NPO Radio 1: More and More Dutch Citizens Want to Renounce Their U.S. Citizenship

The number of Dutch nationals seeking to renounce their U.S. citizenship is on the rise. What often starts as a seemingly minor detail—being born in the U.S. or having an American parent—turns out to be a financial and legal burden for many. In a segment on NPO Radio 1, Daan Durlacher of Americans Overseas and former U.S. citizen Ineke Nieman discussed the often-hidden consequences of U.S. citizenship.

“I Thought I Wasn’t American Anymore”

Ineke Nieman was born in the United States but grew up in the Netherlands. She had held a Dutch passport for years and assumed her U.S. citizenship was no longer valid. “Then my bank suddenly asked about an American tax number. I thought, that can’t apply to me – right?”

But it did. Under the U.S. tax system, all American citizens -regardless of where they live – are required to file annual tax returns. Even if they have no income in the U.S. This so-called citizenship-based taxation is unique in the world and leads to confusion and frustration.

Banks Demand U.S. Tax Information

As Nieman found out, the issue often starts with the bank. Since the introduction of FATCA (Foreign Account Tax Compliance Act), Dutch banks are required to check if their clients may be tax liable in the U.S. Anyone born in the U.S. is flagged as a potential risk and asked to provide a Social Security Number and copies of their U.S. tax returns. Failure to do so can result in frozen or closed bank accounts.

Daan Durlacher, co-founder of Americans Overseas, sees this happen daily. “The banks often know more about you than you do yourself. People are suddenly confronted with their U.S. citizenship—and the obligations that come with it.”

Double Burdens and Double Stress

While there are tax treaties between the Netherlands and the U.S. to prevent double taxation, the systems don’t always align. For example, the Netherlands taxes savings based on account balances, while the U.S. taxes earned interest. The result: dual tax filings, high costs for tax advisors, and sometimes even double taxation.

Renouncing U.S. citizenship isn’t a simple administrative task either. As Nieman explains, you must prove that you genuinely live outside the United States and have built your life elsewhere. “I had to collect old school reports, vaccination records, and rental contracts.”

A Structural Solution?

There may be light at the end of the tunnel. For the first time, citizenship-based taxation has become a topic in the U.S. presidential campaign. Durlacher says, “It’s finally on the political agenda. But promises aren’t policies. Until that changes, we’ll continue fighting—in the Netherlands, across Europe, and in the U.S.—for a fair solution.”

For anyone unsure of their status, Durlacher advises: “Don’t wait until your bank comes knocking. Get informed. Americans Overseas helps thousands of people each year with advice, tax returns, and the process of renouncing citizenship. This system may be exceptional—but you’re not alone.”

Get informed at Americans Overseas

We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother.

When we heard about the US tax system for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.

That’s why we started this initiative to help people from all over the world by providing proper information about the US tax system to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your American tax obligations.

Contact us for more information

Source: NPO Radio 1: More and More Dutch Citizens Want to Renounce Their U.S. Citizenship