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I am a student in Netherlands but I have decided not pursue my studies. So, I returned back to my home country. After consulting the IND website it seems that I have to notify IND about my leaving before I leave the country, return the residence permit and deregister my self with local authorities. Otherwise, there will be a penalty.

If I follow the above procedures, I have to return back to Netherlands and do everything which seems unrealistic.

What should I do, now, to avoid any complication in the future?

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    Have you checked with the embassy of the Netherlands? – Burhan Khalid Apr 22 '17 at 16:05
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You can send the residence permit to the IND by mail, along with IND Form #7597 that says you're changing your status. You should do this within 4 weeks.

As for local de-registration, most municipalities in the Netherlands let you do this online. Check the website of your local gemeente, and if you don't see that option, contact the gemeente by phone or email.

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When you write IND the official written notification (see @JeffG's answer) , add a note - on that form perhaps, in the empty area - saying you've destroyed your residence permit by cutting it up into small pieces.

I am absolutely certain - although I have not done this myself - that this will satisfy them. And even if it doesn't - what are they going to do? It's not as though you can put it back together again.

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