Contracting and taxes in Netherlands

[wattaj]

You have seen offers or you did get offers?
These rates are extremely rare in The Netherlands for IT roles. They are more likely to be in the €500 - 600 per day range, deduct the 30% tax, travel and living costs and you will find a £300 pd rate outside IR35 in your hometown has a better nett retention

Hmm... "home town" versus Amsterdam. *mulls a return to AMS*

[rawly]

Been 3 years since I did a gig in the wonderful city of Amsterdam, like to think it might be my 2nd home! But it never was ‘home’ technically back then. Do people still not apply Scale Rate? Simplifies your expenses & back then it was €210 Room rate per night, well technically 24 hours spent there.

[illusion]

Hello.

I have seen many of you have some experience in contracting and taxes in Netherlands and I hope you could help me out a little.

First of all lets skip all the cost of living aspect. I would move to Amsterdam and live there for a while, so this is something I will calculate on my end after I understand the taxes.

I have seen offers paying 80-100 eur/h. I am an it guy btw.


Like many I have used the Dutch Income Tax Calculator website only to find out it will be nothing like that. Obviously, I would like to benefit from the 30% ruling. But from what I understand most companies will not want to hire me as an employee. I could open the sole proprietorship but then I would not qualify for the ruling. So I would probably need an umbrella company or my own bv - and at that point I am totally lost in calculations. Do you know any details?

It looks like the regular employment would be much simpler solution but I am not sure any company would agree for that.

Thanks for any tips!

Realistically you will need to use a payroll company. It's possible to operate under a BV (Dutch LTD company) but it is expensive to set one up and greater admin overhead. There are lots of terrible payroll companies so choose wisely, don't just use the one your recruitment company would like you to use.

Expect anywhere between 60-65% take home pay assuming you have the 30% ruling. You may also qualify for a relocation allowance which is another ~€7k tax free. Qualifying for that means finding accommodation and registering with the municipality (can't just live out of a hotel).

It's also possible to operate as a ZZP (similar to sole trader) but you can't get the 30% ruling so it's not worth considering until after you have used up your 30% ruling (5 years). There are some other interesting tax breaks when you initially set up as a ZZP. From next year the rules change so that if you are a ZZP with a contract rate of at least €75p/h you and your client don't need to worry about disguised employment legislation, you can self declare with your client that you are not an employee.