Working for your old employer from a distance, selling cupcakes, offering English-language services – these are all things that some internationals in the Netherlands are doing as a job.

Self-employment or being a zelfstandige zonder personeel (independent worker without employees) can be an attractive option in the Netherlands. One partner might have a full-time job, for instance, and the other might want to make a new start or combine working with other responsibilities.

But be careful, warn the experts at Blue Umbrella, a tax advice company which works with thousands of internationals. The Dutch government is cracking down on what it sees as “fake” self employment so it is important to do things correctly.

“There will be more strict follow ups on whether you have enough clients and are a real entrepreneur,” says a Blue Umbrella expert. “Some people are already experiencing issues with the Belastingdienst tax office, most of them with lower incomes.”

Phantom freelancers

The number of sole traders in the Netherlands tumbled in the last month of 2024 and 21,000 people de-registered in the run-up to a crackdown on “phantom freelancers” from January 1.

The European Commission has advised the country to make flexible contracts and self-employment less attractive because they may make employers less likely to invest in skills training for permanent staff. So now companies will be asked to prove their freelancers are genuinely self-employed, for example able to set their own working time and use their own tools. And self-employed people need to be aware too.

Tax credits

It’s key to make sure that you have enough clients, according to Blue Umbrella. “You have to have more than three clients over the years,” says the tax expert. “There’s one court decision that says if 80% of your income is coming from one of your main clients, that’s good enough. On the other hand, if you have just one client for one or two years, and when that contract ends you have to find a new one, you can have the same risk as an entrepreneur with multiple clients within the year. So it can be over a number of years.”

There are several advantages to being self-employed. There’s an entrepreneur’s tax credit and small business tax credits, which can represent about 20% of your profit. Meanwhile, your employer won’t need to pay premiums that would normally be paid for a regular employee.

One of the obligations, though, is that you will probably have to pay quarterly VAT (BTW in Dutch) – unless you have registered for the small business exemption or are in a number of trades that are exempt such as education. “Go to the Chamber of Commerce and register yourself, and then make sure you do your VAT filings,” says the expert.

Limited company

When is it in your advantage to start a limited business – a BV in Dutch – rather than just operating as a sole trader? “If your income is more than €150,000 then you can think about if it’s wise to switch,” says the Blue Umbrella expert. “If you’re unsure about the revenue, start with a small business and you can always switch to a limited liability company later. There are more costs with setting up a BV, but it can be a good idea if there is a high risk that you are personally liable.”

Although fewer people are setting up their own businesses, it can still be a good idea if you think you will fulfill the conditions. “Maybe someone comes to the Netherlands with their partner, contacts their old employer and want to work at a distance, or want to make cupcakes,” he said.

“There are some people who start a business and have a special Dutch American Friendship Treaty visa.” Whatever your situation, it’s worth getting some expert advice before you start.

Contact Blue Umbrella for cost-efficient tax advice for internationals