General
Why has ESWW been founded?
That is for practical reasons. As Founders, we noticed that we were increasingly asked questions for which we had to call in each other’s expertise. To make things more convenient and transparent for clients, we then decided that it would be best for us to form a joint venture. One account manager, one invoice, and round-the-clock access to the latest information.
Does ESWW only work business-to-business or also for private individuals?
We typically work for businesses, but also give advice to individuals.
Does ESWW only work for people wishing to relocate to the Netherlands?
No, ESWW can assist people all over the world if they wish to relocate and work in another country.
Visas
Can I travel into a country more than once on a Business Visa?
On a Single Entry you will be allowed to visit the country once; on a double entry you can visit the country two times, and on a Multiple Entry you can visit the country several times within a given period of time.
Can I work in another country on a Business Visa?
No, a Business Visa is issued to foreign citizens who have been invited into the country for visit, research, lecture, the business world, exchanges in the filed of science, technology, education, culture, and sport, or for attending various kinds of trade fairs, exhibitions, etc. For insurance reasons, too, you are not permitted to work on a Business Visa!
Work/residence permits abroad
Do I have to have a medical check-up for a work permit?
This differs for each application, country, and nationality.
What are the costs of a work permit application?
The costs are different for each country. It depends on the requirements and the personal assistance needed for the work/residence permit application, the consular fees, translation costs, etc.
What is the procedure when you apply for a work/residence permit?
The procedure is different for each country (in China for each province) and nationality.
When is an application for a work permit required, and when is a visa application?
If you work in a country, you need to apply for a work permit.
Work/residence permits for the Netherlands
What is an Apostille?
For the use of foreign documents in the Netherlands, the Dutch government has entered into an Apostille Treaty with several countries. These countries issue an Apostille stamp (or sticker) for the foreign document, so that it may be registered in the Netherlands.
A list of the Treaty countries and their designated authorities may be found on the website of the “Hague Conference on International Private Law”.
This legislation stamp must be obtained at the country where the document has been issued.
What documents does the family of a foreign employee need to come to the Netherlands?
– A valid travel document
– Health Insurance coverage in the Netherlands
– A legalized (translated) marriage certificate (not older than 6 months)
– A legalized (translated) single-status declaration (not older than 6 months)
– A legalized (translated) birth certificate (not older than 6 months)
How does a foreign employee acquire a Citizen Service Number (i.e. ‘BSN’ or ‘SOFI’ number)?
A foreign employee who is going to live, work, and, in effect, pay taxes in the Netherlands, requires a social security number, a.k.a. Citizen Service Number (BurgerServiceNummer or ‘BSN’). This is a unique personal number used in your contacts with the authorities. The BSN number is obtained on registration with a Dutch municipality.
How quickly can a foreign employee get a work- and residence permit in the Netherlands?
If the foreign employee meets the following requirements:
– A valid travel document
– Health Insurance coverage in the Netherlands
– A signed employment contract
– Compliance with the salary criteria
– Employer is a recognized sponsor of the IND
The foreign employee will be able to obtain a work- and residence permit in the Netherlands within 3 -4 weeks.
When does a foreign employee not need a work permit?
If the foreign employee is a national of any of the countries of the European Union and the European Economic Area.
Employees with the Croatian nationality need a work permit for minimal one year.
What is an authorization for temporary stay (‘MVV’)?
An ‘MVV’ is an entry visa, that is, a sticker issued by the Dutch representative in the country of origin or permanent residence if somebody intends to stay in the Netherlands for more than 3 months.
The foreign employee who will be employed in the Netherlands for more than three months needs an authorization for temporary stay (‘MVV’) unless the person concerned is a national of any of the following countries: Australia, Canada, Japan, Liechtenstein, Monaco, New Zealand, Norway, the United States, Iceland, South Korea, and Switzerland. Also excepted are nationals of the countries of the European Union and the European Economic Area.
Foreign employees who are employed in an EU country with a valid residence permit, can travel to the Netherlands without an “MVV”.
Housing
What does ‘diplomatic clause’ mean in a tenancy contract?
A diplomatic clause in a tenancy contract enables the tenant of a property to terminate the tenancy agreement for so-called ‘professional or diplomatic’ reasons. This means that, if the tenant is obliged to leave the area in which the rented property is located, he/she will be able to terminate the tenancy contract prematurely.
There are several homes available -> housing tour?
It may be that the skilled-migrant Expat would like to visit several properties. If the skilled migrant is staying in the Netherlands, we can arrange a housing tour so that he/she may visit several homes. Our housing consultant will assist the skilled migrant during this tour. Once the Expat has found a suitable home, we will provide him/her with assistance during the price negotiations.
What documents does a foreign employee need to rent a home in the Netherlands?
– Passport or identity card
– Employer’s statement (not older than 1 month)
– Employment contract
Can I pass on my housing requirements to you?
Of course this will be possible. We have drawn up a list of housing requirements on which you can specify all your preferences. Based on these preferences, we will then try to find a home in the area of your choice.
What does the average rented house cost in the Netherlands?
