My company is moving to the Netherlands after Brexit, should I come along?

So, Brexit happened. How about that, right? Since the March 2019, we see companies planning their move out of the United Kingdom to the European Union. Different companies have different reasons to move. A few of those reasons are:

1. Gaming companies (and tech companies in general) need a big talent pool to find programmers to develop their games. Before Brexit, people could freely  move from all over the EU to work in the UK. That might become harder after Brexit.

2. Banks are anticipating a move because they need the regulatory framework  the European Union provides.

3. Companies that have manufacturing factories prefer to be in the EU where  the borders are open and they can freely ship their products.

4. It’s important for companies to have a European presence since the European market is much bigger than the UK market.

You might be thinking: how bad is it really with all of those companies that are supposedly moving to Europe? Well, we’re not sure. But it might be bad.

This article claims that 100.000 jobs might leave the UK:

“It’s very hard to tell how many people will actually move. However, it’s clear that EU operations will need to be proper functioning entities and not just letterboxes.”

If your company is one of those companies moving, you might have a hard time competing with the other 99.999 people that will be looking for a new job in Britain soon.

Luckily, you still have a choice. It makes sense for companies to take their employees with them when they move since it takes a lot of effort to train new people for the jobs that are moving. If your company is moving, they might ask you to come along. So, what is your answer? Will you move across the pond?

Benefits of moving to Europe after Brexit

We can imagine that you wouldn’t want to make such a life-altering decision without thinking it through. And, we can also imagine that you feel a bit taken back by the entire situation. After all, you’ve worked so hard to get to where you are right now career-wise. Still, it’s not easy to choose between your career and your home.

Or, are you excited about this opportunity for adventure? Maybe, you think that moving to Europe with your company will even further advance your career. It will definitely show your employer how much you’re invested in the company. It might even create a situation where your company owes you one. Isn’t that a great position to be in?

Actually, there are plenty of good reasons to move with your company. Granted, you won’t be able to see your family as much. That’s a bummer. Also, there will possibly be some language barriers to overcome. Even worse… you’d have to learn to drive on the other side of the road. But think about how much richer it will make you in life experience. Meeting new people. Getting to explore a new cuisine. Learning about a different country and culture. Getting to know yourself really well. Who wouldn’t want that?

Don’t care about getting richer in life experience? Moving to Europe might also bring you financial benefits. Since we can only speak for moving to the Netherlands after Brexit, that’s what we’ll do.

In the Netherlands, expats are eligible for the 30% tax ruling. That means that you’re not paying any taxes on the first 30% of your annual salary. If you buy a house in the Netherlands, you get even more tax benefits. The interest you pay on your mortgage is deducted from your taxes. Even when you rent a house, you still save money since the cost of living in Amsterdam is 18% cheaper than in London.

Think about what you could do with all that extra money you’re saving because of the 30% ruling and the cheaper living costs in the Netherlands… Do you buy that Tesla model S you’ve been dreaming about? Or, do you go on that once in a lifetime luxurious holiday to the Maldives – every year?

What will you need to do to move to Europe after Brexit?

Under the European Union’s right of free movement, it was very easy for Brits to work anywhere in the European Union. EU citizens don’t need a work permit or a residence permit to be able to work and live anywhere in the EU. After Brexit, these rules will most probably change.

Now, there are also 3 million EU nationals living in the UK. If you’re one of them, you’ll still fall under the same EU rule of free movement. You can move back to Europe with your company without needing a permit.

We can’t say anything for sure at this point about what the requirements will be to move to Europe after Brexit. That will depend on the negotiations between the European Union and the United Kingdom. What we can say is that, if you move to Europe before the 2019 Brexit deadline, you’ll probably be allowed to stay after. That’s because there are agreements within the European Union that dictate that withdrawal of a treaty affects the future only.

