Living and Working in Holland

INTRODUCTION

The Netherlands, on the coast of the North Sea, is twice the size of New Jersey. Part of the great plain of north and west Europe, the Netherlands has maximum dimensions of 190 by 160 mi (360 by 257 km) and is low and flat except in Limburg in the southeast, where some hills rise up to 322 m (1056 ft). About half the country's area is below sea level, making the famous Dutch dikes a requisite for the use of much of the land. Reclamation of land from the sea through dikes has continued through recent times. All drainage reaches the North Sea, and the principal rivers—Rhine, Maas (Meuse), and Schelde—have their sources outside the country.

Entry and registration documents
You must have a full EU/EEA passport or identity card. EU/EEA citizens are free to enter the Netherlands for up to 3 months to look for work or to set up in business, subject to completing entry formalities as set out below. Visitors, even if looking for work, may be asked to prove that they have adequate means for the duration of their stay and that the cost of their return journey is secured. Should you require further information about immigration to the Netherlands please contact the Netherlands Embassy in your own country before you leave.

Registration Procedure
The steps should be followed in the sequence shown below, but do check office hours in advance as morning only registration is common, and as yet there is no "EU citizens" desk, long queues form especially in the larger city offices.

First Step - Registration
EU/EEA citizens must register with their local Foreign Police registration office (Vreemdelingenpolitie) within 8 days of arrival. If you are intending to look for work (and are without a work contract) and want to take advantage of the free movement of labour within the European Union then you must simply present your passport at the Foreign Police Registration Office. With a (non temporary) work contract, you must present your passport, the contract, two non-machine passport type photographs and the appropriate fee. In certain cases those with temporary contracts will have to report back for renewal, and another fee may be payable. (The permit issued on proof of acceptable work contracts will more than likely be a magnetic card with your photograph affixed).

Second Step - SOFI Number
If you are a first time jobseeker in the Netherlands you will need to obtain a SOFI number (Social Welfare/Taxation) from the local Tax Office (Belastingdienst). You will need to take your passport together with the police permit from Step 1. If you have worked previously in the Netherlands the old SOFI Number may suffice.

Third Step - Residence Permits
If you intend to look for work for more than 3 months then you must apply for a residence permit (Verblijfsvergunning). This can be obtained from the Town Hall or community office - "Stadhuis" or "Gemeente". You can ask the Police at Step 1 if in doubt about the location and office hours of items 2 and 3. You will need to present your passport, police permit, SOFI number, two photographs, a full version of your birth certificate, and in some cities (ie Amsterdam) proof from your landlord that you have a permanent address. NB Local Authorities are much more independent of Central Government than may be the case in your country so allow for variations in procedures. Don't forget to deregister with the Police and Town Hall when you are leaving the country permanently!

Important source for information: Chamber of Commerce (Kamer van Koophandel) for the addresses see: Gouden Gids or local telephone directory.
Useful addresses: Ministerie van Justitie, Postbus 3016, NL-2500 GC DEN HAAG. Tel: 31-70 370 3124 or 3144, Fax: 31-70 370 3134

LIVING IN THE NETHERLANDS

Accommodation
Availability of housing is a huge problem, especially in the larger cities, and also in university cities like Amsterdam, Utrecht, Leiden and Groningen. Overall, 43% of accommodation is privately owned and 57% is rented. Houses make up 70% of all dwellings (63% are private and 37% are rented) compared to 30% apartments. The urbanisation degree is 90%.There is an average housing shortage of 100.000 houses.
Renting:
Accommodation to rent is often advertised in local newspapers. Shop/supermarket notice boards and word of mouth are also important sources of information. Otherwise contact the Netherlands Estate Agents Federation (NVM).
The Wednesday edition of the daily newspaper De Telegraaf has a lot of accommodation adverts.
Buying:
Information can be obtained from newspapers and estate agencies. Advice is available on mortgages from banks and building societies. There are three categories of private houses: state-subsidised private houses (lower incomes); private houses with a government contribution; private houses without any grant.
The state-subsidized private houses (sociale koopwoningen) are designed for people with modest incomes. The maximum sum of income is FL 58,000 yearly and the maximum house price is FL 37.000 (in the provinces North-Holland and South Holland the maximum is FL 47.000). For a maximum of 30 years, a yearly contribution is given. The amount depends on your personal situation. Income tax has to be paid on the contribution and no qualifying period of residence is required.
For private houses with a government contribution (premiewoningen), the same conditions as for state-subsidised houses apply. However, the maximum house price is FL 190.000. But here you qualify for a once-off subsidy of FL 5.000, no income tax is levied and no qualifying period of residence is required.
In the case of private houses without any grants, various mortgage possibilities exist.
For mortgages, contact the Netherlands Association of Mortgage Banks for further information at:
- De Nederlandse Vereniging Van Hypotheekbanken (NVH), Keizersgracht 706
  Postbus 19870, NL-1000 GW AMSTERDAM. Tel: 31-20 5502888, Fax: 31-20 6239748.
- De Nederlandse Vereniging Van Makelaars (Nvm), (Dutch Federation Of Brokers),  