The price of a Dutch home depends on the area or location of the home. According to a survey conducted by the central Bureau of Statistics in 2010, an average of 38% of wages is spent on rented housing. The costs of heating and electricity are approximately 7%. However, there are differences based on the main wage-earner’s income and age. Another determining factor is the number of persons per household .
30% allowance rule
Is it possible to apply the 30% allowance rule without an employer (freelance) / without an employer in the Netherlands?
One of the conditions for applying the 30% allowance rule is the presence of a withholding agent in the Netherlands.
Regarding freelance jobs, there will not be a formal withholding agent, so that the 30% allowance rule cannot be applied. Under certain circumstances, it will be possible, via opting in, or pay-rolling, to create a situation in which the 30% allowance rule can be applied. Of course this should not be done without careful planning.
If an employee is deployed to the Netherlands by his/her foreign employer, without there being a permanent establishment or a permanent agent in the Netherlands, then it will not be possible to apply for the 30% allowance either. In that situation, the foreign employer may have himself appointed as the withholding agent on the basis of the applicable income tax laws.
Is it possible to carry forward the 30% allowance to a new employer?
If there is a change of employers, but the employee still qualifies for the 30% allowance, then it will be possible to apply for the allowance again. Periods of previous residence and use of the 30% allowance will be deducted from the maximum effective period of the allowance. The period between the end of the old employment contract and the start of the new employment contract must not be more than 3 months.
When do I qualify for the 30% allowance rule?
The 30%-allowance rule is a tax facility for employees who are deployed to the Netherlands, or are deployed by their Dutch employer to certain regions outside the Netherlands.
This group is referred to as extraterritorial employees. Under certain conditions, employers can give such employees an allowance to defray the costs of their temporary stay outside their country of origin. Regarding a specific group of newly arrived employees, the employer and the employee can jointly submit a request to the tax authorities to set this tax-free allowance at (a maximum of) 30% of the employee’s wages.
The 30%-allowance rule for newly arrived employees is only available for employees who meet the following requirements:
– Shortage of specific skill/expertise, and taxable wages after applying the 30% allowance rule must be at least € 37.000 (PhD students and newly graduated Masters excepted).
– For two-thirds of a period of 24 months prior to the effective date of the Dutch employment contract, the employee resided outside a radius of 150 kilometers (as the crow flies) from the Dutch border.
– An employee arriving from abroad, but who has previously lived or worked in the Netherlands, will have the period of his previous stay in the Netherlands deducted. For this, a period of 25 years prior to their employment in the Netherlands will be taken into account.
The 30% allowance rule for employees deployed abroad does not have to be applied for, but can be used for employees deployed to any of the following regions:
– Asian countries (including Hong Kong and the part of Turkey east of the Bosporus)
– African countries
– Latin American countries (including the Netherlands Antilles and Aruba)
– the following European countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia Herzegovina, Bulgaria, Estonia, Georgia, Hungary, the Federal Republic of Yugoslavia (Serbia and Montenegro, including Kosovo), Croatia, Latvia, Lithuania, the former Yugoslavian Republic of Macedonia, Moldavia, Ukraine, Poland, Rumania, the Russian Federation, Slovenia, Slovakia and the Czech Republic
Taxes
Double taxation & national insurance contributions: Treaties
In the event of cross-border activities, the taxpayer may be confronted with taxation and national insurance contributions in more than one country. For this reason, the Netherlands has entered into (bilateral) tax treaties with a great many countries. The Netherlands has also entered into bilateral and multilateral treaties regarding national insurance payments. If there are no treaties in place, you can fall back on unilateral (Dutch) tax facilities.
When does an obligation to pay (income) tax come about for employees in the Netherlands?
An obligation to pay taxes in the Netherlands may come about when you are going to live and work in the Netherlands, but also when (for instance) you are merely the owner of a property in the Netherlands.
For tax purposes, a distinction is made between residents and non-residents in the Netherlands. The basis for tax assessments will be different in either situation. Hence it will be essential to establish whether an employee who has been deployed to the Netherlands must be regarded as a resident or not.
Residency is established on the basis of facts and circumstances. Having a long-term personal relationship with the Netherlands is a very important factor (home, family, job, duration of stay). The existence of this personal relationship will lead to (fiscal) residency, i.e. resident taxpayer status, as opposed to non-resident tax-payer status. Moreover, a non-resident taxpayer may opt for resident taxpayer status, and an employee to whom the 30%-allowance rule applies may opt for partial non-resident tax-payer status.
Resident taxpayers (and non-resident taxpayers who have opted for resident taxpayer status) will have to submit their tax returns in the Netherlands stating their entire (global) income and assets (that is, everything you earn and everything you own). For non-resident taxpayers, this tax base will be limited to Dutch income and Dutch assets (specifically, income from Dutch enterprises, employment, and ownership of Dutch real estate).
Although tax rates do not distinguish between non-resident tax-payer status and non-resident tax-payer status, there are big differences in the applicability of deductible items and tax credits. In the event of non-resident tax-payer status, it is therefore advisable to check carefully if opting for non-resident tax-payer status will lead to a lower tax burden.