How to freelance in the Netherlands: taxes, compliance, and smarter alternatives

Author

Emma

Professional Development Specialist

The Netherlands is one of Europe’s most attractive destinations for high-skilled freelancers. With its strong economy, international business culture, English proficiency, and quality of life, it’s easy to see why so many digital professionals relocate here. Whether you work in tech, design, marketing, or consulting, the Netherlands offers a dynamic, well-connected base for remote and contract work.

However, behind the appeal lies a complex tax and legal system. If you’re freelancing in the Netherlands, it’s essential to understand how the self-employment structure (ZZP), tax obligations, invoicing rules, and compliance risks work. In this guide, we’ll explain the essentials and introduce a simpler alternative for those who want the benefits of freelancing without the admin burden.

What does it mean to be a freelancer (ZZP’er) in the Netherlands?

In the Netherlands, freelancers are commonly referred to as ZZP’ers, short for zelfstandige zonder personeel, which literally means “self-employed without employees.” This term applies to anyone who works independently, does not employ staff, and provides services directly to clients or businesses.

You’re considered a ZZP’er if you operate under your own name or trade name, work with multiple clients, take on projects at your own risk, and aim to make a profit. Freelancers must register with the Dutch Chamber of Commerce (KvK) if they meet these criteria. Once registered, they are also issued a VAT (BTW) number and become responsible for managing all aspects of their business, including taxes, invoicing, insurance, and accounting.

This setup offers a high level of flexibility and is popular among consultants, creatives, IT specialists, and other high-skilled professionals. However, it comes with its share of responsibilities. 

As a ZZP’er, you must keep detailed financial records, submit quarterly VAT returns, and file annual income tax declarations. You’re also expected to arrange your own health insurance and contribute to Social Security where applicable.

While freelancing in the Netherlands is a respected and accessible career path, it also exposes professionals to legal and tax complexity, especially when working with international clients. For those new to Dutch regulations or juggling multiple contracts, the administrative burden of ZZP life can quickly become overwhelming. To learn more about trends shaping independent work in Europe, see our article on the future of freelancing.

Tax obligations for self-employed professionals

Freelancers in the Netherlands, or ZZP’ers, are taxed as individuals. Income is subject to progressive tax rates, which include national income tax and social security contributions. As of 2025, the tax rates are:

• Up to €37,000: 36.93%
• Above €37,000: 49.5%

These rates apply to your net annual profit after deducting eligible business expenses. In addition to national taxes, some municipalities impose local taxes, depending on where you live or operate your business.

If your annual turnover exceeds €20,000, you must register for VAT (known as BTW in Dutch). Once registered, you’re required to:

• Charge VAT (typically 21%) on your invoices
• Submit quarterly VAT returns to the Dutch tax authority
• Keep accurate financial records and receipts

Even if you earn below the threshold, some freelancers voluntarily register for VAT to be taken more seriously by clients or benefit from input tax deductions.

Health insurance is mandatory and must be arranged privately through a Dutch provider. You’ll also need to consider private pension contributions, as there’s no automatic retirement system for freelancers. Other protections like sick pay or disability cover must also be arranged independently.

Altogether, the quarterly admin cycle, including VAT filings, bookkeeping, and tax prep, can feel burdensome, especially for non-Dutch speakers or those managing multiple clients. Seeking help from a local bookkeeper or using a smart alternative like Hightekers can make compliance much easier.

How to invoice clients correctly in the Netherlands

When freelancing in the Netherlands, invoicing isn’t just about getting paid — it’s also about meeting legal obligations. The Dutch tax authority (Belastingdienst) has strict requirements for how invoices must be formatted, and failing to follow them can result in fines or delays in tax processing.

To ensure compliance, every invoice must include the following:

1. Your KvK registration number (from the Dutch Chamber of Commerce)

2. Your VAT (BTW) number

3. Your client’s full name and address

4. A unique invoice number and the date of issue

5. A clear description of the service or project

6. The amount excluding VAT, the VAT percentage, and the total amount including VAT

If you are invoicing clients within the Netherlands, VAT is generally charged at 21%. For some services or sectors, a reduced rate or exemption may apply.

