"We live by the square."
Translation:Wij wonen bij het plein.
Would "Wij wonen dichtbij het plein" be correct here as well, or is there a nuance that I'm missing?
I think it does, at least right now I can't think of a situation where door means something else. But your Dutch sentence doesn't make any sense, since one cannot physically live or be situated door een plein. Op het plein staan is possible, but the pavement would need to turn into quicksand to make it possible to go through the square.