  Fakkelstede 1, P.O. Box 2222, Nl 3430 Dc Nieuwengein. Tel: 31 30 608 51 89, E-mail:   

  nvmcz@nvmorg.nl, Internet: http://www5.nvm.nl

WORKING IN THE NETHERLANDS

The Press
The press and word of mouth are very important mediums for job hunting in The Netherlands. Most Dutch national and regional newspapers carry job advertisements, especially on Saturdays. Examples are De Telegraaf, Het Algemeen Dagblad and De Volkskrant but there are many others including more specialised newspapers, magazines and journals, e.g. Intermediair, a weekly paper for graduates. Check the classified advertisements under Personeel Gevraagd (Personnel Wanted).

Useful addresses: Central Bureau voor de Arbeidsvoorziening, Boerhaavelaan 7, Postbus 883, Nl-2700 Aw Zoetermeer. Tel: 31-79 - 371 2000, Fax.: 31-79 - 371 2099, Koninklijke Algemene Vereniging voor Bloembollencultuur
'Bloembollencentrum' Postbus 175, NL-2180 AD Hillegom. Tel: 31-252-515254.

Employment issues
Remember that employment protection legislation does not extend to work carried out wholly or mainly outside your own country. The terms and conditions of employment are a matter of agreement between the employer and the employee.

Contracts
If you are offered a contract, check carefully the terms and conditions of employment. Make sure you get a translation of your contract in your native language but there is no legal requirement for your Dutch employer to provide this. The local Arbeidsbureau can advise on the acceptability or otherwise of your contract. Check the method and frequency of your pay. Also check your travel arrangements and accommodation and determine if they are to be paid by you or the employer. Be especially cautious of references to "stukwerk" ie piecework payment per item produced rather than per week/month. A two-month probation period is legal in most types of employment, and both parties may terminate the contract without giving a reason during this time.

Legislation
The Dutch government is closely involved with employment issues. Legislation and policy cover income agreements, minimum wages, equal opportunities, maximum working hours, rest periods and shiftwork. Collective wage agreements are common for many sectors of industry. Fringe benefits can include subsidised canteens, savings plans, private pension plans, company cars and crèche facilities.

Dismissal and Termination of Contract
Contact your local AB for general advice but if you feel you are being unfairly treated by your employer you can get subsidised legal advice from any Institute Sociaal Raadslieden or Buro voor, Rechtschulp; the addresses of which can be obtained from any Arbeidsbureau or your local Dutch telephone directory. In some cases, dismissal or termination of contract can result in a residence permit being withdrawn.

TAXATION IN THE NETHERLANDS

Fully discuss your tax position with your employer before accepting a job, so that amounts of tax and national insurance to be deducted at source can be established. To avoid double taxation when more than one country has taxation rights on the same income, the Netherlands has Double Taxation Agreements with many countries. For further advice in your country, contact your local tax office or tax enquiry office.
Resident taxpayers are taxed on their income worldwide; non-resident taxpayers are taxed only on specifically Dutch sources of income. Tax-resident status is based on place of residence (availability of permanent home; where the spouse and children live; and personal and economic relations). Domicile or place of origin (nationality) is not relevant.

INCOME TAX

Individual income tax (inkomstenbelasting) is usually withheld from wages and salary payments. All employers in the Netherlands must deduct a wage tax (wage withholding tax - loonsbelasting) from wages, salaries and other remuneration paid to employees. Income tax is paid on the following: wages; salary; bonuses; other income earned in the Netherlands (e.g. profit, rent, interest, dividends, annuities and pensions); use of car, medical/life assurance paid by employer etc. Tax rates range from 36.35% to a maximum of 60%. Income is subject to tax at graduated rates. These are (for the 1998 tax year):
• 36.35% on the first FL 47.184 (7.1% tax and 29.25% social security contributions)
• 50% tax on income betweem FL 47.184 and FL 56.590
• 60% on taxable income exceeding FL 56.590
A specific tax-free allowance (belastingvrije voet) is available to all taxpayers and is deducted in the computation of taxable income (the general tax-free allowance is FL 8617. For a married person whose spouse has no income the allowance is FL 16.824.
Double taxation occurs when income arising in one country is received by someone resident in another country and is therefore liable to taxes in both. To avoid or alleviate this, the Netherlands has taxation agreements with all the EU Member States, under which each one agrees to give up, or reduce, its tax in certain circumstances.

