MONTCLARE
CAPITAL PARTNERS
Our client is rarely the one leaving the Netherlands. It is the one arriving in Europe, and the country being left tends to present a bill on the way out, on gains nobody has realised. That moment, the exit, is when the arrival structure has to already exist. Almost everything that can be done about an exit charge is done before the departure date, and very little of it afterwards.
Reading what the country of departure charges, on which assets, and on what date the charge is fixed.
Sequencing the move, the sale and the incorporation so each step falls on the intended side of the exit date.
Designing and incorporating the Dutch holding before the fiscal border is crossed, not after.
Working alongside the client's own adviser in the country of origin, who keeps the filing and the local position.
Documenting the value of shares and portfolio as at the departure date, while the evidence is still contemporaneous.
Tracking the instalment, deferral and security obligations that several regimes leave running long after arrival.
Most advisers work one side of the border. The adviser in the country of origin handles the departure, and somebody else is found later to handle the arrival. By then the date has passed. Montclare reads the exit position and builds the European structure as a single sequence, in coordination with the local adviser, whose role it does not replace.
This page is informational and does not constitute tax advice. Each engagement is subject to scope and applicable regulation.
A German entrepreneur holding a majority stake in an operating company intended to move his tax residence to the Netherlands. Under German law the move itself is a taxable event on the latent gain in that shareholding, and the charge falls whether or not anything is sold.
We read the exit position against the bilateral treaty, set the sequence of the transaction against the date the residence would change, and had the Dutch holding incorporated, funded and governed before the border was crossed rather than after.
The move proceeded without contingencies. The German charge was settled under the instalment regime the statute provides, and the Dutch structure was already operating on the day the founder arrived, which is the part that cannot be arranged afterwards.
A country by country series on what the state being left actually charges, and on the decisions that have to be taken before the departure date rather than after it.