How can I get a Dutch bank account?
Having a bank account in the Netherlands makes life easier. The Dutch government requires for highly skilled migrants that their salary is paid into a Dutch bank account.
It is important that you always have access to financial means, without having to rely on social security. That is why it is necessary to open a Dutch IBAN bank account. You can open a bank account online, for example at Bunq bank.
When is payday?
Your salary is deposited into your bank account on Friday each week. Before we can pay your salary you will need a social security number (BSN). You will receive your first salary approximately 6 to 8 weeks after the start of employment. During those weeks prepayments will be made to your bank account. When you have a BSN-number we will process the hours and payslips, deduct the prepayments and pay the rest of the wage to you.
The 30% ruling & taxes in the Netherlands
What is the 30% ruling?
The 30% facility (or 30% ruling) gives the employer the possibility to grant 30% of the salary tax-free. These costs do not have to be substantiated. The application of the 30% facility will result in a higher net income. The 30% ruling is the most important tax benefit for expats in the Netherlands. Once granted, it allows employers and employees to benefit a maximized NET PAYE. By using the 30% ruling, you will only have to pay tax over 70% of your gross salary. We will assist, apply and communicate with the Dutch tax authority on your behalf from start to finish.
What are extraterritorial costs?
Moving to another country is a costly adventure. These costs are considered as extraterritorial costs by the Dutch government.
The employer may decide to compensate you for the costs mentioned above. To avoid complicated administration issues the 30% facility (also known as the 30% ruling) can be used. The maximum duration to benefit from the 30% ruling is five years.
What are the conditions for the 30% ruling?
- There must be an employment contract.
- The employer has recruited the employee from a different country, or the employee has been sent from another country to the Dutch branch.
- The employee has, in the two years before the first working day in the Netherlands, lived for more than 16 months outside the Netherlands, at more than 150 km from the Dutch border. The employee has to provide proof to the tax office.
- The employee has specific expertise.
- The Tax and Customs Administration has issued a decision which states that you may apply the 30% facility.
- During the term of the 30% facility, an employee must receive an annual tax salary that at least corresponds to the established salary standard. This standard applies to both full-time and part-time employment. Upon commencement and termination within a calendar year, the 30% facility is calculated pro-rata.
Do I need to pay taxes while living in the Netherlands?
The government of the Netherlands gets most of its revenue from taxes. The Ministry of Finance (Ministerie van Financiën) is responsible for the implementation of national tax legislation, whilst the Tax authorities takes care of the actual execution of the legislation. If you earn money whilst living in the Netherlands, you are required to pay taxes. You do not need to pay taxes in your home country while you are a Dutch resident.
Recovering part of your taxes
Tax is withheld on your wages or benefits. This is automatically calculated by the salary software program when the hours are processed. Depending on your personal circumstances, you may be able to recover part of that tax. For example if you have children, study, or have not worked all year. Or if you lived in the Netherlands for only part of the year and you received wages or benefits.
I think I paid too much income tax and want to find out if I can get a refund, what should I do?
Tax is withheld on your wages or benefits.This is automatically calculated by the salary software program when the hours are processed.
Depending on your personal circumstances, you may be able to recover part of that tax.For example if you have children, study, or have not worked all year, or if you lived in the Netherlands for only part of the year and you received wages or benefits.
If you think you might have paid too much taxes and want it to be checked, you can contact us, we can put you in touch with an external tax advisor who can have a look at this for you. You must pay the costs of that consultant yourself.
General cost of living in the Netherlands
There are a number of ways you can reduce your cost of living. We recommend you keep in mind the following tips when living in the Netherlands: