4 things to tackle when moving residency to the Netherlands

Are you thinking of immigrating to the Netherlands, but don’t know what steps to take before and during your move of residency? The experts at Dutch Employer of Record are here to give you all-necessary steps you need to follow, one-by-one.

EU, EEA and Switzerland nationality holders* don’t need a residency or work permit to immigrate to the Netherlands. All other nationality holders on the other hand do require a permit and / or a visa to legally work and reside in the Netherlands.

*Are you an EU, EEA or Switzerland national? Then please follow from step 2 onward.

1. Get a residency and work permit for the Netherlands

Only employers who are recognised as a sponsor with the IND (Immigration and Naturalisation Office) can apply for permits on behalf of their employees.

The most common permit in the Netherlands is the highly skilled migrant permit. This permit requires the employer to demonstrate that they are hiring an employee from abroad and that they are complying with the minimum wage for the specific HSM permit and all other regulations.

As of January 1, 2023, the regulations are:

European Blue Card

• €5.867 per month (excluding holiday allowance).
• Allowing easy travel in the EU, EEA and Switzerland.

Standard Highly Skilled Migrant

• €5.008 per month (excluding holiday allowance).
• In terms of eligibility, this permit has fewer additional requirements.

Under the age of 30

• €3.672 per month (excluding holiday allowance).
• This reduced threshold is applicable to employees under the age of 30.

Orientation year

• This reduced threshold is applicable for an orientation year.
• €2.631 per month (excluding holiday allowance).

2. Find housing in the Netherlands

In the Netherlands, the housing market is currently not the easiest for everyone, especially if you are unfamiliar with the many, different housing providers.

Rentals in the Netherlands are differentiated into three sectors. Each has its own regulations and requirements:

Social housing (sociale huur)

• Annual earning maximum: € 44.035 (2023)
• Rent price maximum: € 808,06 (2023)

Mid-market housing (middenhuur)

• Annual earning: € 44.035 - € 67.752 (2023)
• Rent price: € 808,06 - € 1.131,06 (2023)

Private housing (vrije sector)

• Annual earning +/- minimum: € 54.000 (2023)
• Rent price minimum: € 1.131,06 (2023)

3. Arrange registration, social security, and healthcare insurance

By registering your residency with the municipality in the Netherlands, you will automatically receive your BSN (social security number).

The BSN number is mandatory for the following:

• Tax credits (Loonheffingskorting) are applied to the taxable wages when employed. Not having a BSN number, the Dutch employer would need to withhold 52% tax from the gross wages.
• Healthcare insurance can only be taken out when the national provides a BSN number.
• Annual income tax returns are possible only with a BSN number.
• DigiD registration requires a valid BSN number.

4. Make sure you receive all tax benefits

The benefits in the Netherlands are mostly focused on income ranges and / or household situations. Low-income households could be eligible for rent benefits and healthcare allowances. On the other hand, expats with a median income and higher would be eligible for the 30% tax ruling.

Here a few common benefits and allowances:

Low-income household benefits

• Healthcare allowance (zorgtoeslag)
• Rent benefit (huurtoeslag)

Tax benefits

• General tax credit (algemene heffingskorting)
• Labour tax credit (arbeidskorting) 

Child benefits

• Childcare benefit (kinderopvangtoeslag)
• Child benefit (kindgebonden budget)
• Children’s allowance (kinderbijslag)

Expat benefits

• 30% tax ruling

Make sure you do your research

Relocating to the Netherlands comes with a lot of considerations that should be taken into account. From permits and employment regulations to social security and tax benefits. Each will have its own set of rules to follow.

Dutch Employer of Record can assist you in navigating these complexities and help you with the 30% ruling and finding the right housing, insurance and permits for a successful relocation. With their knowledge and expertise, relocating to the Netherlands can be made much easier.