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Employer of Record Guide · Netherlands

🇳🇱 EOR Guide —
Netherlands

Everything you need to know about using an Employer of Record in Netherlands — provider fees, compliance risks, hire speed, and EOR vs direct employment.

Low compliance riskMature EOR marketHire speed: Fast
← Netherlands Overview

Employer SS (approx)

~19% of gross salary

Holiday allowance

8% of annual gross (vakantiegeld)

Minimum wage (2025)

€13.27/hr

Minimum annual leave

20 days (4 × weekly hours)

Corporate tax rate

19% (up to €200k), 25.8% above

EOR providers active

Deel, Remote, Oyster, Boundless

Our Recommendation

EOR ideal for first Dutch hires

The Netherlands has a business-friendly environment with predictable EOR costs. The main complexity is the mandatory 8% holiday allowance (vakantiegeld) and sector-specific collective agreements (CAOs). EOR providers handle both well. Consider a BV once you exceed 10–15 permanent employees.

EOR provider fee range for Netherlands

10–17%on top of total employer cost

Rates vary by provider, headcount, and benefits scope. Always request itemised quotes from at least three providers.

EOR vs Direct Employment

EOR advantages in Netherlands

  • Hire in days
  • Provider handles vakantiegeld (8% holiday pay)
  • No BV required
  • Clear contractor classification framework

EOR limitations in Netherlands

  • 10–17% markup
  • Provider controls employment contract template
  • Less flexibility on benefits design

Direct employment advantages

  • Full operational control
  • No markup at scale
  • Access to collective labour agreements (CAOs)

Direct employment limitations

  • BV setup required
  • Complex payroll with holiday allowance (vakantiegeld)
  • Works council rights at 50+ employees

Local Entity Options

Setting up a legal entity in Netherlands.

If you outgrow EOR or prefer direct employment, these are the main legal structures available in Netherlands for foreign companies.

Besloten Vennootschap (BV)

Setup time

3–10d

Est. cost

$2,500

Min. capital

None

Corp. tax

25.8%

Div. WHT

15%

VAT rate

21%

Registered address required100% foreign ownership permitted

Annual obligations

  • Annual accounts (KvK / Kamer van Koophandel)
  • Corporate tax return (Belastingdienst)
  • VAT returns (monthly/quarterly)
  • Payroll tax returns (monthly)
  • UBO register

Overview

Main corporate structure in Netherlands. No minimum capital (was EUR 18,000 until 2012 reform). At least 1 director (no residency requirement). Registered office in Netherlands required. KvK online registration — can be done in 1 day. Corporate tax: 19% on first EUR 200,000, 25.8% above. Holding BV structures common for IP and international HQ. Participation exemption (deelnemingsvrijstelling) exempts qualifying dividends and capital gains from corporate tax. Dividend withholding 15% (reducible under treaties).

Official company registry

Branch (Vaste Inrichting / Nevenvestiging)

Setup time

2000d+

Est. cost

—

Min. capital

$21

Corp. tax

25.8%

Div. WHT

15%

VAT rate

21%

Registered address required100% foreign ownership permitted

Annual obligations

  • Annual accounts of parent (KvK)
  • Dutch corporate tax return
  • VAT registration

Overview

Foreign companies can register a branch in Netherlands. KvK registration required. No separate legal entity. Parent fully liable. Branch profits subject to Dutch corporate tax. Must have a Dutch registered address. Simpler initial setup but less flexible for profit repatriation and equity structures.

Official company registry

Compliance Risks

Key EOR compliance risks in Netherlands.

Discuss each of these with your chosen provider before signing.

Vakantiegeld (holiday pay)

Medium

Employers must accrue and pay an 8% holiday allowance on top of gross salary, typically paid in May. Your EOR must handle this correctly in payroll calculations.

Wet DBA contractor classification

High

The Netherlands has strict rules distinguishing employees from contractors. The Wet DBA framework means misclassification carries significant risk. EOR removes this risk entirely.

Collective agreements (CAOs)

Medium

Many sectors have mandatory CAOs that set minimum pay above statutory minimums. Your EOR must identify and apply the correct CAO for your industry.

Transition payment on dismissal

Medium

Employees are entitled to a transition payment (transitievergoeding) when dismissed, calculated at 1/3 month salary per year of service.

Cost Estimator

Estimate your Netherlands EOR cost.

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