Has anyone moved to the Netherlands to work remotely?

Last activity 23 February 2020 by Cynic

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understandingtaxrulesMember19 February 2020 23:38:09

Hi, I'm moving to the Netherlands very soon to be with my partner. I have a full-time job in the UK as a researcher, which my employers are happy for me to do remotely. I'm trying to figure out my tax liabilities: it seems a bit complicated, because I'm not really a 'posted' worker (my employer just doesn't care where I work from), but I'm also not really 'cross border', because I'll mostly be working from home in the Netherlands, and travelling back to the UK occasionally for work. I'll be paying full UK taxes and National Insurance and am happy to continue to do that if its the easiest option. I would much prefer not to have to ask my employer to submit documents to HMRC saying I'm no longer resident, but would do so if that's the only legal way to do this properly.

Has anyone else been in this position? Can I register as a resident in the Netherlands and just continue to pay my tax in the UK, as long as I sort out health insurance here? Or am I liable for other taxes, non income related? Are there any other requirements I need to be aware of? I have dual nationality, British and another EU country, if that makes any difference, and the contract is for another year and a bit, with no realistic prospect of continuing after that - at which point I'll hopefully find work in the Netherlands.

Thanks!

CynicUK / Netherlands Expert20 February 2020 07:37:00

7633

Hi and welcome to the Forum.

You can't do what you're hoping to do. Where you are assessed for taxes is determined by where you live; the moment you move to Holland with the intention of "being with your partner", from that date you are liable for all Dutch taxes for the whole current tax year. The moment you "register", the Belastingdienst (Dutch taxman) will know all about you and the Dutch process will begin. Dual nationality won't help, tax is always a national matter and nothing to do with the EU.

There is a double taxation agreement in place which protects you from paying twice, but this only applies to income taxes; the Dutch have additional social taxes (27% of income) on your worldwide income and they will assess that on the whole Dutch tax year (Jan > Dec); we're already 2 months into the 2020 tax year, so assuming you move at this month end, you will be liable for 27% of 2/12 of your gross earnings already.

There are also Dutch labour laws which your UK contract will not cover you for (holidays, sick pay, holiday pay, employment protection). One potential way around all this is to approach the Dutch employment agencies (uitzendbureaus), some offer contractual services where your current contract is switched to them in the Netherlands, so you then have a Dutch work contract and they will cover the legal bits, pay all your taxes etc - but these are expensive and it will depend if your boss is willing to pay. Another potential way is to set yourself up as a business in the Netherlands and then work as a contractor for your current employer.

You say your partner is already in the Netherlands; get him/her to do some research on your behalf, go around the Uitzendbureaus and ask about novation of contracts, contact the Kamer van Koophandel and ask about setting up a business in the Netherlands.

I did what you're proposing (a few years ago now) - I got hammered for tax.

Hope this helps.

Cynic
Expat Team

understandingtaxrulesMember23 February 2020 15:57:39

Hi, this is so helpful, thank you! We've started to make enquiries and have had some useful responses from employment agencies

CynicUK / Netherlands Expert23 February 2020 19:38:30

7633

Hi again.

Good news. Please come back and let us know how you get on.

Cynic
Expat Team

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