 

SOCIAL SECURITY

The system of social security in the Netherlands is one of the most comprehensive in the EU. Most social security contributions are automatically deducted from your salary. These general social security contributions form part of the lowest income tax bracket; only 7.1% is tax, while the rest (29.25%) are social security contributions. In addition to these contributions, certain social security premiums on employment income (werknemersverzekeringen) are payable by both employers and employees. The employer makes a contribution of 2% of the employee's salary (overhevelingstoeslag). The "overhevelingstoeslag" is not considered as salary!

Medical insurance is obligatory when you live and/or work in the Netherlands.

From 1 January 2006, the regulations will change with regard to insurance against medical expenses in the Netherlands. A general basic insurance will be introduced, which will be covered by private insurers against medical expenses. These insurers are not allowed to refuse anyone. The nominal premium will be €1,100 per person per year. Children up to the age of 18 are insured free of charge. Anyone earning an income will pay an additional contribution of 6.25 percent, which employees will receive back from their employer. Freelance workers will receive their contribution back through their annual income tax declaration.

Those on a low income have the right to a so-called 'care allowance' (zorgtoeslag) up to a maximum amount of €330 per year.

The basic insurance will cover:

• Treatment by a GP, hospital, medical specialists and midwives
• All costs during admission to hospital
• Dental care for children up to the age of 18. Specialist dental care and dentures for everyone aged 18 years or over
• Prescribed medicines
• Short-term psychiatric treatment
• Prenatal care
• Ambulance transport and care
• Paramedic care, with a maximum insurance set for physiotherapy, speech therapy, occupational therapy and dieticians

Coverage is fairly basic. You are therefore recommended to take out additional cover for the cost of regular dental care, physiotherapy and other long-term treatments. The basic insurance and the additional insurance do not have to be taken out with the same insurance company.

When you live in the Netherlands, you will have to sign on with a General Practitioner (huisarts). You can choose your own GP, but your choice is limited to the neighbourhood in which you live. Most GPs have consultation hours at certain times, for which you will have to make an appointment beforehand.

If a specialist treatment is considered necessary, the GP will refer the patient to a hospital or medical specialist. Medical help by a hospital or specialist will not be given without a referral from a GP! The only exceptions are dental care and treatment by the accident and emergency departments of the larger hospitals.

Useful addresses:

- The Tax Authority (Rijksbelastingen), Stationplein 75, NL-2515 BX The Hague. Tel: 31-

  70-3304000, Fax: 31-70-3890025
- Inspectie der Directe Belastingen Buitenlanders, (Information On Taxation For   

   Foreigners), Peiler 10, Postbus 300, Nl 6440 La Brunssum. Tel: 3145 523 63 63.
- Internationaal Belasting Documentatie Bureau (Ibdb), (Computer Databanks on   

  International Taxation; Loose-Leaf Publications In English With Descriptions Of All

  Countries' Tax Systems), Sarphatistraat 600, Postbus 20237, Nl 1000 He Amsterdam.
  Tel: 3120 626 77 26, Fax: 3120 622 86 58.
- Ministerie van Financiën Nederland, (Ministry of Finance Information Service), Korte   

   Voorhout 7, Postbus 20201, Nl 2500 Ee Den Haag. Tel: 31 70 342 75 40, Fax: 31 70   

  342 79 00, Internet: http://www.minfin.nl/
- Nederlandse Orde van Belastingadviseurs, (Federation of Dutch Tax Advisors),

   Stadhouderskade 14a, Nl 1054 Es Amsterdam.  Tel.: 31 20 641 16 11.
- Svr, Sociale Vezekeringsraad, (Social Insurance Council), Bredewater 12, P.O. Box 100,

   Nl 2700 Ac Zoetermeer.  Tel: 3179 353 02 60, Fax: 3179 353 02 61.
- Vsv, Voorlichtingscentrum Sociale Verzekeringen, (Information Centre Social

   Insurance), Rhijnspoorplein 1, Nl 1091 Gc Amsterdam.
   Tel: 31 20 597 97 97,
   Fax: 31 20 633 23 89.

COPARABILITY OF QUALIFICATIONS

You can get a direct comparison between your qualifications and those recognised in the Netherlands by contacting the NUFFIC (Higher Education). There is a fee of 75 Dfl per diploma page.
Useful addresses: NUFFIC (Higher Education), Department of International Credential Evaluation, Kortenaerkade 11, Postbus 29777, NL-2502 LT Den Haag. Tel: 31-70-426 0260, Fax: 31-70-426 0399.

Pathfinder would like to express sincere thanks to the Employment Service for their assistance in the compilation of this feature. All of the above and much more is available in their booklet “Working in the Netherlands” which is available on request from:
Employment Service, Overseas Placing Unit, Rockingham House, 123 West Street, Sheffield, S1 4ER

 

LEGAL  MATTERS

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