Dutch court: FATCA data of Accidental Americans in the Netherlands may still be shared with the IRS

The District Court of Gelderland has ruled that the Dutch Tax Administration may continue sharing financial data of so-called Accidental Americans with the US tax authority, the IRS. According to the court, this data transfer does not violate the GDPR.

The ruling (ECLI:NL:RBGEL:2025:5881) confirms that the Netherlands must continue exchanging financial data with the United States under the rules of the Foreign Account Tax Compliance Act (FATCA).

For Dutch residents with US nationality, this means that the current practice of FATCA data sharing will continue for now.

What are Accidental Americans?

The case concerns Dutch residents who are considered Accidental Americans. These are people who, for example:

• were born in the United States but left at a very young age
• or acquired US nationality through an American parent
• and have built most of their lives outside the United States.

Under US law, a person can automatically acquire US citizenship by birth in the United States, and in some cases through a US parent. As a result, they may fall under US tax rules even if they have never lived or worked in the United States.

FATCA requires banks worldwide to report data

The data exchange follows from FATCA, a US law that requires financial institutions around the world to report accounts held by people with US nationality.

To implement this, the Netherlands and the United States signed a bilateral agreement: the Dutch-US FATCA agreement (NL IGA). This agreement was approved by the Dutch parliament in 2015.

Under this system:

• Dutch banks report certain data to the Dutch Tax Administration
• the Dutch Tax Administration then transfers that data to the IRS.

Court rejects GDPR-based objections

The claimants asked the Dutch Minister of Finance to restrict the sharing of their data based on:

• the right to restriction of processing (Article 18 GDPR)
• the right to object (Article 21 GDPR).

The court rejected these arguments.

According to the court, the FATCA agreement creates a legal obligation under Dutch law. This means that:

• the data transfer is necessary in order to comply with a legal obligation
• the right to restriction and the right to object do not apply in this situation.

The court therefore declared the appeals unfounded.

Court acknowledges the impact on those involved

In its decision, the court did acknowledge the position of the individuals involved. It noted that having dual nationality can lead to negative tax and administrative consequences under US law.

At the same time, the court emphasized that it is bound by the current legal framework and by the international agreements between the Netherlands and the United States.

Why this differs from Belgium

The claimants also referred to a decision by the Belgian Data Protection Authority, which had criticized FATCA-related data transfers.

However, the Dutch court held that:

• the Belgian decision is not binding in the Netherlands
• the Dutch Data Protection Authority has taken a different position
• and legal proceedings in Belgium are still ongoing.

For that reason, the Belgian case did not change the court’s conclusion.

What does this mean for Americans in the Netherlands?

For Americans and Accidental Americans living in the Netherlands, this ruling confirms that:

• Dutch banks will continue reporting data under FATCA
• the Dutch Tax Administration may continue sharing that data with the IRS
• US tax obligations may therefore remain relevant.

For many people, this means it is wise to review their US tax position and, where necessary, take steps to become compliant.

Possible next steps for Accidental Americans

Depending on the individual situation, there may be several possible options:

Streamlined Procedure

Many Accidental Americans use this procedure to catch up on overdue US tax returns without penalties.

Ongoing US tax compliance

Some choose to remain compliant with annual US tax filing and reporting obligations.

Renouncing US citizenship

In some cases, people decide to give up their US nationality and apply for a Certificate of Loss of Nationality (CLN).

Get Informed with Americans Overseas

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

When we first learned about the U.S.–Netherlands tax treaty around 2013, we felt disbelief (“this can’t be true”), anger (“how can they do this?”), fear (“will I get fined or have problems?”), and panic (“what should I do?”).

Unfortunately, it is true that there is a U.S. tax obligation for Dutch citizens who acquired American nationality by birth. There was no information from local authorities, the U.S. consulate referred us to the IRS, and the IRS itself was impenetrable.

That is why we started this initiative: to help others with reliable information, to prevent unnecessary panic, and to offer free, no‑obligation assistance. When needed, we can connect you with a network of affordable professionals (accountants) who can help you meet your U.S. tax obligations.

Contact us for more information

Source

The full court ruling can be found here:

ECLI:NL:RBGEL:2025:5881