Don’t let it bring you down

As if kind of being forced to move to another country by forces that are greater than you isn’t enough, you also have to take care of so many things for your move to go well. Most companies that hire expats, help with their relocation. Hopefully, your company will too so that you’ll have one thing less to stress about. There are so many other things however that you need to take care of when you move to another country. You need a bank account, you need housing, you need health insurance and other insurances. And while we can’t help you find a school for your kids or help you adjust to driving on the wrong – kidding, the right – side of the road. We can help you by relieving you from taking care of your personal finances. We’re just saying, don’t write off moving with your company because the thought of everything you need to arrange makes you anxious. We’ve got your back. Because, unlike with ex-spouses of many failed marriages, we still love you…

Is your company moving to the Netherlands after Brexit and you already know you’re going with them? Check out our blog posts on What to expect when you’re moving to the Netherlands and What expats need to know about personal finances in the Netherlands.

Need us to help you moving to the Netherlands after Brexit? Check out all information about expat mortgages and expat insurances.

What insurances do expats in the Netherlands need?

The point of covering risks with insurance is to not fall into a situation where you need to pay extensive bills if something unexpected happens. Most people don’t have a gigantic savings account which they can use when – God forbid – they had a fire in their house or to pay for the funeral of a loved one.

The hardest thing about getting insured in the Netherlands is to find out which insurance you need. To actually get insured is easy, it’s all done online and there are a gazillion insurers that can help you. A quick Google search can get you a long way but we can imagine that choosing the insurer that’s right for you can seem like a daunting task. How do you find out which insurer is reliable and which exact insurances you need?

There are plenty of intermediary websites where you can fill in your details and get a list of insurances that are best suited for you. These websites only tell you about the particular insurance you specified but don’t help you find out which insurances you need for your particular situation.

Popular Insurances

If you accidentally bump into a parked car while riding your bike, the damage to that car can be covered by a liability insurance. This insurance is the reason that a falling out over damaged things won’t happen often between the Dutch.

Legal insurance

Suing in the Netherlands isn’t a common thing at all so you don’t have to get legal insurance for that reason – We see you, American readers, sighing in relief… – Don’t forgo on the legal insurance however as there are other cases in which you could need legal insurance. One of our clients bought a house which he could move into two months after the deed on his rental house expired. He asked his landlord if he could stay two more months in his rental place. The landlord refused because he couldn’t wait for our client to move out. In the current housing market, the landlord can easily ask for a much higher rent than our client was paying. In such cases, it’s nice to have legal insurance to help you.

Travel insurance

Travel insurance can help you when your luggage gets stolen while traveling abroad. It can also help you in case you have an accident or are sick to get you back to the Netherlands. You can choose to include cancellation insurance in your travel insurance. This ensures you that you can cancel or reschedule your trip when something unexpected happens. Without losing your money.

Repatriation insurance

Nobody wants to think about it but if you were to die while living in the Netherlands, where would you want to have your memorial service? With this insurance, your body is repatriated to your home country.

Need help to decide which insurance you need?

The Dutch sure love their insurances. A problem Dutch people have is that they are over-insured as opposed to under-insured. In reality, these are two similar problems with very real consequences. Either way, you’re losing money. Your goal should be to have just the right amount of insurances. Learn everything about expat insurances in the Netherlands.

We know that you most likely don’t want to think about all the horrible stuff that can happen in life. So depressing, right? But sometimes, you need to take charge now to be safe in the future. We can help you get the right insurances in one appointment of an hour. That beats surfing the internet for days, trying to find out what you need and how to get it, right?

Contact us at +31 (0)23-3030110 or send us an email at info@inexpatfin.nl and we’ll set up a free, non-binding appointment. We can also help you switch to another health insurer.

What you need to know about moving to the Netherlands as an expat (even if you already have a relocator)

Getting settled into a new country can be a stressful experience. Luckily there are relocators who can help you make the experience less of a confusing process. Most expats who are moving to the Netherlands will work for a large company. Those companies usually set you up with a relocator who helps all expats of that company with moving to the Netherlands.

Some expats, however, will work for a smaller company and will have to find a relocator on their own. The same goes for all the expat entrepreneurs out there.

Whatever your situation, it’s good to know what to expect of your move to the Netherlands. That way you’ll feel more in control. Which can help you reduce your stress even more.

