Working in the Netherlands
Would you like more information about working in the Netherlands?
MFFA Belastingadvies | Tax Advice
Working in the Netherlands
Foreign employees who start working in the Netherlands for a company will have several questions when they arrive in the Netherlands. Not only the employees but also the employer might have questions with respect to the employment.
We have made in a nutshell some Dutch key facts in case of relocation to the Netherlands:
Working in the Netherlands – Steps Employer
If the employee and employer agree that the employee starts working in the Netherlands several actions must be taken. First must be determined if the foreign company needs to set up a Dutch BV or a branch office should be opened. Please be aware this is something which should be determined based on the facts and circumstances.
Wage tax number Netherlands
In case only employees come to the Netherlands, research must be done if there is any Dutch tax obligation (see our article about an assignment in the Netherlands). In case the Dutch tax authorities are allowed to tax the employees working in the Netherlands, a wage tax number needs to be applied at the Dutch tax authorities in Heerlen (foreign wage tax number). As a result, every month a wage tax return will be submitted, and the employees will receive a monthly pay slip.
Relocation – Employer / Employee questions:
In case foreign employees are relocated to the Netherlands, question rise up like:
- Where do I become a tax resident?
- What kind of formalities are needed?
- How much do I receive net out of my wage?
- What are my obligations?
- Where to find a house for my family?
- How to move my furniture?
- Am I obliged to have a Dutch insurance?
- Do I build up any pension?
Several of these questions we have outlined below.
We assist companies with the whole relocation process for their employees (finding house, register the employees etc).
BSN number (fiscal number)
If you start to work in the Netherlands as a foreigner, the first thing you need to apply is a BSN number at the municipality (in Dutch gemeentehuis). The BSN number is necessary so that you can be identified in the tax and social security system. If you do not have a BSN number, you cannot work here. The application must be done within 5 working days after arrival. Please bring a valid passport or identity card to the municipality.
The income you receive from the Dutch employer will be subject to Dutch personal income tax. Please note that the Dutch tax year is equal to a calendar year. The employer withholds wage tax via the payroll, which can be offset against the personal income tax. The exact personal income tax due is determined by submitting your personal income tax return. The tax return should normally be filed within 3 months after the calendar year has ended. For the year in which you moved to or from the Netherlands, you will receive an invitation from the Dutch tax authorities to file a so-called migration tax return (m-form). Please note that we will request for an extension for filing and preparing your Dutch migration tax return.
Click here for our brochure about Dutch income tax and social security.
In the Netherlands it depends by sector if the employer is obliged to participate in a pension scheme. In case it is obliged, the premiums will be then partly paid by the employer The employee, will pay the other part of the premium via payroll. The premium is deductible from the gross salary and therefore wages will not be withheld. Taxes are withheld when you receive your pension.
Housing – relocation
Searching for a house in the Netherlands can be very time-consuming. Based on your personal requirements we can select houses with our real estate agent which qualifies to your standards. When you visit the Netherlands, we schedule all the appointments with the real estate agents for you. We are able to schedule approximately 4 up to 5 viewings per day.
When you rent a house, the house is furnished, semi-furnished or unfurnished. This means:
- Fully furnished properties are provided with complete furniture, floor covering, curtains, kitchen & bathroom appliances (cooker, fridge, washing machine and tumble dryer) and often linen & towels. You just have to bring your personal belongings.
- Partly furnished properties are provided with floor covering, curtains, light fixtures and most of the kitchen and bathroom appliances. You will have to bring your own furniture or purchase new, and of course your personal belonging.
- Unfurnished properties are delivered empty with no floor covering, no curtains or any appliances (the light bulbs may even be removed). Such accommodation is usually much cheaper but requires a higher initial investment from the tenant.
Leasing a house
Be aware that you should pay a deposit from 1-month rent up to a maximum of 3-months rent when leasing a house. Also, third parties like real estate agents may charge an additional fee for their services. We have already contacted some agencies and conclude that this fee may be negotiable.
If you would like to move your furniture to the Netherlands, you should bear in mind that this requires an accurate pre-planning. In order to assist you with this matter, please inform us accordingly so we can set you up with a move consultant in time. We provide overall management and one-to-one support for a smooth relocation.
Dutch Healthcare Insurances
All Dutch residents are obliged to have a Dutch health insurance. This general health care insurance covers all regular (short-term) medical treatment. This short-term healthcare is for 50% financed by the employer, for 45% by the insured person and for 5% by the Dutch government. The Dutch healthcare insurance system is a dual-level system. This means that all primary and curative care (e.g., general practitioner and hospital) is financed from private obligatory insurance. The government determines every year what is covered by the national healthcare scheme. The long-term care for old-age persons, terminally ill, etc. is covered by social insurance funded from withheld taxes.
Private health insurance
Private insurance companies provide the general health insurance. Premiums are due on a monthly base. By law you have to pay the first € 400 of the healthcare costs yourself and the remainder will be reimbursed by the private health insurance company. Please note that children under 18 are covered for free.
Further, you can expand a general healthcare insurance with additional insurances, e.g., for the dentist or physiotherapist. Please note that the insurance company may set requirements and a person may be refused access for these additional insurance policies.
Finally, as soon as you are a Dutch resident you should have a Dutch health insurance within 4 months after registration. You are free to choose your healthcare provider. Feel free to contact so we can recommend one.
Bank account number
In order to receive your Dutch Tesla salary, you should have a Dutch bank account. A Dutch bank account avoids bank transfer charges and exchange differences. We suggest opening a bank account number at ABN AMRO. This company provides the website for internet banking also in English and you can withdraw cash in person at any ABN AMRO office in the Netherlands. We will assist with opening the bank account.
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