Become a digital nomad: a step-by-step plan
Do you dream of becoming a digital nomad? Working remotely from abroad could affect your registration with the Netherlands Chamber of Commerce (KVK), your municipality, and the Netherlands Tax Administration. Find out more with this step-by-step plan.
This article assumes that you are already an entrepreneur in the Netherlands and you are registered in KVK’s Business Register. If you have not registered with KVK yet, find out how to register your business.
1. Check the consequences for your KVK registration
If you are going abroad temporarily to work remotely, or emigrating and continuing your work from your new location, it might impact your KVK registration. Whether you remain registered depends on your personal situation.
Consider these 3 questions:
Will you still work in the Netherlands?
Does your business require you to travel to the Netherlands regularly for business activities? Then you do not always need to deregister from KVK. However, you do need a business address in the Netherlands If you are unsure about how much time you will spend working in the Netherlands, contact KVK.
No more business activities in the Netherlands?
You must deregister from the KVK Business Register if you no longer do any work in the Netherlands. And you no longer have a business address here. You must do this within 7 days before the emigration date. Even if you will still have Dutch clients. To stay registered, you must be in the Netherlands regularly for your work. KVK can check this. For example, through the Municipal Personal Records Database (Basisregistratie personen, BRP). If you do not deregister your business in time, then KVK will deregister your company from the Business Register if it is no longer active. This is called automatic deletion. You may incur additional costs. Such as a fine for not filing a tax return with the Netherlands Tax Administration on time.
How long will you be abroad?
If you will be working remotely from abroad for less than 6 months, it might be more convenient to remain registered with KVK in the Netherlands.
There are conditions for this:
- You must have good reasons why you want to keep your business in the Netherlands. For example, because you have many regular customers in the Netherlands or if you still carry out work here.
- You must have a business address in the Netherlands. This may not just be a PO Box. You may register your business at the address of family or friends. You will then need a declaration of consent.
Learn more about being self-employed abroad. Since every situation is different, KVK advises contacting the KVK Advice Team before you go abroad.
2. Check if you need to deregister with the municipality
If you live outside the Netherlands for more than 8 months per year, you must deregister from the municipality where you were registered. This applies even if these months were spread throughout the year. The municipality will deregister you from the Personal Records Database (BRP). They may ask for your new (temporary) home address. Your details will automatically be entered into the Register of Non-Residents (RNI). If you then move one or more times to a new address abroad, you must report your changes via the online RNI portal. If your company is still registered in the Netherlands, you must also pass on your new address to KVK.
3. Arrange your tax affairs
Emigration
The Tax Administration is automatically notified when you deregister from the municipality and the Business Register. You will need to settle your taxes with them.
Will you still supply goods or services to Dutch clients from abroad? You will be considered a foreign entrepreneur for VAT purposes. Then you file a turnover tax return and may also have to pay VAT in the Netherlands. Read more about the VAT rules in the Netherlands.
Moving abroad temporarily
If you will work remotely from abroad temporarily and your business remains registered with KVK, you need to file your income tax return and VAT return in the Netherlands as usual. This also applies if you are working for a foreign client.
Avoid double taxation
You may have to file income tax returns in 2 countries. But that does not mean that you pay tax twice over the same income. Tax treaties help avoid double taxation. These are agreements between countries about which country will tax certain income. Learn more about avoiding double taxation.
4. Check local laws and regulations
Be aware of local laws and regulations in your destination country. Check the country overview on the RVO website (in Dutch) for information on trade laws, sectors, marketing, payments, and subsidies in a country.
5. Arrange your social insurances
Working abroad will affect your social insurances, such as contributions for your old age pension (AOW), sickness, healthcare, and unemployment benefit. Visit the UWV website (in Dutch) to find out if you are insured for social security abroad. This depends on the country or countries where you will work. For example:
- a treaty country (in Dutch)
- a non-treaty country (in Dutch)
See what you need to arrange for each insurance:
If you live and work outside the Netherlands, you typically cannot keep your Dutch health insurance. The requirements depend on the length of your stay abroad and the type of work you do.
If you work in one or more EU, EEA (including Switzerland), or treaty country for longer than 5 years, you will no longer be insured under Dutch social insurance. You will need to submit an A1 certificate showing in which country you pay social insurance contributions. You can apply for an A1 certificate online via the Sociale Verzekeringsbank (SVB).
If you are working temporarily in another EU country, ask your health insurer for a European Health Insurance Card (EHIC). This card allows you to get free (or reduced-rate) essential medical assistance. The card is also valid in EEA countries and Switzerland.
If you retain a business address in the Netherlands, you can take out business liability insurance or professional indemnity insurance here. With business liability insurance, you are insured if you, your product, or your employees cause material and personal damage. You are then insured for the costs and further financial consequences.
Professional indemnity insurance covers you if you make professional errors. For example, if you give wrong advice as a consultant. Or you make a mistake in a client's tax return as an accountant. For some professional groups, there are special professional indemnity insurances tailored to their specific activities.
Travel insurance insures you against damage while travelling. Insurance cover may vary. Some packages only cover medical items and luggage. Other packages also cover legal expenses. Also note that not every travel insurance policy is meant for long stays. Several insurance companies offer special travel insurance for longer trips.
6. Check if you need a visa and work permit
If you work outside the EU, you usually need a visa and work permit. Contact the Dutch embassy or consulate in your destination country for information about applying for them.
Within the EU
If you work within the EU, you do not need a visa. But you must be able to show a valid identity card or passport. Please note that a driving license may not be valid identification in some countries.
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Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK