How to set up as an independent contractor in the Netherlands

Ready to take control of your career and make a living on your own terms?

Then, the Netherlands is an ideal location to begin your self-employed journey.

With a vibrant and dynamic startup scene, an innovative spirit, and a famously laid-back lifestyle, you won't be short of freedom and opportunities. Independent contractors are celebrated, supported, and empowered to succeed here, and the capital, Amsterdam, is one of the world’s top destinations for remote work.

Before you get started, though, you’ll need to understand how to:

• Register your business in the Netherlands

• Avoid misclassification as an employee

• Create compliant contracts that protect you

• Invoice and collect payments from around the world

In this article, we cover how to become an independent contractor in the Netherlands. We also help you navigate your tax obligations as a self-employed worker and discuss some of the other risks and liabilities you should be aware of.

But first, it’s important to clarify how the Netherlands defines independent contractors.

What is an independent contractor according to Dutch law?

Independent contractors are workers who provide paid services to another party. However, they are classified differently than part-time and full-time employees and aren’t always entitled to the same benefits. So, they are technically service business owners in many cases.

See also: Why businesses hire contractors vs. international employees

In the Netherlands, independent contractors and freelancers are known as “self-employed professionals without staff” (zelfstandige zonder personeel, or ZZP’ers). Under the country’s Employment Relationships Deregulation Act (DBA), you are generally considered a ZZP’er if you:

• Have a service agreement instead of a labor contract

• Determine your own work schedule

• Perform work for other companies

• Set your own rates

• Don’t receive benefits from your employer

• Are able to delegate or subcontract work

• Set your own working hours

• Work without direction or supervision

If you’re unsure about your status, you can contact the Dutch Tax and Customs Administration (Belastingdienst) for clarification.

When setting up as an independent contractor, it’s important to be correctly classified to avoid penalties and fines.

What are the residency and permit requirements to be self-employed in the Netherlands?

Independent contractors must meet the Dutch permit and visa requirements to work in the Netherlands as a self-employed person. These requirements vary depending on what country they’re a resident of.

You don’t need a visa, residence, permit, or work permit if you’re a citizen of:

• Any European Union member country

• Liechtenstein

• Norway

• Iceland

• Switzerland

You will need a valid passport or other ID document to prove your citizenship in one of those countries. You may also need to notify the government via the online notification portal for foreign workers if you come from one of the above countries and work in specific sectors. Find more information about these special cases on the Dutch government site.

If you’re not a resident of one of the above countries, then you’ll have to go through some more steps.

First, you’ll need a work authorization check.

After that, you need the following documents:

• A residence permit for a self-employed professional: These are issued by the Dutch Immigration and National Service (IND). You can also get a residence permit that includes the endorsement “Work is freely permitted” or “Arbeid is vrij toegestaan” in Dutch. Either of these two documents will work.

• A long-stay visa: This is called a “machtiging tot voorlopig verblijf,” or MVV for short. It lets you stay in the Netherlands as a foreign worker for longer than 90 days. It is required for any self-employed person working in the Netherlands.

Business registration in the Netherlands

To work as an independent contractor in the Netherlands, you’ll need to choose a legal structure for your business. Some of the most popular models include:

• Sole proprietorship (eenmanszaak): A simple structure that is ideal for independent, individual contractors. You have full control of the enterprise, although there is no legal separation between you (the owner) and the business; you are personally responsible for all its debts and liabilities. It can work well if you don’t or can’t hire employees under you, such as if you’re simply providing a service to a company or working in a contract role.

• Commercial partnership (vof): A simple partnership agreement. Again, there is no legal separation between the individual and the business; you and your partners are personally responsible for any debts and liabilities.

• Limited partnership (cv): Similar to a commercial partnership but for those who are short on capital or need a financial backer, such as an investor. The financial backer becomes part of the business and is a “limited” partner. They have less of a say in business matters but also less liability for debts since their main role is funding the company.

• Private limited company (bv): A formal, legal entity that is separate from you, the individual. All income and losses are attributed to the company as opposed to you personally. So, your personal assets may be protected from creditors or lawsuits.

Each structure has pros and cons, but most self-employed contractors choose the sole proprietorship model since it’s fairly simple to set up and operate. If you’re unsure, the Netherlands Chamber of Commerce (KVK) has a short test you can take to identify the most suitable structure.

If you opt for this model, you’ll need to choose a name and register your business with the KVK. You can fill in the forms online, but to finalize your registration, you must make an appointment at your local KVK office.

