In a relatively small country such as the Netherlands it is quite common for people to work outside the Netherlands for a while. And vice versa many people from other countries work in the Netherlands; more and more people work in two or more countries at the same time. Cross-border employment may have substantial consequences for the tax and social security position, not only for the relevant employee, but also for you as the employer or client. Employment law is also important. What should you be aware of when your business is expanding outside the Netherlands?

Cross-border employment almost always produces complex issues because in each country laws and regulations are different. The challenge is finding the right balance between cost savings, protection, motivation and remuneration of employees and observing obligations. Then there are different rules for the European Union compared to third countries.

Our approach

At BDO we understand that each situation is different and needs to be assessed critically in advance. For example, our specialists can help you, as an employer, with the following questions:

Where do I pay tax and social security contributions?
Does the 30%-scheme apply?
Could a salary split apply? Is this favourable?
What are the consequences of a nett agreement?
Is there a duty to withhold taxes in the country where the work is carried out?
Should there be a (shadow)-payroll?
Does anything change when we charge costs to our branch outside the Netherlands, or to our branch in the Netherlands, as desired by our Finance department?
Can the pension accrual for my employees continue outside the Netherlands?
Are there any consequences for their mortgage interest relief?

We also have a close cooperation with other BDO-disciplines like Advisory. For example, we can rely on their knowledge regarding legal issues.

Contact

If you would like to know how BDO can help you with your expat policy? Please contact one of our specialists to arrange an introductory meeting without any obligation.