Netherlands

Summary

The Netherlands, or Holland as it is often called, is an EU country bordered by Germany and Belgium. It has a vibrant economy in which international contractors, or freelancers, are in high demand, particularly in Amsterdam and Rotterdam. Many multi-national corporations have chosen to base their headquarters in the Netherlands and English is widely spoken.

The Dutch have actively embraced e-commerce and a broad range of skills is required. While the Dutch people themselves have no indigenous contracting culture, there is usually a good demand for short-term staff on projects and development work. The best-paid jobs are normally found in the banking and insurance sectors, but there is high demand for skilled personnel in electronics and telecommunications. The Dutch government has greatly encouraged investment in IT and technology.

Many mechanisms to operate tax use, depending on your personal circumstances, are available but usually this is processed through a payroll scheme. There are various expenses and special tax rates available if your scheme is properly managed.

Dutch Payroll

We provide a detailed and fully compliant Dutch payroll service. Our dedicated staff have specialist knowledge of the intricacies of payroll and taxation in the Netherlands.

Our Dutch Payroll services include:

  • Enrolling you with our Dutch payroll and PAYE schemes
  • Advice and assistance with contracts of employment
  • Application for Dutch social security number or a form E101
  • Application for 30% facility tax exemption available to expatriates
  • Operating monthly payroll, providing payslips, and end of year tax returns
  • Application for health and illness insurance as may be required under Dutch employment law

In addition, for non-EU nationals we can, where appropriate, give assistance with applications for work permits.

Taxation

As soon as you have lived in Holland for 183 days you are considered to be a resident for tax purposes from the date of your arrival.

Dutch tax rates are relatively high but you can apply for expatriate status through Chesterfield and obtain a tax-free allowance of 30% of your employment income. You can qualify for this for up to 10 years. Under Dutch tax law your agency and client will require proof that tax is paid. If certain conditions are met 30% of the wages may be paid as a tax-free allowance for extraterritorial expenses, without the need to submit further evidence. This allowance is meant to compensate the employee for the additional costs of the temporary stay in the Netherlands. An application should be made immediately upon commencing a contract in the Netherlands. Other expenses outside the 30% facility may also be claimed such as commuting costs.

The Netherlands has specific legislation that all foreign contract staff must operate through a registered "wage tax" company. It is extremely important that you seek professional advice before you go to Holland.

The Contract Market

The majority of contract jobs are based in or around Amsterdam, the financial capital of Holland. The Dutch have actively embraced e-commerce and a broad range of skills are required.

While the Dutch people themselves have no indigenous contracting culture, there is usually a good demand for short-term staff on projects and development work. The best paid jobs are normally found in the banking and insurance sectors, but there is high demand for skilled personnel in electronics and telecommunications. The Dutch government has greatly encouraged investment in IT and technology.

Dutch is the spoken language in the workplace; however, many multinational companies use English as their business language. Dutch people are happy to use English although it is a good idea to pick up and use some Dutch phrases.

As previously mentioned, in the Netherlands your agency and client will require that you operate via a registered scheme and our contractor managers can advise you on the best route for you. Our mission is to ensure that all our contractors are paid as quickly as possible and our hassle free approach to business and our innovate use of the latest technology frees up your time and saves you money.

We tailor our structures to suit your needs and because of this our contractors can get the most appropriate and tax efficient solution for their business, so you can receive the most out of the money you earn.

Relocating to The Netherlands

There is a well organised rental market in Holland. Prices for apartments in Amsterdam start at around Euro 1,100 a month and there is a wide variety of accommodation types available - including homeboats. In practice, many expatriates deal with letting agents who charge in the region of one months’ rent as commission. All residents in the Netherlands must register their residence with the authorities (this also applies to Dutch citizens).

The public transport system in the Netherlands is good. Commuting to work by car in Holland can be problematic and many Dutch people will cycle to work if they live a short distance away. EU nationals do not require a visa to enter Holland. They may enter as a tourist but change their status to that of resident once they have found work and accommodation.

A big attraction for many contractors is the vibrant nightlife in Holland. Amsterdam in particular boasts a diverse range pubs and clubs and is a very cosmopolitan city. There are also many cultural offerings for those with more refined tastes.

Traveling to The Netherlands

The Netherlands is accessible by air, land and sea. One of the Netherlands key advantages in the view of many contractors is its proximity and copious travel links with the UK. The rail journey from London (St. Pancras ) to Amsterdam via Brussels takes about 5 hours, with regular departures. There are regular trains from Amsterdam to all major European destinations, including sleeper cars for long journeys.

The key Airports of Amsterdam Schiphol and Eindhoven provide speedy links to all key UK airports. Schiphol is also one of Europe’s key intercontinental flight hubs, meaning that long–haul flights are frequent and varied. Airlines operating between the Netherlands and the UK include KLM, Britsh Airways and Easy Jet.

There are ports in Hook of Holland (Near the Hague), Rotterdam and Amsterdam for those who would rather sail.