Contracting in Amsterdam - new to all this!

jmcwobbles

Hey everyone,

So I've been approached for a contract postion in Amsterdam and am currently going through the interview process. I've never done contracting before so was hoping you guys could help steer me in the right direction in terms of what I need to know or be mindful of??

I know all the usual stuff like no holiday pay, sick pay, health insurance and all that. The rate they're talking about looks quite good so I think I can absorb those losses (am currently employed in Ireland but considering this contract position for a change - and more money )

I just can't get my head around how many different companies are involved - basically the hiring company pays the recruitment agency, who then in turn pay this umbrella company (ITECS) who then pay me. I do have to pay them a monthly fee but they then pay me a salary and handle all my tax returns, and also help out with setting up bank accounts and all that malarkey when (if!) I move. Apparently I do need to go under an umbrella company rather than being self-employed as I need to be an employee to qualify for the 30% rule in Amsterdam which means I would get 30% of my salary tax free.

The projections ITECS have sent me look great, but I'm just sceptical about everything they and the recruitment agency are telling me, so I was just hoping I could get some advice off any contractors out there - and especially if anyone has experience contracting in The Netherlands? Would you recommend contracting in general? Is all this umbrella company business normal? And would working under a contract in The Netherlands have any tax implications here if I got paid into a Dutch bank account and was living there?

Sorry for all the questions but any help I can get would be mucho appreciated

fatboypee

The Umbrella situation is quite normal. The rates you're getting quoted for your take home pay is likely to be good due to the 30% ruling the Netherlands has for specific trades for foreign employees that allows them to never pay more than 30% in tax for the first 5 years of their employment. If you google "30 ruling netherlands" you will see lots of places explaining this.

When I was contracting there, I submitted my expenses to the umbrella management company who managed it all. I claimed everything from tram journies to my bike, to my laptop, everything...

I'm not sure now of the implications of taxation is here now but when I was contracting there I was able to avail of the non-domicile ruling (differnet circumstances), giving me even better benefits on tax (all changed now as far as I know). What I do know is, your best bet is to try to arrange a bank account via the umbrella company as doing it yourself is a nightmare (I gave up in the end).

I'd give my right arm to be heading back, loved it there. Shame there's few jobs going or I'd consider it again. Only downside was accommodation, in Amsterdam is V.expensive. One tip, look to Utrecht if renting. Way nicer city, especially weekends (and only 20 mins to AMS by train).

Good luck with it..

fbp.

jmcwobbles

Thanks fbp!

I was actually over today for a meeting with them, I'd never been to Amsterdam before and had a couple of hours free in the afternoon to wander around - what a beautiful city I love it! Really hope this all works out now, I feel a bit better now that someone has had good experience with an umbrella company - do you mind if I ask what one it was?

I did know about the 30% rule thing, which is pretty sweet

Yeah I have friends who have lived in Utrecht and like it - I'm gonna look around Amsterdam a bit first though, I have another friend who lives there now so can help out with good places to look with good prices etc which is handy.

Fingers crossed now, really hope this all goes ahead!

fatboypee

jmcwobbles wrote: »

Thanks fbp!

I was actually over today for a meeting with them, I'd never been to Amsterdam before and had a couple of hours free in the afternoon to wander around - what a beautiful city I love it! Really hope this all works out now, I feel a bit better now that someone has had good experience with an umbrella company - do you mind if I ask what one it was?

I did know about the 30% rule thing, which is pretty sweet

Yeah I have friends who have lived in Utrecht and like it - I'm gonna look around Amsterdam a bit first though, I have another friend who lives there now so can help out with good places to look with good prices etc which is handy.

Fingers crossed now, really hope this all goes ahead!

Lucky Lucky Lucky !! I'd love to be heading back. Wife would not be but, hey...

The company I used was on the tip of my tongue but cannot place it (at work now so no docs to check up but if i remember, Ill look it up at the weekend). I do recall they were very good, up until the point where I left. Wrapping up my tax affairs was painful as they would not return my mails, calls etc etc.

One great thing when I was there (and I believe its still the same) is, if you're in the country less that (I Think) 182 days (in any one tax year) you can get ALL your paid tax back from the NL government. I was there for 2 years and I got a 10k rebate (had to chase it and used taxpat.com to do it), was delighted !!

Ref renting / living. IMHO use an agency to get a decent apartment. Contracting gives you enough beans to do that and you're above board and legit in doing so as there are rules on renting etc and you could well get rooked! If you're heading out on yer own then Amsterdam is cool but I found it got tedious at weekends. Tourists break yer balls after a while and you find the city is NOT that big and unless you've got a good working social scene, pretty lonely on the weekends. I loved Utrecht as it wasn't as nutty / grubby as amsterdam but each to their own.

Last point, be V.careful of crime. Pretty rife there. I had my apartment broken into valuables stolen (3 locks and a jemmy bar on the door was no deterrent!) and wife was robbed twice on trams (backpack cut open once and purse stolen another time).

Send a PM if you want a heads up on where to go etc.

Lucky Lucky Lucky...

Jim2007

jmcwobbles wrote: »

Hey everyone,

So I've been approached for a contract postion in Amsterdam and am currently going through the interview process. I've never done contracting before so was hoping you guys could help steer me in the right direction in terms of what I need to know or be mindful of??