So, without further ado, these are the steps you need to take to become an expat in the Netherlands:

VISA and Residence Permit

If you’re not a citizen of the European Union, your very first step to moving to the Netherlands is to apply for a VISA. When your VISA request is accepted, you can apply for a residence permit. To apply for a residence permit, the company you’re going to work for needs to be registered as a recognized sponsor at the IND. For your application to be accepted, your salary needs to be sufficient, independent and long-term. The cost to apply for a residence permit is currently €938 and is usually paid for by your employer. To find more information and to apply for the permit, visit the website of the IND.

Get Registered

After getting your residence permit, you’re good to go! As soon as you arrive in the Netherlands, you’ll need to register yourself as a resident. Every city has a different process so you should find out how to register in the city where you’re going to live. Some cities require you to register at city hall, others require you to register at a special expat center. You do need a Dutch address to be able to register in the Netherlands. If you don’t have an address yet, you need to register as soon as you sign a rental lease. Or, if the city where you’re going to live allows it, you can register at the business address of your employer.

The Social Security Number (BSN)

Once you’re registered as a resident, a social security number (BSN) will automatically be assigned to you. Without your BSN, you won’t be able to work in the Netherlands.  Plus you need your BSN to do a number of other things such as to open a Dutch bank account, to apply for health insurance and to apply for the 30% ruling.

Without registering in the Netherlands and without your BSN, you won’t be able to start your life as an expat in the Netherlands. You’ll kind of remain a tourist. If you’re still not registered after 4 months, you become an illegal alien in the Netherlands. If you’ve been working all this time, your employer is in violation of the law and will have to pay a large fine to the Dutch government.

Keep in mind that, if your family is coming to the Netherlands with you, they each need their own BSN. Even the littlest one. Kids, for example, need a BSN to be able to go to school.

Health Insurance

You’re required to take out health insurance within 4 months after your arrival in the Netherlands. There are plenty of health insurance providers in the Netherlands. To find out more about health insurance, read our blogs https://www.inexpatfin.nl/news/31/what-expats-need-to-know-about-personal-finances-when-moving-to-the-netherlands”>here and here.

Driver’s License

Upon arriving in the Netherlands, find out how long you’re allowed to drive with the driver’s license from your country of origin. Driver’s licenses issued in some countries are only valid for 6 months after your arrival in the Netherlands. It’s probably a good idea to find out if and when you need to convert your foreign driver’s license to a Dutch driver’s license. You can find more information here.

The role of your relocator

Now that the most important things you need to do once you arrive in the Netherlands are clear, you might wonder what role your relocator has in all of this.

Well, the relocator guides you through every step of the way. He’s also there to translate anything for you. Your relocator can help you to apply for your residence permit. He can help with shipping your stuff from your current country of residence to the Netherlands. He can find houses for you and make appointments so you can go see those houses as soon as you arrive in the Netherlands. Once you arrive to the Netherlands, your relocator can pick you up from the airport and go to the previously arranged house viewings with you. After you’ve signed your rental lease, your relocator will go with you to city hall to register you. He will help you open a bank account, apply for the 30% ruling, and direct you in how to convert your driver’s license. The relocator can also help you find a general practitioner and a dentist. Furthermore, he can help you find a good school for your kids and just, in general, provide you with all the information that you need about the Netherlands.

Some relocators have preferred companies they work with to take care of certain things for you. However, you’re still the boss of your own relocation. So should you want to use another vendor, perhaps a certain financial intermediary to help you open your bank account or to take out your health insurance with, you’re free to do so! You just have to tell your relocator to contact us at +31 (0)23-3030110 or info@inexpatfin.nl, or you can contact us yourself. Good luck with moving and see you soon in the land of the tulips!

How do taxes for expatriate homeowners work in the Netherlands?

When you buy a home in the Netherlands, you’ll soon be confronted with taxes concerning that new house. Aside from the taxes involved with buying a house, which are usually one-off taxes, there are also a bunch of recurring taxes. Most of the taxes that concern your home are collected by the municipality you live in. A few other taxes are collected by the tax authorities, and a government body called the Waterschap collects one particular kind of tax.

