Finding the right employee in the Netherlands takes time and effort. But losing a good candidate because your business is not ready to hire can be even more frustrating. Many foreign businesses face this problem because they learn about Dutch hiring rules only after finding the right person. 

Imagine finding a suitable candidate and agreeing on their salary, only to discover that you still need to arrange Dutch payroll registration, understand wage tax and social security rules, and prepare an employment contract that follows Dutch law. Setting up a Dutch BV can take several weeks and add extra costs. By the time the paperwork is ready, the candidate may have accepted another offer. Businesses expanding their workforce across borders should understand the requirements for international hiring before making employment commitments. Your business loses a good employee simply because the hiring process started too late.

Trying to skip these steps can create bigger problems. Some businesses pay employees from their foreign bank accounts or hire them as freelancers to avoid the paperwork. However, if Dutch authorities consider them regular employees, the business may have to pay unpaid taxes, social security contributions, and fines. From 2027, rules for businesses that supply workers in the Netherlands will also become stricter.

The good part is that you can hire international employees without an entity in the Netherlands if you choose the right hiring option. You just need to choose the right hiring option and follow the Dutch rules from the start. This guide explains how to do that, which option may suit your business, and what mistakes to avoid.

Three Ways to Employ Staff in the Netherlands Without Your Own Dutch Company

In the Netherlands, every employee must have an employer who is legally responsible for paying their salary, handling taxes, and managing social security. Even if your business does not have a Dutch company, you can still hire an employee in two ways:

Option 1: Hire Through an Employer of Record (EOR)

An Employer of Record (EOR) is a company that already has a legal business presence in the Netherlands. It hires the employee on behalf of your business and becomes their official employer under Dutch law. This allows foreign businesses to hire employees in the Netherlands without an entity of their own.

Your business still manages the employee's daily work, sets their targets, and checks their performance. The EOR handles the employment contract, salary payments, payroll taxes, social security contributions, and other employment paperwork.

You pay the EOR a monthly service fee in addition to the employee's salary and other employment costs. This option is usually faster than setting up your own company and can often be arranged within one to two weeks. It is a practical choice for foreign businesses hiring their first employee or testing the Dutch market.

Before choosing an EOR, check whether the provider follows Dutch rules for supplying workers. The Netherlands is introducing a new law called the WTTA, which brings licensing requirements for businesses that supply workers to other companies. Registration and notification requirements start in 2027, while a full licence will be required from 2028. Ask the EOR about its current registration and plans to meet these requirements.

Option 2: Register Your Foreign Business as an Employer in the Netherlands 

You do not need to set up a Dutch BV to hire an employee in the Netherlands. Your existing foreign company can register directly with the Dutch Tax Administration (Belastingdienst) as an employer.

To do this, you need to fill in the registration form for foreign employers. Once your registration is approved, you receive a Dutch payroll tax number. This process can take around one week, but the time may vary.

After registration, your foreign company becomes responsible for the employee's salary and payroll. This means you must calculate and pay their salary, deduct Dutch wage tax, pay the required social security contributions, provide payslips, and submit payroll tax returns. You can handle these tasks yourself or hire a Dutch payroll provider to manage them.

This option gives your business more control and helps you avoid the monthly service fee charged by an EOR. However, your company must make sure that all salary payments, taxes, and employment records follow Dutch rules.

Option 3: Set Up a Dutch BV

A Dutch BV is a private limited company registered in the Netherlands. Your foreign business can set up a BV as a local company and hire employees through it.

The BV becomes the legal employer and takes responsibility for employment contracts, salary payments, payroll taxes, and social security contributions. It must also follow Dutch employment laws and meet its regular accounting and tax filing requirements.

Setting up a Dutch BV involves choosing a company structure, working with a Dutch notary, registering with the Dutch Chamber of Commerce (KVK), and arranging tax and payroll registration. The process usually takes several weeks and involves setup costs.

This option gives your business direct control over its Dutch operations. It is generally more suitable if you plan to hire several employees, build a long-term team, or establish a permanent business presence in the Netherlands.

