As remote work expands, more professionals live in one country while working for a company based in another. For those living in the Netherlands and employed by a foreign employer, the setup can be both convenient and challenging.

The Netherlands is a popular destination for remote workers and expats, thanks to its high quality of life, excellent infrastructure, and strong legal protections. However, balancing foreign employment with local compliance obligations, such as taxes and social security, is crucial.

In this guide, we’ll address the key considerations—legal, tax, and compliance—when living in the Netherlands while working for a non-Dutch employer. We’ll also explore how an Employer of Record (EOR) can help you stay compliant while keeping your foreign job.

Can you live in the Netherlands while working for a foreign employer?

Yes, living in the Netherlands while employed by a foreign company is legally possible. Dutch citizens, EU/EEA nationals, and non-EU professionals each have different rules to know. EU and EEA nationals, for instance, do not need a visa or work permit to live and work in the Netherlands, regardless of their employer’s location.

Non-EU citizens, however, may need to meet certain residency and work permit requirements, depending on the duration of their stay and the nature of their employment.

A key consideration is where income taxes and social security contributions must be paid. Although you may be on a foreign company’s payroll, residing in the Netherlands often triggers local tax obligations. Understanding these rules helps you avoid penalties and ensures that you have access to Dutch social benefits, such as healthcare and pensions.

Taxation and social security considerations

When living in the Netherlands while working for a foreign employer, Dutch tax law generally applies if you are a fiscal resident. This means you must pay Dutch income tax on your worldwide earnings, even if they are paid by a non-Dutch company.

Key factors include:

• The 183-day rule: If you spend more than 183 days in the Netherlands during a calendar year, you are typically considered a resident for tax purposes.
• Social security contributions: In most cases, Dutch social security applies if you live and work in the Netherlands, ensuring you are covered for healthcare, unemployment benefits, and pensions.
• Tax benefits for expats: The Netherlands offers certain tax advantages, such as the 30% ruling, which can help offset some of the additional tax burden for foreign employees living in the country.

Work permits and visas (for non-EU nationals)

If you are a non-EU national looking to live and work in the Netherlands, obtaining the appropriate visa and work permit is the first step. Unlike EU/EEA/Swiss nationals who can live and work freely in the country, non-EU citizens must meet specific legal requirements before they can begin employment.

Visa requirements and work permit options for non-EU professionals

For most non-EU professionals, entering the Dutch workforce means securing a work visa and permit. Several pathways are depending on your qualifications and the nature of your job. Common options include:

• Highly skilled migrant permit: A streamlined visa for talents with expertise in their fields, often arranged by employers recognized as “sponsors” by the Dutch Immigration and Naturalization Service (IND).
• Intra-company transfer (ICT) permit: For employees transferring from a non-EU office of their company to a Dutch branch.
• Startup and entrepreneur permits: For individuals planning to establish a business or join an innovative startup in the Netherlands.

Each route comes with its own set of eligibility requirements, processing times, and documentation needs. Generally, a recognised sponsor (such as a Dutch employer) must handle most of the application process on behalf of the employee.

Can a foreign employer sponsor a work visa in the Netherlands?

In cases where a foreign employer lacks a legal entity in the Netherlands, they cannot directly sponsor a Dutch work visa. Instead, they must rely on local entities or trusted partners to handle compliance and sponsorship.

This is where an Employer of Record (EOR) comes in. The EOR acts as the local employer, arranging all necessary permits and ensuring compliance with Dutch regulations while the foreign company maintains control over the employee’s day-to-day work.

Difference in rules for EU/EEA/Swiss nationals vs. non-EU nationals

EU/EEA/Swiss nationals enjoy the freedom to live and work in the Netherlands without the need for work permits or special visas. For non-EU nationals, however, the process is more regulated. Before beginning employment, they must obtain a residence permit, a work permit, or a combined residence/work permit.

These permits typically hinge on the employer’s status as a recognized sponsor and the individual’s ability to meet certain salary thresholds or demonstrate unique skills.

In summary, non-EU nationals face more complex procedures and must ensure that their employment arrangements comply with Dutch immigration and labour laws. Employers and employees should seek expert guidance to understand these requirements successfully.

Employment law and compliance risks

Even if your employer is based abroad, you are still subject to Dutch employment law if you live and work in the Netherlands. This includes adherence to minimum wage requirements, holiday entitlements, and working hour regulations. Employers and employees must be cautious to avoid:

• Misclassification: Classifying employees as independent contractors can lead to significant penalties if the arrangement does not meet legal standards. Read more about worker misclassification in the Netherlands.
• Non-compliance: Failure to withhold and remit the correct taxes or social security contributions can result in audits, fines, and reputational damage.

How can an Employer of Record can help?

An Employer of Record (EOR) simplifies the complexities of working for a foreign employer while living in the Netherlands. Essentially, the EOR acts as the local, legal employer on behalf of the foreign company. This arrangement enables professionals to remain legally employed by their overseas employer without requiring the foreign company to establish a Dutch legal entity. Instead, the EOR takes care of all local compliance requirements, ensuring the professional remains fully aligned with Dutch regulations.

Even if a company is based in a non-Dutch jurisdiction, a Dutch-compliant EOR can bridge the gap. The EOR takes on administrative and legal employment responsibilities in the Netherlands, such as registering employees with local tax authorities, withholding taxes, and making social security contributions.

For professionals residing in the Netherlands, the EOR ensures they have a valid employment contract that meets Dutch labour laws, providing both legal security and financial clarity.

An EOR offers a range of advantages for both professionals and foreign employers. Key benefits include:

• A Dutch-compliant employment contract: The EOR issues a local contract that adheres to Dutch labour regulations, protecting both the professional and the foreign employer from compliance risks.
• Payroll processing and compliance: The EOR handles payroll on behalf of the foreign company, ensuring accurate tax withholding, timely salary payments, and proper social security contributions.
• Access to Dutch employment benefits: Through the EOR, professionals gain access to the same employment benefits as local workers, including pension contributions, healthcare coverage, and insurance.
• Visa and work permit support: For non-EU nationals, an EOR can assist in learning the complex processes of obtaining visas and work permits, further simplifying the professional’s ability to reside and work legally in the Netherlands.

By partnering with an EOR, foreign employers can continue working with their Dutch-based professionals without the need to set up a local entity, while the employees benefit from a compliant, streamlined, and secure working relationship.

For example, a Dutch professional receives a job offer from a Swiss company but prefers to remain in the Netherlands. Since the Swiss company does not have a Dutch legal entity, they partner with an EOR. The EOR hires the professional locally, handles all tax withholding and social security contributions, and ensures that the employment arrangement fully complies with Dutch regulations. The professional continues working for the Swiss company without any legal or administrative headaches.

Don’t hesitate to make a move

Living in the Netherlands while working for a foreign employer is entirely feasible, but it requires careful attention to legal and tax obligations. Compliance is key to employment contracts, payroll taxes, social security, and residency permits. Contact us today, partnering with a trusted Employer of Record can help you stay legally employed, access local benefits, and avoid compliance risks.