The Netherlands


Introduction

Through our PAYE scheme, you become an employee of our local partnering company and we deduct taxes and social security payments at source. We then pay them to the appropriate authorities on a monthly basis. Highly skilled foreign workers may also apply for The Thirty Percent Ruling, which grants tax and social security relief on thirty percent of all Dutch income.

Immigration

Nationals of the EU/EEA Member States and Switzerland are able to work without restriction in Holland except for citizens of the most two recent members Bulgaria and Romania. Bulgarian and Romanian citizens still need a work permit to be able to work in the Netherlands.

Tax residency 

Individuals resident in The Netherlands are subject to personal income tax on their worldwide income. Foreign taxes on foreign-sourced income are normally relieved, either under double tax treaties or under Dutch unilateral rules. Non-residents are liable for personal income tax only on income derived from a limited number of Dutch domestic sources such as income received for duties performed within The Netherlands and income from Dutch real estate.

The residence of an individual is determined by actual circumstances. One of the
most relevant considerations is whether the individual has permanent personal or
economic ties with The Netherlands.

Income Tax bands

Income tax is a tax on the annual income of individuals which is levied at a progressive rate. Personal circumstances are, however, taken into account and certain expenses are deductible. There is a personal allowance (by tax credits) dependent on individual circumstances.

Taxable income(€)      

  • 0 – 18,628              33.1% 
  • 18,628 – 33,436    41.95% 
  • 33,436 – 55,694    42.00%
  • Over 55,694          52.00%

30% ruling

In The Netherlands there are special conditions for certain foreign employees who
work for a Dutch employer for a maximum of 120 months. They can obtain a 30%
tax free allowance for extra territorial costs provided they perform activities in The
Netherlands and have a special knowledge or capability which is not, or is rarely,
available in The Netherlands. As of 2012 the “specific knowledge” criterion in
principle is fulfilled if a minimum salary requirement is met. Some other restrictions
have been introduced, such that the 30% ruling no longer applies for people living in
a radius of 150 km from the Dutch borders.
Based on a resolution of 12 January 2010 of the Secretary of Finance for employees
who work within a worldwide group and are sent to The Netherlands for less than 60
days over a 12 month period, no Dutch taxes are levied under certain conditions.

Social security

  • ca. 21.20% for employers on gross salaries, including:
  • 7.10% health of up to a maximum of EUR 33’427 per year,
  • 4.55% unemployment,
  • 2.79% pension contribution,
  • 5.05% disability insurance
  • 1.586% sickness benefit,
  • 0.13% Wao/Wga gediff

How much will I take home?

Please contact our Dutch specialist who will discuss your personal circumstances with you and help you to minimise your tax and social security liabilities, within the bounds of Dutch legislation.