Reply to: Anyone contracting in the Netherlands or know about the tax system?

[nlancer]

It's kind of a late reply, but better now than never. I work as a freelancer in NL.
Your calculations are correct about the net retention. In general, having the 30% ruling and a freelancer salary will give you a 61-63% net retention or a simpler calculation would be: say you negotiate 70 euro/hour, then your net monthly salary would be about 7000 euros (assuming you get/have the 30% ruling). You can get a quotation by asking any umbrella company here in NL.

I noticed that you found your contract in The Netherlands via MBA (Michael Bailey's Associates). Be aware that their contracts are very shady and when you'll want to leave or you get fired, they will not pay you for the notice period. Should you want to sue them, they'd suddenly become very difficult to reach out to.

[jonballantine]

Hi,

I've been offered a contract in Amsterdam for 6 months, and understand I qualify for the 30% tax ruling. I've been given a break down of the expected salary etc and I've got a couple of questions that I thought I might get a clearer answer on here than from the recruitment agency.

The salary is based on 12 months which is fine and comes to €122200 for the year, that's fine, but then as part of the break down of payments I have to make, one is €21449 for income tax (no problems with that one), another is €9491 for Dutch NI premium and the other is Dutch employers social security which is €9945.

If anyone else is working over there, can you confirm that you pay these? I wondered if I could pay UK NI instead, so I paying my stamp here. I thought there was a dual NI treaty? And also should I be paying the Dutch Employers Social Security?

The figures come out Gross income €122200 and Net €77735, but if I put the gross figure into a Dutch tax calculator (thetax.nl) it shows income of €87,927 with paying Social Security and €95,745 without paying it.

The agency is Michael Bailey if anyone has used them? Any help would be appreciated, as it looks like I would be paying €10K-18K more than I should be.

Thanks in advance.

How did this turn out? I was offered a similar contract by Michael Bailey and I am trying to figure out if the difference between Gross and Net is due to the Agency or the Dutch Tax laws. Similar to you, the Dutch Tax Calculator showed a much higher monthly net rate than was is being offered.

[jonballantine]

Michael Bailey

Hi,

I've been offered a contract in Amsterdam for 6 months, and understand I qualify for the 30% tax ruling. I've been given a break down of the expected salary etc and I've got a couple of questions that I thought I might get a clearer answer on here than from the recruitment agency.

The salary is based on 12 months which is fine and comes to €122200 for the year, that's fine, but then as part of the break down of payments I have to make, one is €21449 for income tax (no problems with that one), another is €9491 for Dutch NI premium and the other is Dutch employers social security which is €9945.

If anyone else is working over there, can you confirm that you pay these? I wondered if I could pay UK NI instead, so I paying my stamp here. I thought there was a dual NI treaty? And also should I be paying the Dutch Employers Social Security?

The figures come out Gross income €122200 and Net €77735, but if I put the gross figure into a Dutch tax calculator (thetax.nl) it shows income of €87,927 with paying Social Security and €95,745 without paying it.

The agency is Michael Bailey if anyone has used them? Any help would be appreciated, as it looks like I would be paying €10K-18K more than I should be.

Thanks in advance.

I am in a similar situation and am being offered a contract from Michael Bailey. The rates are similar to you and when I compare their net monthly offer using the Dutch Tax Calculator, there is a wide discrepancy. Did you have to pay "accounting fees"? I'm wondering if it is the Agency and not the Dutch tax laws driving down the gross.

[tarbera]

really

I did a 6 month stint in NL during 2015. I opted for the route of using my own UK limited co, !

You do know that against dutch law, as you are taxed in Holland from day 1


anyhoo OP - give my old pay rolling company a call - for a bespoke solution

https://www.a2z-payrolling.com/freelancers

[aproto]

A bit weird. My last contract in the Netherlands was a 3 figure Euro hourly sum plus expenses and no tax needed to be paid there due to a tax agreement with Germany. Just some paperwork to prove I was resident in Germany and away I went. The contract was not bad and got on well with the Dutch guys and I've worked a few times since in Holland and had no problems...Everyone has a different experience

Hey darmstadt,

Would you please be so kind to tell me which form you had to fill in? Just a "VAR"?

I might soon find myself in the same situation (freelancer living and registered in Germany with gig in the Netherlands).

Cheers!

[rocktronAMP]

Hmmm ... this thread seems be a wee downer on contracting in Netherland.

