[armando]

Hello Andy,
As a US citizen you are taxed on your worldwide income. Each person can get an $80,000 annual exemption on income earned outside the US on the income taxes. Over that then you have to pay. Any taxes you pay in Holland can be also credited.

Taxes that might be due on income over $80,000 can be reduced through the normal deductions too. So you should be able to eliminate your US taxes through proper structuring of the agreement.

What you call the housing allowance doesn't matter so much, since no matter what you call it will count as income. Although a certain portion can be eliminated from your income over and above the $80,000 exclusion.

The IRS Publication for overseas filers is Publication 54.
See you soon