Recruitment in Netherlands

Recruitment in Netherlands: Frequently Asked Questions

What is the monthly cost of using an Umbrella Company in Netherlands? 

Around €350 per month.


What is the cost of a Work Permit in Netherlands?

€ 1,850

How long does it take to get a work permit in Netherlands?

2 to 5 weeks.

What is the estimated net retention in Netherlands for a contractor earning USD 500 per day?

*update pending

What is the estimated net retention in Netherlands for a contractor earning USD 1000 per day?

Assuming the candidate is entitled to the 30% ruling then around 65-70%.

Read more about the work permit process.

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Recruitment in Netherlands can be a challenge, but you don’t have to drown in time-consuming admin just to place a candidate. You can simplify complications by using an Umbrella Company (or “contractor management company”), as long as you pick the right one.

Skip ahead to find out how we can help you place candidates faster, or simply read on to find out more about the specific issues you’ll face.

Placing a new contractor in Netherlands: what are the challenges?


Recruiting in Netherlands generally requires a lot of complex admin duties, and contractors might end up paying too much in taxes or failing to comply with Netherlands tax law. It’s important to know what kind of concerns you’ll be facing.

  • Double taxation: Contractors can incur a tax liability in both their home country and in Netherlands. Many countries have agreements that mitigate this type of issue, but whether or not you can take advantage of them will depend on factors like the length of the contractor’s stay, or the laws of the contractor’s home country. You can learn more about double taxation here (note: this info was written with respect to the UK, but the general concepts will still apply).
  • Withholding tax: If a foreign company is used to provide services overseas, the payments made to that company by the Netherlands client could be liable for withholding tax under Netherlands tax law. Find out more about withholding tax.
  • Individual taxation and tax residency: A contractor’s tax liability will often be determined by his or her residency status in their home country and in Netherlands. Figuring out their tax residency can be difficult and is often tied to the length of their stay in Netherlands (or out of their home country). Read more about tax residency and individual tax liability here.
  • Permanent establishment: Most double taxation agreements limit the scope of taxation in the host country by providing that a business is only taxable in another state if it has a permanent establishment in that state. A permanent establishment is a fixed base such as a branch, office, factory, workshop, mine or oil well. To find out how to avoid permanent establishment and unnecessary tax liability, read more about the issue.

Work permits

Contractors will need to find a sponsored work permit, which can be difficult and may seriously slow the placement process. Additionally, they’ll need a new permit for each new contract, spawning even more paperwork.

See our FAQ to find out more about the cost and processing time of Netherlands work permits.

Why use a contractor management company?

An efficient way to manage these problems is to outsource them to a contractor management company. They’ll act as the contractor’s “employer,” handling all of their invoicing, fees, and social security. As Netherlands tax experts, they also help contractors comply with local tax law while maximising the amount they get to keep.

A quicker, better recruitment process: Working with an Umbrella Company means saving time, effort, and resources. Higher earnings and a smoother transition also make contracting a more attractive opportunity, helping you place candidates more quickly and successfully.

Still, you’ll need to find the right company for you and your candidate.

How to find the right Umbrella Company?

Making sense of the optionsFor free, we match contractors with Umbrella Companies and can help dramatically reduce waiting times. There are numerous Umbrella Companies in Netherlands and each has its own specialties, services, and payment structures. Choosing the right one is crucial, but it can be difficult when you’re facing a bunch of unfamiliar options.

We’ve developed an extensive database of these companies. We can guide you through your options and help connect you with the best company for you and the contractor.

Get in touch: If you want straightforward, honest advice on recruitment in Netherlands, we’re easy to contact. Call, e-mail, or chat with us online - for free.

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Work Permits & Payroll - Frequently Asked Questions


What documentation is required for a Netherlands work permit?

Passport photos, degree/diploma/professional certifications, contract, copy of your passport, police clearance. This list isn’t exhaustive and will depend on such factors as the nationality of the contractor, skill set etc.

What is the work permit process in Netherlands?

The company sponsoring your visa must have the KMR (Knowledge Migrant Ruling) that allows them to hire skilled non-EU/EFTA nationals under a special residence permit. The candidate must provide their documentation: passport photos, degree/diploma/professional certifications, contract, copy of your passport, police clearance. Then the company sponsoring your permit will make the application to the Dutch authorities and once approved the candidate has the visa stamped into their passport in their country of residence.

Can you transfer from a Business Visa to a Work Permit in Netherlands?


Can we organise Business Visas in Netherlands?


How long does it take to process a Business Visa in Netherlands?

5 to 7 days.

How much does a Work Permit cost in Netherlands?


Can nationals of certain countries enter Netherlands without a Business Visa (ex. on an entry visa or visa waiver)?


Yes. All EU national countries.


Skill-set dependent.

What is the monthly cost to run a local payroll in Netherlands?


 Around €350 per month.

How does payroll work in Netherlands?


Your employer (the company sponsoring your visa) pays the candidate on a monthly basis. They deduct social security  - which is approximately 21.2% for employers and 31.15% for employees (up to the first EUR 32 127 of income). They also deduct income tax - which is progressive and varies from 2.35% to 52% pendant on salary level. These deductions are made at source and paid to the Netherlands tax authorities. Candidates are able to offset their taxable income with relevant business expenses. The World Bank estimates it takes employers in Netherlands 64 man days to ensure compliance with payroll and labour taxes each year.



Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

Prishen Pillay,Global DBA Operations Lead

Shell International Trading & Shipping