In the Netherlands, it is relatively easy to become a freelancer, which is the simplest way to start your own business. It is known as a ZZP’er (zelfstandige zonder personeel), which translates directly to an independent without staff. ZZP’ers are not committed to any single long-term client or employer. The most common business structure for a freelancer’s enterprise in the Netherlands is an eenmanszaak (one-person business).
There are several benefits to becoming a freelancer. For instance, you can choose your projects and partners and set your hours. As an employee, you typically don’t have that freedom. In addition, there are various options for reducing taxes, which include a 30% ruling (we will discuss this in more detail a bit later), ondernemersaftrek (entrepreneurs’ deduction), deduction of business expenses/work-related costs, VAT (BTW) deductions and so on. The new tax regime only applies to employed people.
However, there are some downsides to freelancing. For example, you won’t get bonuses, sick leave, or vacation days, and you’ll have to arrange your pension. As a ZZP’er, you’ll also be responsible for calculating and filing your income taxes, VAT, and social security contributions. That is why a good accountant is essential. Here are some of the most important aspects to consider if you’re thinking about becoming a ZZP’er in the Netherlands:
Residence permit
To start the process, you must have a valid residence permit to live and work in the Netherlands.
There are several ways to obtain a Dutch residence permit, such as:
– The Dutch-American Friendship Treaty
– Dutch-Japanese Trade Treaty (DIT)
– Being an EU, EEU or Swiss citizen
– The Dutch startup visa
The Dutch-American Friendship Treaty (DAFT) and Dutch-Japanese Trade Treaty (DIT) are treaties that allow citizens of the United States of America (US) and Japan to establish and manage businesses in the Netherlands without having to meet the same strict criteria as other applicants. However, they still need to demonstrate that they have the necessary skills and experience to run a successful business and that their business will benefit the Dutch economy.
If you are a non-EU/EEA or Swiss citizen wishing to work as a self-employed person in the Netherlands, you must obtain permission to establish your business there. Additionally, your activity should contribute significantly to Dutch interests.
The Immigration and Naturalisation Service (IND) of the Netherlands evaluates residence permit applications and other immigration matters.
This evaluation employs a scoring system that considers the following:
- Personal Experience: The applicant’s relevant skills and experience in their proposed business area.
- Business Plan: The practicality and sustainability of the applicant’s business plan.
- Value to the Netherlands: The potential positive impact of the applicant’s business on the Dutch economy.
Register your business at the KvK
Registering your new business at the Dutch Chamber of Commerce (Kamer van Koophandel or KvK) is the first administrative step to becoming a freelancer. You can do this by filling out a form on the KvK website. In the video’s description, we will add all the necessary links to official resources so you don’t have to search for them. However, you must attend an in-person meeting to finalise the registration process. The cost of registration is 80 euros and 10 cents.
Being a freelancer or ZZP’er has no specific legal form, so you must choose a legal form for your business. The kind you choose depends on your juridical and financial preferences.
Freelancers with a high turnover or investors may opt for a BV (limited company). However, it requires more financial and administrative resources. Freelancers who work together might choose a VOF (general partnership).
And then there’s the eenmanszaak (sole trader or one-person business), the most common legal structure freelancers use in the Netherlands.
While registering with the KvK, you should also ask to register with the Belastingdienst (Dutch tax office), which will issue you a BTW (VAT number).
There are some instances where you will also need a licence or adhere to particular laws and regulations governing specific industries. For example, if you deal with imports and exports or work in hospitality (e.g., café, hotel, restaurant).
In addition to registration at the KVK, you must have a valid business address in the Netherlands, which can be your home address or a rented office space.
Dutch taxes and VAT for freelancers
Nearly all freelancers and self-employed professionals have to pay VAT and income tax. Depending on your legal structure, you pay income tax or vennootschapsbelasting (corporate income tax), and in the case of a BV wages tax. If your turnover stays below a certain threshold (€20,000 per year), you may apply for the small businesses tax scheme (kleineondernemersregeling or KOR) and not have to file VAT returns.
- You file a personal income tax return if you have an eenmanszaak (sole proprietorship) or VOF (general partnership).
- You file a corporate tax and wage return if you have a BV (private limited company). You obtain the wage tax number by registering with the Dutch Tax Authority.
What do you need to know about Social Insurance Contributions?
As a freelancer in the Netherlands, you can take out insurance for many risks. Most insurances are voluntary. There are, however, two types of insurance that you are obliged to have.
- National insurance: Freelancers in the Netherlands pay national insurance contributions through their income tax.
- Mandatory health insurance: Everyone living or working in the Netherlands is legally obliged to take out standard healthcare insurance.
Other types of insurance are voluntary.
30% Ruling in the Netherlands
We often receive questions from recruiting agencies and contractors about the application of the 30% Ruling in the Netherlands, so I would like to go into a bit more detail on this matter:
The 30% ruling is for employees; you cannot claim it if you’re a sole trader or in an unincorporated business. However, there is an option. If you set your business up as a separate legal entity, such as a limited company (BV), you can go on the payroll as an employee of your own company.
To apply for the 30% Ruling, you must take the following steps:
- Contact the Dutch Tax Authorities (Belastingdienst). The Belastingdienst will provide you with an application form and instructions on completing it.
- Submit the application form along with supporting documentation. Supporting documentation may include your employment contract, salary certificate, and proof of residence.
- Wait for the Belastingdienst to review your application. The Belastingdienst will then notify you of its decision.
What is changing in the Netherlands?
The Dutch government is planning to abandon the use of Model Agreements in determining self-employment status. Instead, they will enforce the WAB law by scrutinising the relationship between worker and client to satisfy themselves that this is not false self-employment. The criteria that the tax authorities will use include having more than one client, providing your tools, independence, and commercial risk.
Tax Compliance: Model agreements from the Dutch Tax Authorities (Belastingdienst) are there to meet the requirements of the Dutch Tax Code and ensure that the working relationship is a SERVICES agreement rather than an employment contract, which can save ZZPers from paying unnecessary employers’ social security contributions.
Summary
Overall, the Netherlands is a very supportive environment for freelancers. Self-employed workers have access to several benefits and resources to help them start and grow their businesses.
Access Financial provides a complete set of services in the Netherlands, allowing corporate clients, recruitment agencies, and professional contractors to operate financially rewardingly while ensuring they meet all local employment obligations.