Contracting in the Netherlands

With just a few clicks, you can calculate your take-home pay in the Netherlands and choose the optimal solution to get the most out of your contract. Use the app below to calculate your possible net retention in the Netherlands.

Employment

This is a standard form of employment – you officially work for a company who pays you a monthly salary.

Pros:

• Enrollment in the social security system, which includes a pension plan, paid time off and sick leave.
• Stable monthly paycheck.
• Income tax is deducted from your salary, so you do not need to worry about calculating how much you have to pay.

Cons:

• Lower retention rate compared to other solutions due to social security payments.
• More and more companies are looking towards independent contractors rather than employees, so it could be more difficult to find such employment, especially as a foreigner.
• Less flexibility – you do not get to choose the projects that you can work on, you must work on the tasks assigned to you by your employer.
• Formal working hours – you may have to work “9-5”, as determined by your employment contract, rather than being able to determine your own working hours.

Self-Employment

This type of employment means that you are a freelancer – a company pays you to do a specific job, and you get remunerated, but you are not an official employee. You can either charge by the hour, or offer one invoice after you complete the project you were hired for.

Pros:

• Possibility of gaining a higher rate of pay.
• Freedom to choose projects that interest you.
• Freedom to choose your own working schedule.
• Can deduct your expenses from any sales tax you have to pay.
• If you just started your business and have a low turnover, you could be exempt from filing a VAT return.

Cons:

• No social security benefits.
• You will need to sort out payments of income tax and social contributions yourself, or you could consider engaging a payroll company like Access Financial.
• There can be a fine line between self-employment and regular employment. If, for example, you end up doing too much work exclusively for a specific company, you could be classified by an audit as falsely self-employed, which can result in very hefty fines and the possibility of some legal action against you/your client.

Limited Company

At Access Financial we specialise in enabling contractors/freelancers from EU and EFTA Member States to utilise their Limited Company for contracting in the Netherlands.

How it works?

If you have an existing Limited Company you may be able to utilise this (depending upon the circumstances).
Your Limited company will pay you a reasonable and justifiable salary for your services while working on your contract in the Netherlands. Any remaining profits, after tax, may be distributed to the shareholder(s) by way of dividend.

Pros:

• The process is quick and easy and can be arranged within 24 hours.
• Possibility of gaining a higher rate of pay.
• Reduction of income tax by calculating justified business-related expenses
• All income and losses are attributed to the company as opposed to you personally.

Cons:

• Limited Company solution is suitable only for EU citizens and EFTA members.
• Fees for incorporation (in case you don’t already have a registered Limited Company)
• As a Director/Owner of your own limited company, you have some significant responsibilities in regard to the company activities and reporting obligations. To navigate such responsibilities, it is best advised to engage professional advisors and accountants, such as Access Financial and our sister company Access Tax and Accounting Limited.

Regular Paid Work (Employee)

This is the most standard work visa if you want to live and work in the Netherlands for a single employer.

Requirements:

• Employment contract with a company in the Netherlands
• Earn at least the minimum wage if you are over 23
• If you are a foreign national, the employer must prove that the work could not be filled by a Dutch or other EU/EAA national.

Highly-skilled Migrant

This type of visa is for individuals who fall under a very specific criteria; foreign workers who will make a contribution to the Dutch knowledge-based economy.

Requirements:

• Employment contract with a company or research institute in the Netherlands
• Earn a minimum monthly wage of 3,299 EUR (under 30) or 4,500 EUR (over 30).
• Employer must be a recognized sponsor of the IND

EU Blue Card

This is a visa for foreign academics seeking to work in the Netherlands.

Requirements:

• Employment contract that is valid for at least 12 months
• Minimal monthly wage of 5,200 EUR
• A higher education diploma that has been evaluated by Nuffic

Self-Employment Work Visa

This is a visa for self-employed individuals, freelancers and entrepreneurs, which includes a residence permit. This has the strictest requirements of all the types of visas.

You need to prove that your services can bring value to the Dutch economy. This is done with a point-based system by the RVO (Netherlands Enterprise Agency), the requirements of which include things like experience, business plans, innovation, education and employment opportunities.

In general, for most foreign workers, you will need either a work permit (TWV), or a combined work and residence permit (GVVA). In addition, if you are not a resident of a Schengen country, you need a provisional residence permit with which you can initially enter the country.

EU, EAA, Switzerland

Nationals of the following countries only need a valid password or ID card – no work or residence permits required.

Other foreign nationals

If your employment will last less than 3 months, you only need a work permit. For longer times, you need to have a combined work and residence permit (GWWA) – this is a residence permit with additional permission to work for a specified employer.

As an Employer of Record, we conclude an agreement with you and your client. We become your legal employer while your client maintains control over your work relationship, ethics, tasks, and daily responsibilities.

Why is this needed?

Not all companies have registered legal entities in the countries where they need employees. Moreover, not all companies want to bother with payroll, work permits, taxes, social security, and in general paperwork when employing workers. That’s why it’s more profitable and convenient for them to turn to an EOR provider (such as Access Financial) who already has local experience and can take on all the worries associated with hiring employees and be responsible for their paperwork and compliance.

Here are just some of the services we offer in the Netherlands:

• Assistance in obtaining the necessary visas/work permits for employees from third countries.
• Registering employees with the tax and social security office.
• Providing consultations on the Netherlands labour regulation & benefits.
• Setting up the Payroll system compliantly.
• Submitting wage tax returns and national insurance forms.
• Keeping our clients up-to-date and compliant with changes in the Netherlands regulations.

We provide a full set of services in the Netherlands, allowing corporate clients, recruitment agencies and professional contractors to operate in an optimal manner, while ensuring that all local compliance obligations are taken care of.

Access Financial offers the following services in the Netherlands:

– Contract Management

– Outsourced Payroll

– Employer of Record (EOR)

– Limited Company Solution

– Work Permits & Immigration Assistance