Working for a US-Based Company Remotely in the Netherlands

Question

My wife was recently accepted to a graduate degree program in the Netherlands and we are preparing to make the move later this year. I'm wondering what I need to know about continuing to work for my current US-based employer remotely while we're there for her school program.

In particular: do I need to worry about getting a work-permit and paying dutch income taxes in the Netherlands even though my work is really for a company based in the US and I will likely continue to be paid into my US-based bank via direct-deposit?

Answer 1

Work permit and autorization of stay are different things, at least in Luxembourg and i believe the same apply to Netherlands.

I'm from Brazil and recently moved to Luxembourg. I received a work permit and a residence permit (i really don't know how to call this one, it's in French, "autorisation de séjour"). My wife only received a residence permit that is valid as long as I stay here. She is not allowed to work here. To do this, it's another process. I think it would be the same to you.

Brazil also has tax agreement with Luxembourg. This means that my "pension" deductions in Luxembourg will be valid in Brazil. As a practical example, I can count my work years from here for the government retirement in Brazil, when I come back.

I don't know if your wife will work here or receive a grant from the university. If so, she will be deducted by local taxes, what will also give you (both) access to public health there. As you don't have a local salary there's no tax for you.

Last, if my wife worked remotely from Luxembourg and received a salary in Brazil, in a brazilian bank account, this would make no difference to taxes here, as far as I know. One thing to note, we have to declare in Brazil that we are living abroad. This changes the type of annual taxes declaration (in Brazil) that we are used to do. If she worked remote, i don't know how we should proceed on this. I will check more on this topic and come back.

Answer 2

In particular: do I need to worry about getting a work-permit and paying dutch income taxes in the Netherlands even though my work is really for a company based in the US

Of course. You'll be in Holland, and you'll be working - you have to have a proper legal status for that, including working permit. Why would you think Dutch laws would be different in this regard from your own home country?

You will most definitely have to pay taxes in Holland, and most likely it will be considered self-employment. So you may check the required tax filings, and whether or not your immigration status allows that. There's a tax treaty between Holland an the US, which may affect your tax liabilities while there. Talk to a local tax adviser. The tax treaty won't help you in the US though, so you may end up paying taxes in two places on the same income.

and I will likely continue to be paid into my US-based bank via direct-deposit?

That's between you and your employer. If they're OK using direct deposit to deposit your pay instead of giving you cash as they used to when you're working locally (I guess that's why you're asking).

Answer 3

https://www.orangetax.com/2015/09/employee-in-the-netherlands-without-an-employer-in-the-nl/ => "What is the solution? Non resident employment ship ... The employer costs for the employee are part of the foreign entity result, the employee receives a Dutch taxed salary over which have been due Dutch social premiums. The employee has access to all Dutch facilities. Should the employee have a 30% ruling, or can have a 30% ruling, this can be applied for. The employer needs to set up a Dutch employment contract."

Note that it will require an application from your employer to the Dutch authorities.

Do not try going self-employed (as the current top answer suggests -- you must have at least 3 customers in Netherlands, that solution does not work here.