When invoicing international clients, such as a UK agency or EU-based company, VAT treatment depends on the type of service and the client’s VAT registration. In many cases, if the client has a valid VAT number and is located in another EU country, the reverse charge mechanism applies, which means you don’t charge Dutch VAT, but the client accounts for it on their end. You must still include the correct disclaimer and their VAT number on the invoice.

Currency conversions can further complicate matters. While invoices can be issued in foreign currencies, they must be converted to euros for tax filings. Differing expectations between Dutch and international clients may also affect formatting, so it’s best to use invoicing software aligned with Dutch standards or seek professional support to avoid costly mistakes.

The legal pitfalls freelancers need to avoid

Freelancing in the Netherlands offers flexibility, but it also comes with legal responsibilities — and growing scrutiny from Dutch authorities. One of the biggest concerns is misclassification: the risk that someone registered as self-employed (ZZP’er) is, in practice, working more like a traditional employee.

Misclassification often happens when a freelancer depends heavily on a single client, follows that client’s internal schedules or tools, or has limited autonomy over how the work is carried out. Even if you technically work with several clients, if one contributes the majority of your income, you may still be seen as economically dependent — triggering closer inspection.

Dutch tax authorities and labour inspectors are increasingly focused on identifying these cases, especially in sectors like tech, marketing, consulting, and creative services. If you’re reclassified as an employee rather than a contractor, the consequences can be serious:

• Fines and penalties for both you and your client
• Backdated tax and social security payments, potentially covering months or years
• Legal or residency complications, especially for non-EU nationals working on specific permits
• Disruption to your business model if your contracts are cancelled or renegotiated
  

Moreover, as a ZZP’er, you’re not entitled to standard protections such as sick pay, maternity or paternity leave, unemployment benefits, or paid holidays. For some, this independence is worth it. But for others, especially those with families, health considerations, or long-term relocation plans, the lack of a safety net adds significant stress.

Understanding the line between freelance and employment isn’t always easy, but getting it wrong can cost more than just taxes. This is why many freelancers seek support or look for compliant alternatives like Hightekers, which offers a fully legal structure that eliminates these grey areas entirely.

Hightekers: a smarter and fully compliant alternative to the ZZP model

For high-skilled freelancers looking for simplicity, security, and compliance, Hightekers offers a reliable alternative.

We act as your legal employer while preserving your freedom to work with clients of your choice. Here’s how it works:

• We sign a service agreement with your client
• You receive an employment contract with Hightekers
• We manage your invoicing, payroll, taxes, and social contributions
• You get paid monthly with full transparency and benefits

For example, Sam, a British UX designer in Amsterdam, struggled with the ZZP system and constant admin. Most of his income came from one client, putting him at risk of misclassification. Through Hightekers, he kept his freelance setup while becoming a legal employee with full benefits. Now, Hightekers handles his taxes and contracts, and Sam focuses on his work, stress-free.

This model is ideal for:

• Freelancers who want to live and work in the Netherlands without setting up a business
• Contractors with multiple clients and cross-border projects
• Professionals concerned about classification risks or admin complexity

With Hightekers, you can focus on your work, but not tax deadlines, VAT returns, or compliance risks.

Freelance on your terms, with fewer risks

The Netherlands remains a top destination for freelancers, but the ZZP system isn’t always the best fit. If you find the tax filings, invoicing rules, or misclassification risks overwhelming, you’re not alone.

Hightekers provides a more innovative, more straightforward way to freelance legally and confidently. You keep your independence while we take care of the compliance.

Simplify your freelance work in the Netherlands with Hightekers.

Author

Emma

Professional Development Specialist

A seasoned career development specialist based in Bristol, where she helps international professionals manage the complexities of establishing their independent careers in the UK. With over a decade of experience in talent management and professional mobility, she leads initiatives to support freelancers and independent consultants across various high-skilled sectors. When she's not advising professionals on their career journeys, you might find Emma exploring Bristol's street art scene or cheering on her beloved Bristol City FC!