Anyone here claimed the 30% expat tax allowance in Holland?

**WindyAnna** · 27 February 2007, 13:46

My advice to you would be do not go and work in the Netherlands unless the rate is at least 40% better than in the UK. The 30% is only part of it, there are other hidden taxes which means you will still be paying an awful lot in deductions. My husband works over there, we have the same day rate, he has the 30% ruling, I bring in about 40% per month than he does.

The SOFI office over there will speak to you in English and send you all the forms you need. Your will have to send your CV and your employer will have to write with details of your role and why you have been employed.

You will need a permanent Dutch address, hotel is no good so if you aren't planning on renting you will need a tame person to let you use their address.

HTH

Windy

**newguy11** · 3 June 2007, 17:23

Take Home Greater in UK or Holland?

I'm thinking of contracting in Holland too, I've looked at the estimate given based on social security (employer & employees), wage tax & NI and management company cost. It comes to, £5k, a little more than esitmates for working in the UK given by the contractor calculators.

For £50 per hour the caluclators come to Your current net income per month is £4,790. This is 69% of your gross revenue. If I was under IR35 it comes to £3,787. Am I missing something here?

**DS23** · 4 June 2007, 08:03

[QUOTE=mcquiggd]Just seeking any advice from those that have been through the process of claiming the 30% tax allowance for expats working in Holland......
QUOTE]

is the end client putting you through their payroll?

**newguy11** · 5 June 2007, 07:20

A Dutch management company currently as suggested by the agency will put me through their payroll.

**Turion** · 5 June 2007, 08:38

Ltd Co working is the best option by miles regarding administration, tax, expense claims etc and you avoid the nightmare Dutch tax system. I know it I've done it both ways. This is legal if you are not resident there for over 183 days in a year.

The Dutch 30% tax rule is meant for permies on long term secondment, living there permanently for more than 6 months to mitigate the costs involved in relocation, but has been hijacked by agencies and some clients and even promoted as a 'tax benefit' This 'benefit' will be very expensive for you and is not guarenteed as it can be applied for ONLY by your 'employer'. A management co will charge 300-500 euros/month. You will still pay a lot of tax, and social charges for sickness, unemployment and pension!! And it gets worse! -you cannot claim ANY expenses for travel/hotel etc. With the 30% rule expect to net 65%, without 55% (and you also have to fund your expenses from this residue income)

My advice is only deal with agencies that allow Ltd co, or off-shore solutions. Many will, otherwise walk away.

Hope that helps

**DS23** · 5 June 2007, 11:28

Originally posted by Turion

My advice is only deal with agencies that allow Ltd co, or off-shore solutions. Many will, otherwise walk away.

Hope that helps

or charge a monster of an (all in) daily rate...

**newguy11** · 5 June 2007, 13:27

Thanks for the input. It's a 1yr contract, so I can't do the Ltd Co. because that's longer than 183 days. (Unless I do it in two 6 month stints? Is this legal.)

Is it still possible/legal to approach things from an offshore solution in Holland for longer term contracts?

**DS23** · 5 June 2007, 14:05

another route that can work (assuming the client is "global" enough) is to have your contract with the uk company of the client who then invoice the dutch one for your services.

**newguy11** · 5 June 2007, 14:21

Thanks all. I've got two approaches then, the offshore route and the global company route. It'll give both a try.

Anyone here claimed the 30% expat tax allowance in Holland?