[bgroins]

Amsterdam. As an American (or Japanese) citizen you can get a residency card easily here if you start a business under the DAFT. You can also get a 30% tax break for up to 8 years as a highly skilled migrant, which is good because the highest effective tax rate here is 52%. Aside from those things, the city is very clean, extremely safe, cheap groceries, tons of green space, and extremely easy to navigate by bike or public transport. My wife and I came from LA where none of those things are true. Going out to eat is also about half as much as LA, and there is a lot of restaurant variety due to the multicultural nature of the city. Cheap insurance for individuals with a highly rated health care system. Downsides are the weather can be unpredictable, and definitely cold and gloomy in the winter. Also high rents in some popular areas, but that's probably true for most places. Overall though, we're extremely happy with our choice and considering staying long term. Also speaking only English is no problem.

[camkego]

Thank you for pointing out DAFT, that is pretty interesting. One question about starting a foreign corporation, Do the penalties and fees of the IRS regulations relating to US citizens owning a foreign corp. concern or worry you? For example, a $10,000 a month penalty for failing to report ownership interest in a foreign corporation. (Form 5471) This is the one thing that really stops me from considering owning a foreign corp.

[bgroins]

I'm not a tax expert nor purport to be one, but I have a good US CPA and Dutch tax person and leave it in their hands.

[janpieterz]

Just an FYI, if you want to go through the effort of setting up a BV instead of a ZZP one, you get effective tax brackets of 40% after your first 44,000. Your BV will be profit-taxed 20% (I think) and then another 25% dividends (or the other way around). Set it up beginning this year with an accountant, if you're in the effective 52% bracket you might want to check (no idea how it works with the 30% break though!)

[silverlight]

Even if you get a tax break in Amsterdam wouldn't you just end up paying that tax to the US? My understanding is basically your US tax still applies unless you are posting more in foreign tax than you would in US tax.

[alemhnan]

the 30% tax break holds also if you are a one man company (zzp) ?

[tijs]

Yes. All you need is a business registration and a bank account with €5k in it. Both easy to setup in a week or two. https://en.m.wikipedia.org/wiki/DAFT

[owenwil]

No, this isn't correct. If you set up a ZZP you lose it forever, however if you create a BV and hire yourself into it, you can have it. Source: I did this.

[tijs]

Hmm, your right. Sorry about the mis information. I was confusing it with the knowledge worker status but that would only work if a company hires you and sponsors your application. So nothing to do with DAFT. Even as 'zzp' you still get a lot of tax benefits though. Especially the first few years. But if that does indeed invalidate your claim for the 30% ruling your method seems like the way to go.

[alemhnan]

Ah that's very interesting. Do you mind to have a chat? I'm in Netherlands and might be interested in doing that.

[adrianh]

Hey, I'm also an American here in Amsterdam (I posted separately about it in this thread). Let me know if you'd like to meet up! Contact info at holovaty.com.