This is one of the real misconceptions of USA taxation. The US has a tax treaty with the Netherlands. Accordingly, as a US citizen you will pay two taxes. Consider the following fiction. Remember the Netherlands has higher taxes than the USA.Tax on worldwide income to the US $50,000.Tax on income to the Netherlands $75,000.So you file both sets of taxes. Youu2019d pay the Netherlands tax of $75,000 which gives you a credit of $75,000 to offset the US tax of $50,000 and thus you pay NOTHING to the US.Now this is an ideal world situation and it NEVER works out this nicely and is obviously much more complex - however based on my experience the real world results to not vary drastically from this.NOTE that you do have to file 2 tax returns. This is the usual situation that I find with ex pats from the USA so getting all upset about FILING two taxes is really a moot point.