Almost all of the taxes you have to pay for your home are calculated based on the WOZ-Waarde of your house. The WOZ value is calculated every year by your municipality and doesn’t necessarily have to be the same value an appraiser would give your home.

You might have already heard about the possibility to deduct your mortgage interest with the hypotheekrenteaftrek. But unfortunately, when it comes to owning a home, you don’t just get money back from the tax authorities. There are also some taxes that you need to pay. These are the overdrachtsbelasting and the eigenwoningforfait.

Overdrachtsbelasting

When you buy an existing house as opposed to a newly build house, you need to pay overdrachtsbelasting. This is a one-off fee and is 2% of the price of your house. When you buy your home, the notary that also passes the contract handles the declaration of the overdrachtsbelasting. The notary will also pay for the overdrachtsbelasting in your name.

The eigenwoningforfait is a recurring tax collected by the tax authorities from homeowners. Your house is seen as income in kind by the tax authorities. Instead of paying a certain amount of tax for your home, the eigenwoningforfait is added up to your income and you pay for it through your regular income tax filing. It’s calculated based on a percentage of the WOZ-Waarde of your house, and the higher the value of your home, the higher the rate you have to pay.

The eigenwoningforfait is paid through your income taxes every year. Say your house’s WOZ value is €500.000 that means that the eigenwoningforfait is 0,75% of €500.000 is €3750. That amount is added up to the rest of your income. On the other side, however, your hypotheekrenteaftrek is deducted from your income. So, the amount of income tax you’re paying is calculated like this:

yearly salary – hypotheekrenteaftrek + eigenwoningforfait = taxable income

Municipality

Besides the taxes you’re paying to the tax authorities, there are also other taxes that are paid directly to your district. There are the onroerendezaakbelasting, rioolheffing, reinigings- and afvalstoffenheffing.

Onroerendezaakbelasting (OZB)

Your municipality uses this tax for miscellaneous things. The person that owns a house on the 1st of January is paying for the OZB. Even if you’re moving on the 2nd of January, you’re paying the tax for the entire year. The amount of tax you need to pay is a percentage of the WOZ-Waarde. Every municipality, however, decides what the percentage is that you’re paying. To give you an idea of the percentages of the OZB, the lowest rate in 2018 is 0,04139% of the WOZ-Waarde. Surprisingly, it’s the city of Amsterdam that has the lowest OZB percentage in the Netherlands. The highest rate is collected in Nijmegen, and that rate is 0,2612%.

Rioolheffing

You pay this tax for the right to use the sewer. With the charge, your municipality makes sure that the water you use in your home is drained. The city also uses the charge to drain and save rainwater, to keep groundwater in check, and to maintain the sewer system. Again, every municipality decides on the tax amount, but they aren’t allowed to tax their citizens more than what they need to finance the tasks as mentioned earlier.

Reinigings- en afvalstoffenheffing

By paying this tax, your municipality can collect and clean up your garbage disposal. Again, the city decides on the amount you’re paying for this tax, but they’re not allowed to ask for more than they need to perform their task.

Waterschap

The Dutch are known to be masters of water. That’s why they are asked to give their expertise on water all over the world. Historically, the Dutch had to learn to manage the water surrounding the Netherlands. To handle that water an individual government body called the Waterschap was created.

The Waterschap is responsible for managing the water in a designated area. It’s their duty to make sure you receive clean water in your home and to protect you from the water surrounding the Netherlands. To fund the responsibilities of the Waterschap, everyone has to pay waterschapsbelasting.

Taxes for the waterschap responsible for your municipality are paid directly to them. They send you an invoice for the charge once a year, or you can agree with them to pay in installments. The amount of the tax depends on where you live and can be anywhere between €150 and €300 a year. The waterschap is a non-profit organization, so they too won’t ask for more tax than they need.

So, those are all the taxes involved in owning a house. Some of which by the way, are also imposed on renters.

If you’re thinking about buying a house in the Netherlands, why not find out how much you can take out in a mortgage? That way, you can start looking at homes that you know are a right fit for you financially speaking. Contact us at +31 (0)23-3030110 or info@inexpatfin.nl to set up a free and non-binding appointment where we can discuss your options.