Once this step is complete, you will receive a Standard Business Classification (SBI) code. This code is based on your business activity and can influence your insurance premiums, bank loan eligibility, and permit requirements.

The KVK will also inform the Tax and Customs Administration that you are now self-employed.

How do I get paid as an independent contractor in the Netherlands?

As an independent contractor, it’s on you to handle your invoices and payment collection. Unfortunately, this means billing each client individually and collecting payment through their preferred payment method — which can be inefficient and time-consuming.

Some of the most common ways to collect payments include:

• Bank transfers

• Direct deposits

• Paper checks

• Money orders

• Virtual wallets

• Digital transfer services like PayPal and Wise

These methods all have pros and cons. For instance, bank and digital transfers can be quick but often come with hefty service fees. And if you have clients in other countries besides the Netherlands, the payment collection process can be even more complicated.

Alternatively, you can use a trusted solution like Remote. Our platform is a simple, secure, and reliable way to get paid quickly in euros — and with no hidden fees. Learn more about how our platform can help.

Independent contractor taxes in the Netherlands

As a self-employed contractor, you’re also responsible for paying your own taxes and social contributions. Like most countries, the Netherlands has a progressive income tax rate that indicates how much you will owe.

Here are the tax rates based on taxable income for 2024, keeping in mind that the Dutch government may adjust these each year:

If you are a sole proprietor, you pay income taxes on your business profits (inkomstenbelasting).

You must file your tax return before May 1 using your tax ID; the Tax and Customs Administration will then calculate how much you need to pay based on your taxable income. The KVK also provides a handy tax calculator (in Dutch) to help you generate an estimate.

As for local taxes, the Netherlands has none. Filing is a little easier since you only need to file your return with the Dutch national government. Even if taxes are at the high end, it’s at least simpler to track your tax forms during the Netherlands tax season.

You are also required to make health insurance contributions to the state (ZFW), even if you are already making private health insurance contributions. This is calculated and paid as part of your income tax.

Everyone in the Netherlands, including self-employed people, must also pay into several national insurance schemes. These are similar to the Social Security system in the US, providing a fixed income to those in retirement and other situations where they cannot work.

Employers collect these amounts from employees. As a self-employed person, however, you must calculate what you owe and include this in your income tax payments.

The Dutch government sets the required amounts yearly. That said, various circumstances can impact how your national insurance payments work for you. The Dutch government has more information on its website.

On the plus side, you may be eligible for several tax breaks. You can claim a sizeable entrepreneur allowance (ondernemersaftrek) in your tax return if you:

• Work for your company for at least 1,225 hours per year (800 hours if you have a long-term occupational disability)

• Spend more than 50% of your working time working for your company

As in most countries, you can also claim deductions for multiple business expenses, such as:

• Insurance premiums

• Advertising and marketing costs

• Education and training

• Uniforms and equipment

• Travel costs

VAT information for independent contractors in the Netherlands

In the Netherlands, almost all businesses must charge value added tax (VAT), regardless of their legal structure.

When you register your business, the Tax and Customs Administration determines your VAT obligations. In most cases, you will need to charge clients at the standard Dutch VAT rate of 21%, although some goods and services are charged at a lower rate of 9%.

Some goods and services are exempt from VAT entirely, such as:

• Healthcare services

• Financial and insurance services

• Educational services

• Sports organizations and clubs

• Care services and home care

If your annual turnover is less than €20,000, you don’t need to charge VAT. Note, too, that if you are supplying goods or services to clients outside of the Netherlands, different VAT rules apply.

Liability considerations for independent contractors in the Netherlands

As a sole proprietor, you are personally liable for finance and tax debts, which means your private assets can be forcibly used to settle your business debts. Many independent contractors purchase liability insurance to help mitigate this risk.

When starting as a sole proprietor, the KVK recommends taking out several types of insurance, including business liability, professional indemnity, and disability insurance.

It’s also important to cover yourself when drafting and signing business or employment contracts with clients. Our legal experts can provide you with fully compliant employment contract templates, for both Dutch and international clients.

Accounting requirements for independent contractors in the Netherlands

As a sole proprietor, you do not need to publish financial statements. However, you are required to keep business records for at least seven years, including:

• Invoices

• Transaction statements

• Cash flow records

• Business contracts and correspondence

• Time tracking records (you will need this information to claim the entrepreneur's allowance)

• Travel records

You can manage your bookkeeping records digitally or on paper. You can also discuss how detailed your record keeping needs to be with the Tax and Customs Administration.

