Contracting and taxes in Netherlands Contracting and taxes in Netherlands
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  1. #1

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    Default Contracting and taxes in Netherlands

    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!

  2. #2

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    eek's Avatar
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    Did you do any search at all? https://www.contractoruk.com/forums/...ht=netherlands is probably out of date in some areas (10 year old articles) often are but the core details will still be valid as it's not like the Netherlands are stupid enough to change things with less than 2 years notice and
    leave the legislation to 7 weeks before the start date.
    merely at clientco for the entertainment

  3. #3

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    But the thread is about Belgium and I am asking Netherlands.

    I did search and there are some topics about Netherlands. Even some estimations of take home salary but without any details.
    Last edited by atais; 16th February 2020 at 14:02.

  4. #4

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    Ever heard of Google?

    Tax bands are here: Income tax in the Netherlands - Wikipedia
    Anything above €68.5k is taxed at 52%

    Add to that mandatory health insurance €1000-€2000 per annum per family member
    Local taxes, such as council, water protection, sewer and loads more I forgot
    21% VAT
    There is a mansion tax even for the smallest of properties if you're a homeowner

    But interest paid on mortgages can be deducted form tax
    Cars have 100-200% tax on them and on top of that VAT
    There is a wealth tax as well which starts very low

    Oh and incomes of spouses are added together so you always end up in the top bracket

  5. #5

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    Really great community.

    Quote Originally Posted by 19eek
    Did you do any search at all?
    Responds with rules about other country.

    Quote Originally Posted by Eirikur View Post
    Ever heard of Google?
    So far not that helpful and rude.

    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 :/
    Last edited by atais; 17th February 2020 at 13:29.

  6. #6

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    Quote Originally Posted by atais View Post
    Really great community.



    Responds with rules about other country.



    So far not that helpful and rude.

    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 :/

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

  7. #7

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    I can sum up

    You are taxed from day 1 in Holland Via a Dutch payroller, you will end up with approx 48% of your daily rate in net cash


    Sent from my iPhone using Contractor UK Forum

  8. #8

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    Quote Originally Posted by GhostofTarbera View Post
    I can sum up

    You are taxed from day 1 in Holland Via a Dutch payroller, you will end up with approx 48% of your daily rate in net cash


    Sent from my iPhone using Contractor UK Forum
    How did you come to that calculation of 48%? If you have the 30% ruling it would be higher than that
    Last edited by jf2010; 17th February 2020 at 15:50.

  9. #9

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    Quote Originally Posted by atais View Post

    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

  10. #10

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    Quote Originally Posted by eek View Post
    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.

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