Reply to: Contracting and taxes in Netherlands

[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.

[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.

[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*

[MasterBait]

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 https://thetax.nl 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!

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

[sal]

Where ?


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Red lights district...

[GhostofTarbera]

This is why I dont bother with this forum....

Yes there is work in Amsterdam ...

Where ?


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[Stevie Wonder Boy]

What you have right now is a dream of 100 eur an hour, Amsterdam contractor market is as dead as London, why would someone hire you? Rather than a local resource ? Where agents are getting 1000’s of applicants per gig?


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This is why I dont bother with this forum....

Yes there is work in Amsterdam ...

[m0n1k3r]

Like many I have used the https://thetax.nl 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?

Working as an independent freelancer (e.g. what would be 'outside IR35 in the UK) is called 'ZZP' in the Netherlands. Belastingdienst has published a standard contract that fulfil what they consider as working on an independent basis.

If not, then the hirer will require you to go on payroll. Most contracts are of the on-payroll kind.

The 30% ruling aside, if it's only you, then operating as a sole trader is more tax beneficial in the Netherlands than operating through a BV. But if you go the BV route, you will be employed by the BV and I believe you would be able to apply for the 30% ruling. You'll be required to take at least €45,000 on Dutch PAYE in order to have any other benefit from operating through a BV, as any dividends you take would otherwise be deemed as being salary instead.

[ladymuck]

I am a guy, but whatever.

I would not call your answer comprehensive, rather: general.
Just like others you just put some random numbers, 1000 or 2000 euros, 100-200%, very low, very high...
How am I supposed to use those to calculate my income?

I gave a precise hour rate and nobody provided any precise number out of that.
Neither did nobody provide any details regarding the legal scheme I should use in my situation: BV, umbrella, perm, I don't know what else. Any comparison?

Last but not least, I am really surprised by the general rudeness towards my post.
Linking unrelated threads or general NL tax rules is not helpful at all. Neither is stating that I must have not used google or search.

Really disappointed by this place so far...

But regarding:



Just because someone else might end up on this forum from google, like me, I will try to help them out with some useful info when I get it.

Peace.

So what you're saying is you want a bespoke, detailed quote for free from an anonymous internet forum.

[GhostofTarbera]

What you have right now is a dream of 100 eur an hour, Amsterdam contractor market is as dead as London, why would someone hire you? Rather than a local resource ? Where agents are getting 1000’s of applicants per gig?


Sent from my iPhone using Contractor UK Forum

[atais]

Don't answer this troll anymore.
Gave her a comprehensive answer and she ignores it. Hey I lived 38 years in that sh*thole so may know something

I am a guy, but whatever.

I would not call your answer comprehensive, rather: general.
Just like others you just put some random numbers, 1000 or 2000 euros, 100-200%, very low, very high...
How am I supposed to use those to calculate my income?

I gave a precise hour rate and nobody provided any precise number out of that.
Neither did nobody provide any details regarding the legal scheme I should use in my situation: BV, umbrella, perm, I don't know what else. Any comparison?

Last but not least, I am really surprised by the general rudeness towards my post.
Linking unrelated threads or general NL tax rules is not helpful at all. Neither is stating that I must have not used google or search.

Really disappointed by this place so far...

But regarding:

Please do feed back so that your research helps others in future.

Just because someone else might end up on this forum from google, like me, I will try to help them out with some useful info when I get it.

Peace.

[Eirikur]

Don't answer this troll anymore.
Gave her a comprehensive answer and she ignores it. Hey I lived 38 years in that sh*thole so may know something

[Paralytic]

Well I thought that there is a chance someone has done a similar thing and he/she could share the insights...

Thanks for trying guys, but I hope you understand that reading those two, completely different estimations, based on no evidence or calculations, does not convince me at all.

I will try contacting some accountants in NL and probably provide the answer on my own...
Cheers.

Please do feed back so that your research helps others in future.

[atais]

Why would you expect a forum about working in the UK to know the full ins and outs of working in another country..

Well I thought that there is a chance someone has done a similar thing and he/she could share the insights...

you will end up with approx 48% of your daily rate in net cash

would come out with approx 62% net

Thanks for trying guys, but I hope you understand that reading those two, completely different estimations, based on no evidence or calculations, does not convince me at all.

I will try contacting some accountants in NL and probably provide the answer on my own...
Cheers.

[jf2010]

I have no idea how would BV or umbrella company affect my earnings and I have no idea what questions should I ask.
Would I be subjected to double taxation? First for company income and then the dividend?
Should I be the employee or maybe just take the dividends?

Maybe it is not worth at all, maybe just going perm is easier and I could enjoy the 30% ruling.
Again, no idea.

Thanks for clarifying :/

You can go with an umbrella company and if you were on between 80-100e per hour you would come out with approx 62% net

This calculation is based on you having the 30% ruling, which is usually very straightforward