Gefeliciteerd, you’ve landed a job in the Netherlands! But before you celebrate that coming paycheck, there’s one important question: can your employer actually pay you without a Dutch bank account?
Let’s break down what an IBAN is, what it does, and whether you really need one if you’re working in the Netherlands. 👇
What is an IBAN, and why do you need one in the Netherlands?
An IBAN (or International Bank Account Number) is a standardised code that identifies your bank account.
You can think of it as your bank account’s passport: an essential part of sending and receiving money in the Netherlands. It’s necessary for transactions like direct debit, international money transfers, and even some domestic transfers.
If you use a banking app, your IBAN will be a string of alphanumeric code linked to your account. Typically, your IBAN will have 18 characters, which include:
- your country code (such as NL for the Netherlands),
- two check digits (which help validate your IBAN),
- your four-letter bank code (such as INGB for ING, RABO for Rabobank, and ABNA for ABN AMRO), and
- your ten-digit account number.
Here’s what a typical Dutch IBAN might look like: NL42 ABCD 2468 1236 94. While these are generally written in blocks of text for ease of reading, you’ll need to input your IBAN as a continuous string of characters, with no spaces.
Just signed your Dutch employment contract? Hoera! Now it’s time to focus on practical matters, such as arranging a local bank account to ensure you can get paid on time.
Thanks to their quick, easy sign-up process and powerful money-management features, ING makes the process of getting a Dutch business bank account simple and stress-free.
Can you get paid with a foreign IBAN?
According to European regulations, companies shouldn’t discriminate against EU IBANs. However, in practice, many employers in the Netherlands will strongly prefer (or outright require) a Dutch bank account.
But why exactly are employers in the Netherlands hesitant about dealing with non-Dutch IBANs? A multitude of factors affect the ease of dealing with foreign bank accounts.
The most common complaints include:
- Extra costs, as international transactions often come with transfer fees and (often) a currency exchange markup.
- Processing delays may result in your salary taking much longer to arrive. Needless to say, this isn’t ideal when you’ve got rent to pay and groceries to buy.
- Administrative headaches, because certain payroll systems are set up to work with Dutch IBANs only.
Here’s why a Dutch IBAN is much easier
Some Dutch companies have strict policies requiring employees to have Dutch bank accounts. This is largely for their own security, as they want to ensure that payments go through verified, local accounts.
To ensure that you’re paid promptly (and don’t incur any processing fees or transfer costs), having a Dutch IBAN is essential.
Meanwhile, if you’re expecting a tax refund from the Belastingdienst (Dutch Tax Authority) or applying for benefits like zorgtoeslag (healthcare allowance), the process is far less of a headache with a local IBAN.
Beyond collecting your paycheck and paying your taxes, you’ll likely need a Dutch IBAN for everyday expenses and utilities.
This is because certain public transport services may not accept foreign bank cards, rental agreements may require a local bank account, and some direct debit systems require a Dutch IBAN.
All in all, if you’ll be living and working in the Netherlands, a Dutch IBAN will probably make your life much easier.
Have you managed to survive in the Netherlands with a foreign IBAN? Share your experience in the comments below.
This article was sponsored by ING and written by DutchReview.