7 important things you should know before becoming a freelancer in the Netherlands

There are many benefits to becoming a freelancer in the Netherlands: you determine your own hours, decide how you want your business to be run, and maybe you’re a #girlboss — but with this title comes a number of important points to consider. 

For example, what will you do if you get sick? Do you know how to submit your BTW (VAT)? How much should you charge? 

From one freelancer to another, here are seven very important things you should know before becoming a freelancer in the Netherlands.

1. It’s up to you to set up (and pay into) a pension plan

One thing about being your own boss is that there’s no employer to take care of the bureaucracy — so it’s up to you to set up your own pension.

The AOW or Algemene Ouderdomswet (National Old Age Pension Act) is a basic pension provided by the Dutch government to anyone who lives and works in the Netherlands.

This means that, even if you’re an international, you will receive an AOW pension for the years you worked in the Netherlands. 

However, the AOW will only provide you with a very meagre allowance, which will likely not be enough to support you through retirement. 

Instead, in the Netherlands, it’s very common for people to supplement their state pension throughout their working lives. This is often done in two ways:

By personally contributing to a private pension account
By having an employer who pays into an employee pension fund

As a self-employed person in the Netherlands, you will not be able to rely on an employee pension, which means it’s up to you to contribute to your own private pension fund in order to supplement your government pension.  

2. You need to take out insurance in case you fall ill

Life happens, which means that sometimes, you find yourself unable to work due to illness or disability.  

Unlike when you are employed, as a freelancer in the Netherlands, it’s up to you to set up an insurance package that will help supplement your income should you ever find yourself unable to work. 

There are a number of ways you can protect yourself: 

You can take out private illness or occupational disability insurance
You can take out something called ‘individual occupational disability insurance with collective conditions’ 
You can participate in a ‘schenkkring’, a donation fund set up by a group of entrepreneurs. Each month, you donate to the fund, and should you ever become unable to work, you will receive some money from the fund for the first two years. The amount of people in the group is usually limited.  
You can take part in ‘crowdsurance.’ Similar to a ‘schenkkring’, a group of entrepreneurs will contribute to a fund for participants. 

3. Your minimum wage is different to the normal minimum wage

As a freelancer, you’re also responsible for determining what you need to charge in order to cover your costs and pay yourself a livable wage. 

This means you must charge more than the national minimum wage per hour. Why? Because you will also need to cover the cost of your insurance, sick leave, and pension.  

As a result, it is suggested that the minimum hourly rate you should ask for as a freelancer in the Netherlands is €33, with the average hourly rate sitting between €40 and €50. 

4. You need to become an admin wiz

It’s also up to you to keep on top of your administration. This means creating spreadsheets of your hours worked, tracking your stock, your expenses, and the tax you owe — and yes, it can be overwhelming. 

Thankfully, there are many online tools that can help freelancers with this.

5. You may need to hire an accountant 

Sometimes, all you need is a professional to sit you down and tell you what to do. This is why many freelancers hire accountants to help them with their taxes.

As a ZZP’er (freelancer) in the Netherlands, you’re expected to pay your BTW (VAT) every fiscal quarter. On top of that, you’ll be filing your annual income tax. 

This is already tricky for someone who understands Dutch, let alone someone who doesn’t speak the language. 

READ MORE | The best business bank accounts for internationals in the Netherlands

I’d recommend hiring an accountant, at least for your first year as a ZZP’er. They’ll make sure you know how to do everything by the books. Once you feel confident enough to try it yourself, you can always spread your wings.   

6. You are financially liable for your own business

When you’re employed by someone, the worst thing that can happen if the business fails is that you will lose your job. While this is quite unpleasant, as a ZZP’er it could be much worse. 

READ MORE | 7 things you need as a freelancer in the Netherlands

If your business fails to turn a profit and falls into debt, then that means you’re falling into debt. Your business is tied to your personal finances, and if it suffers, so do you. 

7. You need to beware of false self-employment

Many businesses in the Netherlands will hire people as freelancers when, in reality, they should hire them as employees. This is known as false self-employment. 

You are likely under false self-employment if: 

You cannot determine your own hours 
You cannot decide how you will carry out the work
You cannot subcontract your work to someone else 

People often find themselves working as a false freelancer when they are offered a job with the condition that they register themselves as a ZZP’er with the KvK. 

READ MORE | Becoming a freelancer in the Netherlands: The 2024 ZZPer guide

However, by becoming a ZZP’er under these conditions, you essentially become an employee without employee benefits. Your employer doesn’t have to pay into a pension fund for you, they don’t need to insure you, and it’s up to you to sort your taxes. 

Becoming a ZZP’er can be a very exciting step in your life in the Netherlands — just make sure you’re informed before you enter the ring. 💪

Are you working as a freelancer in the Netherlands? Tell us about your experience in the comments below!