I just had a 15 minute call from recruitment agent about a contract in Netherlands, who just banged on and on.

The rate was 75 Euro / Hour.

The contract length was 12 months.

The location is Amsterdam.

As a ball park, is this economic viable?

There was no talk of expenses, but relocation. An existing mortgage and plus I have feeling this is a punt by recruiters fishing for game at the start of the year. Why would they pay a Brit an exorbitant rate more than a local Dutch worker?

I will answer my own question.

(77Euro per hour * 37.5 working hours per week ) / 5 days = 577.50 Euro / day

Using XE.com, 1 EUR == 0.850803 GBP (on 3rd January 2017 at 19:09 GMT(!))

Therefore 490.913 GBP / day. Not nearly attractive, then when taking the living expenses of Amsterdam and with a living family back in the UK.

[rocktronAMP]

Only as a visitor, not when you become a worker, student or self-sufficient resident.

All the EHIC does is allows the local system to backcharge the NHS for any treatment you may have.

Hmmm ... this thread seems be a wee downer on contracting in Netherland.

I just had a 15 minute call from recruitment agent about a contract in Netherlands, who just banged on and on.

The rate was 75 Euro / Hour.

The contract length was 12 months.

The location is Amsterdam.

As a ball park, is this economic viable?

There was no talk of expenses, but relocation. An existing mortgage and plus I have feeling this is a punt by recruiters fishing for game at the start of the year. Why would they pay a Brit an exorbitant rate more than a local Dutch worker?

[stek]

surely your EHI card covers health?

Only as a visitor, not when you become a worker, student or self-sufficient resident.

All the EHIC does is allows the local system to backcharge the NHS for any treatment you may have.

[Lance]

I love working in the Netherlands as the tax rates are lower than Belgium and Dutch is easier to understand than Flemish. Flemish is like trying to understand a drunk from Scotland at midnight. Don't forget that you will need private health care as well as your social security payments( like Switzerland)

surely your EHI card covers health?

[Brussels Slumdog]

I love working in the Netherlands as the tax rates are lower than Belgium and Dutch is easier to understand than Flemish. Flemish is like trying to understand a drunk from Scotland at midnight. Don't forget that you will need private health care as well as your social security payments( like Switzerland)





E

[m0n1k3r]

A bit weird. My last contract in the Netherlands was a 3 figure Euro hourly sum plus expenses and no tax needed to be paid there due to a tax agreement with Germany. Just some paperwork to prove I was resident in Germany and away I went. The contract was not bad and got on well with the Dutch guys and I've worked a few times since in Holland and had no problems...Everyone has a different experience

An A1 certificate and note more than 182 days in the Netherlands?

Foreigners can rely on the 30% ruling for some time.

Dutch residents have a number of tax deductions and incentives if registered as self-employed (far better than operating through a BV).

[Boo]

I still have Dutch friends from my time over there. They are pretty different in odd and strange ways,

More, please ?

Boo

[darmstadt]

Lived in the Netherlands for 39 years. The taxes are so ridiculously high and daily rates so low, it made me emigrate to the UK.
There is no way a contract can be more profitable in NL, there are always contracts with higher rates local to you in the UK and no need to rent an expensive expat accommodation.
Add to that the annoying and rude Dutch people I recommend you to stay away from it if you can. Most British expats come back screaming within 3 - 6 months
(I know you will ignore this, but I also know in 1 year time you will say "yes you were right")

A bit weird. My last contract in the Netherlands was a 3 figure Euro hourly sum plus expenses and no tax needed to be paid there due to a tax agreement with Germany. Just some paperwork to prove I was resident in Germany and away I went. The contract was not bad and got on well with the Dutch guys and I've worked a few times since in Holland and had no problems...Everyone has a different experience

[hunkydorey]

Hotel accom is pretty expensive too especially amsterdam and the hague

[Eirikur]

Lived in the Netherlands for 39 years. The taxes are so ridiculously high and daily rates so low, it made me emigrate to the UK.
There is no way a contract can be more profitable in NL, there are always contracts with higher rates local to you in the UK and no need to rent an expensive expat accommodation.
Add to that the annoying and rude Dutch people I recommend you to stay away from it if you can. Most British expats come back screaming within 3 - 6 months
(I know you will ignore this, but I also know in 1 year time you will say "yes you were right")