Operating as a UK Limited company in The Netherlands Operating as a UK Limited company in The Netherlands
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  1. #1

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    Default Operating as a UK Limited company in The Netherlands

    I am a contractor operating as a UK Limited company. I have signed a contract with a UK based agency who is paying me in euros into my business UK bank account. However, the contract is to work on site in The Hague Netherlands.

    Prior to this, there was a contract to work onsite in Brussels. I have till now applied for a tax residency in the UK with HMRC and hence i have continued to pay my taxes only in the UK which has been fine with Belgium authorities.

    I have read that The Netherlands has a somewhat complicated tax system and i wonder if i can carry on operating the way i have in the Belgium. I realise that there is a mandatory SOFI or BSN registration. The former is for contractors not staying long enough. What is deemed as not long enough? Also is there a requirement for those registered under SOFI to be making weekly trips back home?

    I am going to get an apartment to stay at for my work there so am worried about this mandatory registration. This registration will place me on their systems and be put on the Dutch tax system as well. Am worried as I have heard allot about how the Netherlands is very on the ball and have even caught people at the airport who think they have been on the right side of tax contributions.

    Looking for some advice. Many thanks.

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    Check the welcome FAQ section for a sticky on how to search the forums. There are quite a few threads on this topic that might be of some use.
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  3. #3

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    Default I am in a similar position and looking for an answer. Any pointers?

    Quote Originally Posted by IT_BOY View Post
    I am a contractor operating as a UK Limited company. I have signed a contract with a UK based agency who is paying me in euros into my business UK bank account. However, the contract is to work on site in The Hague Netherlands.

    Prior to this, there was a contract to work onsite in Brussels. I have till now applied for a tax residency in the UK with HMRC and hence i have continued to pay my taxes only in the UK which has been fine with Belgium authorities.

    I have read that The Netherlands has a somewhat complicated tax system and i wonder if i can carry on operating the way i have in the Belgium. I realise that there is a mandatory SOFI or BSN registration. The former is for contractors not staying long enough. What is deemed as not long enough? Also is there a requirement for those registered under SOFI to be making weekly trips back home?

    I am going to get an apartment to stay at for my work there so am worried about this mandatory registration. This registration will place me on their systems and be put on the Dutch tax system as well. Am worried as I have heard allot about how the Netherlands is very on the ball and have even caught people at the airport who think they have been on the right side of tax contributions.

    Looking for some advice. Many thanks.
    I am in a similar position and looking for an answer. Any pointers?

  4. #4

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    Quote Originally Posted by pudseyguy View Post
    I am in a similar position and looking for an answer. Any pointers?
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    Quote Originally Posted by northernladuk View Post
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  5. #5

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    Quote Originally Posted by IT_BOY View Post
    I am a contractor operating as a UK Limited company. I have signed a contract with a UK based agency who is paying me in euros into my business UK bank account. However, the contract is to work on site in The Hague Netherlands.

    Prior to this, there was a contract to work onsite in Brussels. I have till now applied for a tax residency in the UK with HMRC and hence i have continued to pay my taxes only in the UK which has been fine with Belgium authorities.

    I have read that The Netherlands has a somewhat complicated tax system and i wonder if i can carry on operating the way i have in the Belgium. I realise that there is a mandatory SOFI or BSN registration. The former is for contractors not staying long enough. What is deemed as not long enough? Also is there a requirement for those registered under SOFI to be making weekly trips back home?

    I am going to get an apartment to stay at for my work there so am worried about this mandatory registration. This registration will place me on their systems and be put on the Dutch tax system as well. Am worried as I have heard allot about how the Netherlands is very on the ball and have even caught people at the airport who think they have been on the right side of tax contributions.

    Looking for some advice. Many thanks.
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  6. #6

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    Tax residency is complicated but one legitimate way to save lots of tax if you set up correctly. You residence will be determined by a number of factors and not just days spent in the country (although this is one of the factors that will be considered).

    Here are some questions you should consider when thinking about residency:
    • How long is your contract?
    • How often do you expect to return to the UK during that time?
    • Do you own a property?
    • Do you have a family?
    • What is your nationality?

    I don’t know much about the BSN/SOFI number but it sounds like this will put you on their radar so best to get things lined up before you register.

  7. #7

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    Normally an agency that has a contract with a Dutch customer won't allow you to use a foreign LTD to invoice them as they would be breaking Dutch labour laws.
    If the agency has a contract with a Belgian customer and that customer sends you to Holland then that maybe a grey area.

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  8. #8

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    It isn't just a matter of tax residency. Residency doesn't mean you don't pay tax. In any country everyone is liable for tax if they have income in that country regardless of whether you're resident. Just as an example if you were to be employed in the Netherlands, you would pay tax on that employment income from day one, even if it were a 3 month contract and you were tax resident in the UK.

    Tax residency just simply means you pay tax on your world wide income.

    If you are actually working in the Netherlands on site then you will be subject to Dutch regulations, regardless of whether you are there less than 183 days. Therefore you will have to go through their registration.
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