Limited or unlimited?
I am Dutch, 66 years old, and have been registered as a commercial real estate dealer with the tax office in Korbach for more than 10 years. I buy, renovate, and sell old houses from foreclosure auctions as a hobby, but my earnings have been very limited over time - a few thousand in profit, a few thousand in losses. I have always done my own accounting and have been limited tax liable. In the Netherlands, I receive an annual pension of 15,000.
However, in 2017, I sold 2 houses with a profit of 116,000 after deducting costs. Now the tax office suddenly wants to tax me as an unlimited tax resident, claiming that my actual place of residence is my farmhouse in Lichtenfels. I have objected to this, as I have never been registered there as a resident, I am insured in the Netherlands, and I actually live with my wife in Zutphen, the Netherlands. The tax office now says that I must report my German income to the Dutch Tax Administration. I have never done this (due to minimal results and double taxation) - I was unaware of this requirement.
The questions now are:
Is it fair for the tax office to suddenly want to tax me as an unlimited resident? And will it be beneficial for me to apply to continue being taxed as a limited resident? Because I thought I would be paying a 25% tax, but being taxed as unlimited seems like it would result in much more. Approximately how much should I expect to pay in both scenarios?