However, setting up a BV just to hire one employee may involve more costs and paperwork than necessary. It is worth considering how much you plan to grow before choosing this option.

Which Option Is Right for You?

The right choice depends on how many people you plan to hire and how long you plan to stay.

1. Choose an EOR if you’re testing the market or hiring one to three people. You get speed and no payroll work, and you accept a recurring fee that adds up as the team grows.
   
2. Choose registering as an employer if you already have the skills in-house, or a payroll partner, to run Dutch payroll. It suits small, steady teams that want control without a monthly EOR fee.
   
3. Choose a Dutch BV if you expect to build a real team. It takes several weeks to set up, but the cost per employee usually falls as you grow, and you control everything. A common path is to start with an EOR and move to a BV once the Dutch team proves its value.

How to Hire an Employee in the Netherlands: Step by Step

Found the right person and picked your hiring option? Now comes the part that decides whether the hire goes smoothly or turns into a headache. Follow these seven steps in order, and nothing important gets missed.

1. Check that they can legally work in the Netherlands: People from the EU, EEA, and Switzerland can work freely. Everyone else usually needs a work or residence permit, and your company may need to be an approved sponsor. Some EORs can help with this.
   
2. Sign a Dutch employment contract: It should state the salary, working hours, holidays, notice period, and any trial period. If you use an EOR, the EOR prepares the contract for you.
   
3. Ask the employee to get their BSN: This is the Dutch citizen service number. Payroll can't be filed without it, so they should arrange it early.
   
4. Make sure payroll tax is registered: With an EOR, this is already covered by their number. If you register as an employer yourself, you get your number from the Dutch tax office (Belastingdienst).
   
5. Check if your industry has special rules: Some industries require a collective labour agreement (CAO) or a set pension plan, which can change pay and benefits.
   
6. Run the first payroll: Pay the salary with a payslip, and make sure tax and contributions are deducted and reported.
   
7. Keep up with regular filings: Payroll reports are due on a fixed schedule, so decide who is responsible for them.
   

What Can Go Wrong When You Hire Without a Dutch Entity?

Even if your business is based outside the Netherlands, you must follow Dutch employment and tax rules when hiring local employees. Missing these requirements can lead to fines, extra costs, and other problems. Here are three common mistakes to avoid:

Choosing an unregistered EOR: If your EOR does not meet Dutch registration rules, your business may face fines. Always check its registration before signing.

Unexpected tax responsibilities: Your employee's work may create tax obligations for your foreign company, especially if they sign contracts or work from a fixed office in the Netherlands.

Using the wrong employment contract: Your contract must follow Dutch employment laws. Missing rules on salary, working hours, or notice periods can lead to legal problems and extra costs.

How FlorinTax Helps You Hire in the Netherlands

Hiring in the Netherlands can be difficult when your business does not have a local company. You need to choose the right hiring option, complete the required registrations, and make sure payroll and employment follow Dutch rules. Managing all these steps from another country can take time and delay your hiring plans.

FlorinTax helps foreign businesses manage these requirements. We can help you choose between hiring through an EOR, registering your existing foreign company as an employer, or setting up a Dutch BV. For businesses establishing a local company, we also support Dutch corporate income tax filing obligations. If you choose to register as a foreign employer, we can help request your Dutch wage tax number and arrange payroll support. We also help businesses manage wage tax, social security contributions, payslips, and other payroll requirements.

If you start with an EOR but later decide to build your own team in the Netherlands, we can also help you set up a Dutch BV. This allows your business to move to a local company structure as it grows.

Hiring in the Netherlands Without a Dutch Entity: What to Do Next

Start by deciding what your business needs most: a quick hiring process or long-term control. If you want to hire quickly, an EOR may be the right choice. If you want to manage payroll directly or build a larger team, registering as a foreign employer or setting up a Dutch BV may be better.

Once you choose the right option, you can start preparing the required documents and registrations. Planning can help you avoid delays, extra costs, and the risk of losing a good candidate. If you need help choosing the right option, book a free consultation with FlorinTax.