Curious about the Netherlands

[gibbsville]

just as a comparison in regarding dealing with tax and heavy handed behavior give me the dutch tax authorities any day of the week over the german tax unit heard some horror stories from brit contractors getting raided at the crack of dawn laptops etc been taken away and risks of prosicution etc havnt heard any of that stuff the 5 years on and off that i have contracted in NL

[gibbsville]

Rough rule of thumb with NL

Up to 6 months UK LTD (if your agent will let you) some dont and will pull you towards a management company like yellowstone who BTW are ok they charge abot 250 euro a month though

over 6 months get your agent to put you up for the 30pc ruling and go the managed service route from day one you will see approx 65pc of what you earn

but a plus is getting mortgage interest releif on your uk mortgage which if your from down sarf can be quite a bit of cash

a rough rule of thumb for every grand a month you pay for your mortgage you get about 300 back so 2k a month mortgage you get 600 quid back from the belastindienst every year your there

[norrahe]

Here's a useful link:

Contracting in the Netherlands

Two things of note:



Even if you are not resident you are liable for income tax on Dutch sourced income.



i.e. if you do work through your Ltd there may well be a risk that a Dutch tax official will decide that you do have a permanent establishment, even if it is short term.

Just be aware of these risks. We regularly get "help I'm f***ed* posts from contractors who get into hot water with the tax authorities, i.e. working via their Ltd in a foreign country without registering. The safest way to deal with it is to tax yourself in the Netherlands. If you are not tax resident, you will most likely not be subject to social security and will probably not be paying the full rate of tax.

That's not to say that you can't work through your Ltd, but it does depend on whether you wish to be risk free or take your chances.

WHS

Also be wary of the 183 day rule as different options apply to different countries, whereas the UK specifies 12 calendar months others will state calendar year. There is a tax treaty between UK and NL to prevent double taxation but the NL taxman usually takes the stance of what you earn in NL you pay tax in NL.

[teclo]

Thanks norrahe, I'll have a deeper look into over the next couple of days and see if the agent comes back with anything good. cheers.

[BlasterBates]

Here's a useful link:

Contracting in the Netherlands

Two things of note:

Non-resident individuals are taxed on certain Dutch-source income only, mainly income from employment, directors’ fees, business income and income from Dutch immovable property.

Even if you are not resident you are liable for income tax on Dutch sourced income.

Your company will only be liable to Dutch corporation tax if it has a permanent establishment in the Netherlands. Whilst this is generally an office or branch, a permanent establishment can also be deemed to exist if the actual operations take place in the Netherlands.

i.e. if you do work through your Ltd there may well be a risk that a Dutch tax official will decide that you do have a permanent establishment, even if it is short term.

Just be aware of these risks. We regularly get "help I'm f***ed* posts from contractors who get into hot water with the tax authorities, i.e. working via their Ltd in a foreign country without registering. The safest way to deal with it is to tax yourself in the Netherlands. If you are not tax resident, you will most likely not be subject to social security and will probably not be paying the full rate of tax.

That's not to say that you can't work through your Ltd, but it does depend on whether you wish to be risk free or take your chances.

[norrahe]

Ah no I didn't ask about Tax avoidance. I was just wondering how it all worked, agent said that my ltd would be paid in £ in the uk but when I read about it, I'm finding it all a bit mixed. No you can't use your own Ltd over there; yes you can but for only 3 months..

I was just wondering if anyone had any recent experience.

You can use your limited.

And don't listen to what the agency will say as they will spin a load of BS to get you to use an unbrella.

I live in cloggers and have a Dutch accounant that is well versed on european tax law and also has knowledge of the use of a UK ltd when conducting business in NL.

[teclo]

Ah no I didn't ask about Tax avoidance. I was just wondering how it all worked, agent said that my ltd would be paid in £ in the uk but when I read about it, I'm finding it all a bit mixed. No you can't use your own Ltd over there; yes you can but for only 3 months..

I was just wondering if anyone had any recent experience.

[jamesbrown]

Conceptually, it isn't that difficult. Taxation of a person is generally based on a test of residency and often applies to worldwide income. Taxation of a corporation varies and is generally more complex (you can also think in terms of corporate residency, but the rules involve things like central management and control). You're a person, foremost . You also have a company. Thus, you have two separate headaches. There are many threads here on this and related topics. It's good to familiarize yourself, but ultimately you need a professional with cross-border tax experience.

[norrahe]

Make sure your next call is to your accountant then. After that use the search button for Netherlands or Amsterdam.

Which isn't very helpful as I found out when I decided to research it last year.

To the OP *adopt NLUK mode* seriously did you really ask a question about tax avoidance?

you cannot avoid tax in NL, you will be registered for tax there from day 1 and you will pay taxes there.
you can use your limited but you need to provide certain info to the belaingdienst to do so, you will also need to register for a SOFI number and then a BSN number (as you exceed a duration of four months)
Speak to an accountant who actually knows what they are talking about the Dutch tax laws are complex especially in respect

Do some research and if you need the number of a Dutch accountant who can give you advice pm me. But don't PM me until you have researched the subject.

[northernladuk]

If by extensively you mean, just started looking into it as I'm just off the phone with the agent, then yes. Very extensively..

Make sure your next call is to your accountant then. After that use the search button for Netherlands or Amsterdam.

[teclo]

Seems to me like you have extensively researched the subject and will be making an informed decision in the best interests of both yourself and your Limited Company. Boomed huh. Easy game this

If by extensively you mean, just started looking into it as I'm just off the phone with the agent, then yes. Very extensively..

[fckvwls]

I've been contacted by a UK agency about a possible 6 month role in Amsterdam, and I was wondering if being paid by the agency in Sterling to my Ltdco means I can avoid the local tax system?

Seems to me like you have extensively researched the subject and will be making an informed decision in the best interests of both yourself and your Limited Company. Boomed huh. Easy game this

[teclo]

I've been contacted by a UK agency about a possible 6 month role in Amsterdam, and I was wondering if being paid by the agency in Sterling to my Ltdco means I can avoid the local tax system?