The dangers of contractor misclassification in the Netherlands

As we’ve mentioned, independent contractors are classified differently to employees. Many of the protections and benefits that part-time and especially full-time employees enjoy don’t typically apply to contractors.

As a result, companies may deliberately misclassify you to circumvent their legal obligations (known as false employment), such as Social Security contributions for national and employee insurance programs. At other times, it may happen accidentally.

In the Netherlands, the Tax and Customs Administration regularly checks working arrangements. If they suspect false employment — intentional or otherwise — you and your client can both receive fines and penalties.

Furthermore, the employer may owe back payments of unpaid taxes and Social Security contributions for the employer. They could also lose tax deductions or benefits.

An employee can seek compensation for benefits and protections they should’ve received if their employer misclassified them as a contractor.

As an independent contractor, you can work with your clients to ensure this doesn’t happen. Discuss your role and responsibilities with them, and review the working arrangement regularly.

If you’re still not sure what you should be classified as, you can contact the Tax and Customs Administration to draft an agreement. The Dutch Tax Office created a model agreement that’s free to use so that you and your employer can more easily ensure proper employee classification.

If your working relationship changes over time and you become more integrated into a client’s company, you can ask to be converted into an employee. Depending on your workload, you can negotiate a part-time or full-time employee role.

Use our Contractor Compliance Checklist to avoid misclassification

Work through this checklist to help determine if a new hire should have a contractor or employee relationship.

Download

How do I ask the company I’m working with to convert me to an employee in the Netherlands?

Open a dialogue with your client and carefully discuss the risks and benefits of moving to an employer-employee relationship. In particular, be clear about how it can benefit both parties — not just you.

You can even suggest the help of a third-party solution, such as Remote, to ease the transition. Our global employment services help both parties stay compliant by taking care of key HR functions (like payroll management and benefits administration) in line with Dutch law. Remote can help even if your client isn’t based in the Netherlands.

Note that the law around misclassification is due to change in 2025 and will supersede the existing Employment Relationships Deregulation Act (DBA). The new legislation aims to create a fairer balance between self-employed contractors and employees and provide more clarity on working arrangements.

4 ways Remote makes life easier for contractors and their clients

As you can see, there’s a lot to take on board when setting up as an independent contractor. Remote can help you with many of these challenges, allowing you to focus on growing your business and delivering to your clients. Here’s how:

1. International payments in countries around the world

Navigating all your clients’ different invoicing, approvals, and payment systems can be complicated and time-consuming. Manual methods of invoicing and collecting payments can increase the risk of fees, errors, and delays.

Remote gives you access to a highly secure, streamlined dashboard that makes invoice management and international payments cost-effective and efficient. Our platform makes getting paid in euros hassle-free, without any hidden fees.

2. Localized in-app contracts and advice

When you draft employment contracts or independent contractor agreements for your clients, you run the risk of non-compliance with local labor laws — especially when working with international clients. Remote offers localized contracts tailored to Dutch employment laws, ensuring that you stay compliant. Our legal experts can also provide guidance on complex issues, such as local classification and intellectual property protections.

3. Invoicing automation

With Remote, you no longer need to rely on spreadsheets and other manual tools to invoice for payments; we remove many inaccuracies and delays caused by archaic processes and manual management. Our platform lets you create invoices, submit them for approval, and subsequently get paid in your local currency without switching to any other tool or software.

4. Tax management

Tax management is notoriously complex work. Remote helps you quickly and efficiently manage your taxes by compiling data about your self-employment income based on your invoices and payments received.

Setting up as an independent contractor in the Netherlands

There you have it — you now know how to become a freelancer in the Netherlands.

Having the freedom and flexibility to work on your own terms is liberating. But your administrative responsibilities can distract from what you really want to do: helping your clients, delivering great work, and collecting invoices.

By using a stable, trusted platform like Remote, you can manage these obligations quickly and efficiently, allowing you to focus on your business goals. Specifically, we can help you:

• Avoid intermediary fees and delays with international client payments

• Draft compliant employment contracts for Canadian and foreign clients

• Enhance your invoice management and avoid manual processes

• Comply with local labor laws regarding work practices

Our platform makes it quick, simple, and seamless to get started as an independent contractor. Learn more about how our expertise can save you time and resources today.