Expats: Protect yourself from the costs of conflict and liability in the Netherlands

To live in a society means you have to coexist with different people who have their own opinions and perspectives on life. All those differing opinions and views can cause conflicts. Of course, you don’t mean to get into disagreements or to do anyone harm, but these things can happen to anyone. And when it does, you could be hit with huge legal bills or claims.

Luckily, legal conflicts and liability for damages or harm caused to others can be covered by legal insurance and liability insurance. In this blog, we explain the advantages of taking out those specific insurances

Legal Insurance

Hiring a lawyer can be very expensive. With legal insurance, you can make sure that you’re always represented when problems arise. The disputes that people most often get into are traffic related cases, consumer disputes, and conflicts with employers. But those aren’t the only cases covered by legal insurance. You can get legal assistance in many different situations such as:

• when you get into a conflict at work, for example, to dispute your dismissal
• when you buy a house, and it turns out it has hidden defects
• when a contractor doesn’t perform as expected
• when your holiday reservations aren’t executed as agreed upon
• when you get into a conflict with your neighbors over the borders of your property
• when you get into a car accident

The premium you’re paying for legal insurance is around €150 a year, depending on your exact coverage and the insurance company. Most lawyers charge between €225 and €300 an hour, according to the website advocaatkostenvergelijken.nl. As you can see the yearly premium for legal insurance is cheaper than a single hour of legal counsel. So, taking out legal insurance can really save you a lot of money in case you get into a legal conflict, especially since solving most conflicts takes more than one hour.

Waiting period

Most insurers have a waiting period to prevent that people quickly take out legal insurance the moment they get into a legal conflict. The waiting period is usually six weeks to three months and specifically prevents you from using your insurance for disputes you already had, or disputes that you knew were coming. However, when you get into a totally unexpected conflict such as a traffic accident, you’ll still be covered by your legal insurance.

Added benefits of taking out legal insurance

To be fair, you’re probably not getting into legal conflicts left and right. Nevertheless, there are a few added benefits of taking out legal insurance for those few times you do get into a conflict. These are:

• It gives you immediate and easy access to legal advice and assistance of specialists
• Even if you don’t get into a conflict for many years and keep your legal insurance all that time, you’re still saving money on legal costs because lawyers are expensive
• Your insurer can save you a lot of work when a conflict takes you to court

When you harm someone or cause damage to someone’s property, you’re probably not covered by legal insurance. In those cases you usually need liability insurance.

Liability insurance

Offcourse you will never harm or cause damage to anyone else on purpose. But you could do just that by accident. Even if your actions don’t cause any accidents, you might still be liable for damages to someone else’s property. For example, when you install a new faucet in your bathroom and it causes a leak that seeps through to your neighbors home. You’re liable for the water damage that your neighbor suffers from that leak. And as you probably know, water damage can be costly. The same goes for something that’s entirely out of your control such as a broken water pipe that causes damage in your neighbors home.

Liability insurance covers these types of risks. Even though the liability insurance isn’t mandatory in the Netherlands, the consumers union strongly recommends everyone to take out liability insurance. They advise you to:

• Make sure your own risk is €0
• Thoroughly check what’s covered by each liability insurance before you take one out
• Cover yourself for €1,25 million or more
• Consider including a sports clause if you play a sport that can cause harm to others

Most liability insurances cover every family member living with you as well as visitors staying in your home and employees working in your home. If your pet causes damage to someone, your liability insurance covers it as well. Lastly, when you borrow someone else’s things and accidentally break it, liability insurance also includes the costs of repairing or replacing it.

Taking out the most suitable legal and liability insurance

There are a lot of different options and possibilities within the legal and liability insurances. Some insurers work with modules where you can only take coverage for modules that apply to your specific situation. Being as precise as possible in what to cover and what not to cover can make sure that you’re not over-insured and will save you a lot of money.

At Independent Expat Finance we help you to find the best insurance for you. We aren’t related to any insurer but work solely for you to get you what you need. If you’re interested in taking out legal or liability insurance, contact us at +31 (0)23-3030110 or info@inexpatfin.nl for a free and non-binding appointment.