free use of the voluntary disclosure scheme, many people with undeclared money are faced with the choice of what to do with their savings abroad. Compare that interest rate with the highest current savings interest rate in our country. Saving is also possible in our country at a good savings interest rate, if you keep an eye on the current savings interest rate.
Black money abroad
- Black money and tax avoidance are allowed in the Netherlands
- Avoiding the trust and taxes
- The voluntary disclosure scheme and black money
- Saving in Belgium and Germany
- Highest savings interest rate in the Netherlands or investing
- Tax advice black money
- What can you do with black money in 2022?
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Black money and tax avoidance are allowed in the Netherlands
There is a big difference between tax avoidance and tax evasion. Avoiding taxes is allowed, evading taxes is not allowed. You can avoid taxes through all kinds of smart tax constructions, such as through a trust. When we talk about evasion we talk about black money.
Avoiding the trust and taxes
The trust is a popular form of tax avoidance. Think of Princess Christina with her trusts on Guernsey, a beautiful Channel Island and famous for its tax climate. A trust is simply a convenient construction in which you, as the settlor of the trust, transfer your hidden assets to a manager. You then agree with the manager how he should manage your assets. The trust is a well-known solution for people with quite a bit of money, even though the legislation has become stricter here.
The voluntary disclosure scheme and black money
The voluntary disclosure scheme for black money makes it possible for you to voluntarily report to the Tax Authorities without having to pay an additional fine. You will then pay the overdue taxes, but no additional fine. The additional fine on black money has been significantly increased. Some calculation examples for this significantly higher fine for black money clarify this. The voluntary disclosure scheme for black money abroad expired in 2020.
Saving in Belgium and Germany
Quite a few Dutch people save in neighboring countries. For example, Belgium is popular because of the banking secrecy there. But now that banking secrecy has collapsed in many places, many Dutch people are withdrawing their money from their savings accounts in Germany and Belgium. Until 2010, your money was reasonably safe in Belgium. You paid a withholding tax and you’re done. But now that banking secrecy in Belgium is being overhauled, your Belgian assets can be classified as black money as soon as the Belgian banks pass on their information to our tax authorities. This also applies to Luxembourg and a number of other countries.
Highest savings interest rate in the Netherlands or investing
The question is what to do with your money raised from abroad. For example, you could place your money in the Netherlands at the highest savings interest rate. As long as the ECB keeps interest rates low, savings rates will not be high either. A savings deposit earns you more savings interest. Investing is of course also possible, but it entails a higher risk.
Tax advice black money
A second option is to obtain good tax advice. There are countless ways to avoid taxes. A good advisor can indicate the routes for you. Moreover, there are still plenty of tax havens left in the world where your money is still welcome.
What can you do with black money in 2022?
So if you have money in a foreign account, it is best to count your buttons:
- Calculate how much it will cost you in back taxes if you file now.
- Get tax advice about tax-friendly constructions and don’t wait long.
It will be a turn and a return to the Netherlands. It means taking the money away and opting for a different tax structure. But whatever you do, the treasury is empty in many countries and the hunt for black money only seems to be intensifying. Until July 1, 2014, there was a temporary amnesty scheme in the Netherlands, actually a form of black money laundering with the help of the Tax Authorities, but that is a thing of the past. Anyone caught in 2022 risks a high fine.
- Banks & offshore banking and tax haven abroad