Netherlands_Solution

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Expatriate Tax Regime

The Netherlands has an expatriate tax regime which exempts 30% of income from Dutch Wages Tax and Social Security.
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Model Agreement

Following the abolition of VAR, those who wish to operate independently as self-employed or Limited company contractors must evidence independence from the client. We strongly advise that these individuals enter into a Model Agreement approved by the Dutch tax authorities.
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Pension Contributions

From 1st of January 2021, employed individuals will need to contribute 14.6% of their emoluments to a pension scheme.

Employed Solution

Other Deductions 32%
Management Fee 5%
Retained Income 63%

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Open to all nationals and those who want continuous employment. This solution will appeal to non-EU citizens or British nationals after 01/01/2021, who will need a work permit to work. As shown in the chart, an employed individual should be able to retain approx. 63% of their emoluments.
*The above results are based on 2020 tax calculations prior to the implementation of the 14.6% pension contribution.

Limited Company / PSC Solution

Other Deductions 19%
Fixed Costs 6%
Retained Income 75%

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Where there is a degree of independence between the contractor and the client, then using a limited company is an attractive option for the contractor. This solution is for EU nationals or those having the right to work. An individual working through their own PSC may enjoy retention of approximately 75%.