I know all the usual stuff like no holiday pay, sick pay, health insurance and all that. The rate they're talking about looks quite good so I think I can absorb those losses (am currently employed in Ireland but considering this contract position for a change - and more money )

I just can't get my head around how many different companies are involved - basically the hiring company pays the recruitment agency, who then in turn pay this umbrella company (ITECS) who then pay me. I do have to pay them a monthly fee but they then pay me a salary and handle all my tax returns, and also help out with setting up bank accounts and all that malarkey when (if!) I move. Apparently I do need to go under an umbrella company rather than being self-employed as I need to be an employee to qualify for the 30% rule in Amsterdam which means I would get 30% of my salary tax free.

The projections ITECS have sent me look great, but I'm just sceptical about everything they and the recruitment agency are telling me, so I was just hoping I could get some advice off any contractors out there - and especially if anyone has experience contracting in The Netherlands? Would you recommend contracting in general? Is all this umbrella company business normal? And would working under a contract in The Netherlands have any tax implications here if I got paid into a Dutch bank account and was living there?

Sorry for all the questions but any help I can get would be mucho appreciated

I've never contracted in the Netherlands, but I have spent the last 20 years contracting else where in Europe and I can confirm that your situation is entirely normal for a European contract position!

Concerning Irish taxation, that may prove a bit complicated for the current year as the normal rule is that you need to be out of the country for 183 days, which of course is not possible this late in the year! However all is not lost, if your contract runs for 6 months next year as well, then it might still be possible to claim non residence for the two years! Even in the worst case, you will not be double taxed, tax paid in one country will be some how offset against that paid in the other, so definitely not a reason to pass up an a good opportunity. It is probably best to seek some tax advice before you go, so you know what to expect.

Other things to expect:

- Culture Shock: It's not like home and the people will have a different attitude, but as long as you keep an open mind it will work out OK. Use the internet to do some research on the culture and what to expect.

- More administration: You'll have to register with various bodies and so on, to get residency permit, social security number and so on, but the agency should help you there

- Some places may require a certificate from the police saying you don't have a criminal record (from previous experience: apartment rental, residence certificate and banking comes to mind), so get one from the local Garda before you go: much easier while you're still at home than discovering you need it when you get there.

- As a Dutch resident you will be covered by the Dutch health care system, but I would recommend that you try and find an insurance that will cover your repatriation in the case of serious long term illness - hope it never happens, but it is better to be prepared.

- When you get there, take a basic course in Dutch, it's a good way to meet people in the same situation as yourself and will also helps with the water cooler/coffee corner conversations. In a broader sense it will also help you understand other Germanic languages as well - I've never learned Dutch, but I can usually understand a lot of what they say simply because I understand Swiss-German.

Good luck with that,

Jim
(In Switzerland)

jmcwobbles

Well everyone it's all official I'm heading to Amsterdam! Got the job and signed the contracts this week so heading over at the end of the month

So much to get my head around and sort out, not the least of which is sorting out temporary housing for when I can get there until I can find somewhere more permanent... but I have a few contacts who are helping me out with where to look and all that so hopefully it'll work out - but of course if you guys have any more advice or tips that would be great!

Just wanted to let ye know anyway, woohoo Amsterdaaam here I cooome!

MidlandsM

Congrats!

murphym7

You will have a great time workign in Amsterdam. I have been working in the Netherlands 2 out of 4 weeks for the last 10 months.

One watch out though that I have come accross - the Dutch seem to talk everything to death. I have found decisions can take more time to make than here in Ireland - they like to discuss things a lot - then discuss them some more. Just be patient, they ge there in the end.

Good luck with the job.

jmcwobbles

Thanks for the tip, part of the new job will be identifying and implementing process improvements, and I am very much a "right, that's what we need to do, let's get it done" kinda gal, so I'm already trying to prepare myself for things to move slowly on that front, especially if they discuss as much as you say without actually acting on it. Will be fun trying to get their arses in gear

bunglemark2

murphym7 wrote: »

You will have a great time workign in Amsterdam. I have been working in the Netherlands 2 out of 4 weeks for the last 10 months.

One watch out though that I have come accross - the Dutch seem to talk everything to death. I have found decisions can take more time to make than here in Ireland - they like to discuss things a lot - then discuss them some more. Just be patient, they ge there in the end.

Good luck with the job.

Interesting thread this.
I have been approached about a contract in NL (I'm currently unemployed) but was looking at a Mon-Fri affair due to family commitments.
A few questions then...
Is a hotel/pension a cheaper way of doing it than looking for an apartment ?
What about the logistics of setting up a limited company/invoicing etc. - do I have to do that myself in the local country or can I invoice under an umbrella company in Ireland as above ?
Ditto for tax affairs - do I end up paying tax in NL as well as Ireland ? (sounds like a double whammy if that's the case, and how do I get it back)
If I am commuting monday to friday, I presume the 183 days lark for non-residents doesn't apply....

Basically I'm looking for a way to get back to the family at weekends rather than stay over there, so if anybody has any advice on possible solutions I'd really appreciate hearing them...

Thanks folks