A guide to contracting in the Netherlands

guide to contracting in the Netherlands - Amsterdam

3rd August 2018

The Netherlands is renowned for its beautiful landscape of windmills, tulip fields and canals, and its relative flatness means that it is a hugely popular destination for scenery-loving cyclists. It is also home to the Van Gogh museum and an array of globally prized works of art. And, for those who prefer a faster pace, there’s no doubt that its capital, Amsterdam, is one of the top destinations in the world for night life.

Wage and employment growth heightens appeal

The Netherlands is not just a great place to unwind, though – the country also has lots to offer contractors. It is the Eurozone’s fifth-largest economy, with GDP growth projected to remain robust in the near future and wage growth expected as a result. In line with this positivity, businesses in the country are hungry for skilled professionals to support growth, with more than half of job openings requiring highly-qualified individuals. Employment growth is also being driven by the professional, energy supply and financial services sectors, meaning that there are ample opportunities for contingent workers in these areas.

The legal bit

If you are considering contracting in this European country, there are a few key things to be aware of first as overseas workers are subject to a number of complex rules. Citizens of any EU/EEA countries and Switzerland aren’t required to obtain a residence permit to stay in the country, as long as the stay is based on the EC treaty. However, providing your passport or ID document from the country of which you are a citizen is enough evidence for the authorities.

It is also important to note that if you plan to stay in the destination for more than four months, you’ll need to register with the personal records database (BRP) at the civic register of the city hall where you’ll live. If your stay will be under four months, you’ll need to go to one of 19 locations in the country that has registration facilities for non-residents (RNI) instead. In either case, you’ll need to take your valid passport or ID card. Note too, that if you’re going to stay for over four months, you’ll also need a copy of your rental contract.

Once registered, you’ll receive your Dutch social security number, called the BSN. You can’t receive your wages without it and it will also be used for your healthcare insurance.

Every expatriate worker should also be aware that, while any income you receive will be subject to Dutch personal income tax, under certain criteria you can obtain a ruling which reduces your taxable salary by up to 30%. This allowance is designed to cover a majority of extraterritorial expenses and lasts eight years. To benefit from this, you must be approved by the specific Dutch authority responsible for this area.

Of course, the best way to remove the risk and administrative burden of remaining fully compliant when contracting in The Netherlands is to get on-board with an expert such as 6CATS. Contact the team today to find out how we can help you.


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