Contracting in The Hague (Netherlands)?

[kismet110]

Hi all

Currently I'm contracting for an Investment Bank in London and have been approached by a pimpette about a possible 3 month rolling contract for a large multinational.

Rate is about the same as I get here (but flights/accomodation would come out of that). The role sounds pretty good; with my contract up in a month and renewal not a foregone conclusion due to the credit jitters I'm keen to at least find out more.

I've emailed my beancounter regards the tax implications but please feel free to offer your input on any aspect at all about working there!

Cheers

[oracleslave]

http://www.contractoruk.com/overseas...therlands.html

[kismet110]

^^^

Thanks for the quick response, I did look at that first (honest!) and it was helpful but also hoping people can share some of their experiences of working there too so I can get an overall picture before making any commitment.

[Jubber]

Here's one I did earlier ....

I was over there a few years ago.

The agency insisted I was paid through a firm of accountants of their choice. This is to do with 'chain law' that exists out there apparently - the agency are liable for any unpaid tax etc. The accountants applied for the '30% rule' ,which gives a proportion of tax relief to non residents. (I think it was 35% back then) I saw about 70% of my money in the end. Until the '30% rule' came through I was taxed at over 50% - but I got it all back.

Tax is large out there, so do your homework before you sign.

Great country. Lovely people.

[kismet110]

^^^

Thanks for that! Any more comments/input welcome ....

[Turion]

Presumably you will commute weekly to NL, spending 4 nights there a week, with your main residence in UK. As long as you don't exceed 180 days in NL you are non-resident and can use your Ltd co in the normal way. Just don't open a local bank account, or sign long term rental contracts as this may damage your case.

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 has to be applied for. A management co will charge 400-600 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. Many will, otherwise walk away.

[kismet110]

^^^

Thanks very much, this is exactly the type of info I need to make a more informed decision!

Crude calculations suggest I'll be quite a lot out of pocket anyway (with having to pay for flights/living and more tax) so will ask for a rate hike and insist I want to use my limited company if their interest goes further than the initial telephone interview.

Thanks again, any more advice is of course welcome!

[Jubber]

I was on a very good rate at that time (Telecom Boom) and was there for a year. I had no choice (or so I was told) - the agency (and I was told also the client) would not take me on unless I used a Dutch registered management company (re: chain law) I think you may find it hard to get an agency to agree to go Ltd because of this. If you get extended beyond the 183 days they are liable. But I am no expert, check it out with the agent/accountants etc.

I loved it out there - would love to go back.

J

[Moscow Mule]

I recently did a two month contract in Amsterdam. UK Ltd, UK pimp no worries.

Nice people to do business with...

[Fred Bloggs]

Presumably you will commute weekly to NL, spending 4 nights there a week, with your main residence in UK. As long as you don't exceed 180 days in NL you are non-resident and can use your Ltd co in the normal way.

So, you are in fact saying then that a person can work up to (180/4) 45 weeks a year in NL and stay in the UK tax system? Is this a general thing in the EU? It puts an entirely different spin on working in the EU if this is the case. I generally work 44 weeks a year and have turned down EU work in the past due to tax complications around the 183 day rules. Thanks.