Deciding to become a freelancer in the Netherlands is tempting since you’ll gain work flexibility and enjoy the advantage of being your own boss. As a freelancer in the Netherlands, you’ll need to take care of a few administrative details. These include:
The Netherlands Chamber of Commerce KVK requires freelancers and self-employed professionals to register as a sole proprietorship or as a private limited company. The country allows people to work as sole proprietors whether they live in the Netherlands or are based in a different country.
Freelancers in the Netherlands are referred to as zelfstandige zonder personeel, or ZZPers, which means that you’re self-employed and don’t have any workers employed by you. When you set out to register, keep in mind that there are requirements that you must meet.
The KVK usually asks any one wanting to register as a ZZPer the following four questions:
If you can answer yes to all four questions with yes, then you can register with KVK.
In addition, you’ll need to have a residence permit as well as documents confirming your address. You’ll also need to select a name for your business and set up a work area. You may be eligible to work from your residence. Be sure to review whether it’s viable or possible for you to work from your home.
If you aren’t a citizen of the EU, plan to apply for a temporary residence permit and a permanent one. If you’re beginning an innovative start up, then you may need to apply for a start up visa.
Once you have a business name and have made arrangements for a work location, register your freelance business with the country’s Chamber of Commerce.
When starting a freelance company, it’s a good idea to write out a business plan, one that outlines your strategy. Include details about forming your freelance business as well as the structure that you want to use. Decide what you plan to sell or create, who you’ll target as clients and how you’ll finance your company. You’ll also want to consider whether there is a need for what you’re offering on the Dutch market.
Freelancing in the Netherlands means that you’ll be your own boss, so it’s a good idea to sign up for AOV, also known as disability insurance. This will protect you if you become sick or injured. You should also set up your own pension program to ensure that you’re able to retire.
To start a freelance company, you’ll need to visit the KVK website to complete the eenmanszaak form. The form is available in both English and Dutch, however when adding text into the form fields, such as providing a business description, the text must be in Dutch.
After completing the form, you’ll be ready to make an appointment to visit your local KVK. Be sure to bring your completed form, the address of your business and a valid identification. Keep in mind; if your business address is different from your personal registered address you should bring the rental agreement for the business address. For your identification, you can use your passport or a residence permit. The registration fee to open a business at the KVK is €82,25 and must be paid by either debit or credit card on site.
Once you’re registered, you’ll receive a KVK number that identifies your business. You’ll need this number for your company invoices and other documentation.
When you register with the KVK, you’ll automatically also be registered with the Netherlands Tax Administration. When preparing your registration you submit information, which the KVK forwards in digital form to the Tax Administration. This triggers a letter of confirmation for your registration with the Tax Administration and after around 10 working days, you will receive a notification from the Tax Administration with your BTW number. This is your VAT number.
The Dutch tax office requires a value added tax on top of any product or service sold within the Netherlands. Some goods and services are exempted from VAT so make sure you look into this before offering your services. Once you become a freelancer in the Netherlands, you’ll need to add the VAT to your product or service. The VAT is typically 21% or 9%.
When you send a payment invoice to your clients for your products or services, simply add the additional VAT percentage on top of your invoiced total. When the invoice including the VAT is paid by your client, set the VAT amount aside. The tax office will expect you to pay this tax four times a year using the VAT declaration form.
Each quarter, you or your financial manager will need to figure out the amount of your VAT declaration and send your VAT to the tax department. You can reduce the amount that you owe with business-related deductions like equipment for your work, the cost of transportation or other materials.
If you fail to input your VAT declaration when it’s due or if you don’t make your payment on time, you will be charged a fine.
Check out Xolo guide for details on VAT obligations for freelancers in the Netherlands.
Once you begin earning income as a freelancer, completing your annual income tax return will become a bit more complex. This is because you’ll need to calculate your taxes on your own or with the help of a personal accountant.
There are a few tax breaks available for those who start a new business. These include deductions for being self-employed and getting started. You’ll also be eligible for SME profit exemption, a general tax credit and a labor tax credit.
To find freelance clients in the Netherlands, be sure to activate networks like LinkedIn and talk to everyone you know about your freelance business. Talk to your friends, previous business acquaintances, prior employers and even relatives.
Join a co-working space or ZZP community, one that speaks the same language as you or works in your field. You should also join a freelance community. This will make it easy for you to promote your products or services as well as meet people. It could also work to motivate you.
Attend local business Meetups. Meetup is a great way to connect with other humans in your area. The network makes it easy for you to meet others in your field and collaborate. You can join a Meetup group or start a new one.
How much can you earn as a freelancer in the Netherlands? It depends very much on your field of expertise and your experience but here’s a great resource for you to determine your approximate hourly rate as a freelancer.
To make freelancing in the Netherlands a breeze we’ve tailored our invoicing and business administration platform to ZZPers. With an all-in-one dashboard, you can manage your expenses and income, issue invoices to your international clients, meet and connect with fellow freelancers and source new projects to work on. And the beauty of it all is that you can do all of this from wherever you are.
Make managing your business as a freelancer easy by signing up for Sole Proprietorship in the Netherlands. This registration will help your freelance business move forward. Let Xolol deal with the daunting parts of getting your business set up. With Sole Proprietorship, you’ll save tons of times when it comes to calculating and filing your taxes as Xolo has a team of accountants helping you manage your bookkeeping and tax reports.
Become your own boss and open a freelance business in the Netherlands. As a freelancer, you’ll be able to work at your own pace and during hours that are best for you. Become a ZZPer today!