Hire in Netherlands

Typical time to hire

1-3 weeks for contractor, 3-6 weeks for full-time

Entity requirement

Dutch BV (besloten vennootschap) is the standard. Registration at KvK (Kamer van Koophandel).

EOR available

Yes, from $399/employee/month through a Corpshore entity

Contractor of record

Yes, from $39/worker/month

Standard workweek

36-40 hours (36 common in public sector and under collective agreements)

Maximum weekly hours

48 hours

Minimum annual leave

20 days (4x weekly working days). Most collective agreements offer 25-30 days.

Public holidays

8 per year

Maternity leave

16 weeks (4-6 before + 10-12 after birth), fully paid up to daily maximum

Paternity leave

1 week fully paid + 5 weeks at 70% (geboorteverlof, since 2020)

Notice period

1-4 months (employer), 1 month (employee). UWV permission or court dissolution required for employer-initiated termination.

Severance

Transitievergoeding: 1/3 month per year of service (no cap on years, capped at EUR 94,000 or one annual salary, 2024).

Probation

1 month (contracts under 2 years) or 2 months (indefinite contracts or contracts of 2+ years)

Overtime rules

No statutory overtime premium; depends on individual contract or CAO (collective agreement). Working Time Act caps hours.

Income tax range

36.93% (up to EUR 73,031) and 49.50% above

Corporate tax

19% (up to EUR 200k) and 25.8% above

Social contributions

Employee: social insurance premiums (~27% included in tax brackets). Employer: ~18% for social contributions.

VAT / GST

21% (standard); 9% reduced (food, books, medicine); 0% on exports

Tax year

Calendar year (Jan-Dec)

Treaty network

Over 90 tax treaties

Worker classification

The Netherlands has been grappling with the ZZP (self-employed without personnel) debate for years. The DBA (Deregulering Beoordeling Arbeidsrelaties) law replaced the old VAR system. A new bill is expected to clarify the definition of employment relationship.

Data protection

GDPR + UAVG (Uitvoeringswet AVG). Autoriteit Persoonsgegevens enforces. The Netherlands has been active in enforcement, particularly around cookie consent.

Right to work

EU nationals: free movement. Non-EU: work permit (TWV) or combined residence/work permit (GVVA). Highly skilled migrant scheme (kennismigrantenregeling) is popular for tech hiring. 30% ruling provides tax benefit for qualifying expats.

Non-compete

Enforceable but courts apply strict proportionality. Since 2015, non-competes in fixed-term contracts require written justification of substantial business interest.

Collective bargaining

CAO (collectieve arbeidsovereenkomst) system covers ~80% of workers through sector-wide or company agreements. Works councils (ondernemingsraad) mandatory for 50+ employees.

SEPA Credit Transfer is the standard payroll method. iDEAL (bank-based payment) is the dominant consumer payment method. The Netherlands has one of the highest digital payment adoption rates in Europe.

• The 30% ruling allows qualifying expats to receive 30% of their salary tax-free for up to 5 years (reduced from 8 in 2024)
• Dutch termination is heavily regulated: employer needs UWV permission (economic reasons) or court approval (personal reasons)
• Amsterdam is a major European tech hub and the home of Booking.com, Adyen, and many global tech companies' EU HQs
• English proficiency is near-universal in professional settings, making the Netherlands a top destination for international teams