Working in the Netherlands
Would you like more information about working in the Netherlands? Contact us.
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 Dutch BV or incorporate a Dutch branch. Please be aware this is something which should be determined based on the facts and circumstances.
In case only employees come to the Netherlands, research must be done if there is any Dutch tax obligation (see our article about an assigment 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 payslip.
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 an 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).
Start to work in the Netherlands (formalities) – BSN number (fiscal number)
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.
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 been removed). Such accommodation is usually much cheaper but requires a higher initial investment from the tenant.
Be aware that you should pay a deposit from 1-month rent up to maximum 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 are able to set you up with a move consultant in time. We provide overall management and one-to-one support for a smooth relocation.
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 healthcare insurance within 4 months after registration. You are free to choose your healthcare provider. Feel free to contact so we can recommend one.