From Expat to Entrepreneur: Starting a Side Hustle in the Netherlands

The Netherlands is renowned for its strong work culture and entrepreneurial environment, making it an enticing prospect for expats wanting to set up a side hustle. However, knowledge of the practical and legal landscape is essential if you want to keep your venture low-key, start small, and register it as a business. Here’s your guide to navigating the process and cutting through that red tape.

What Is a Dutch Business License?

Most businesses in the Netherlands are required to have a Dutch business license, which means registering with the Kamer van Koophandel (KVK), the Dutch Chamber of Commerce. This isn’t just a formality but a legal requirement.

Become a ZZP’er

The Dutch generally use the term ZZP’er to refer to a self-employed person. ZZP stands for “Zelfstandige Zonder Personeel” (Self-Employed Without Employees). It refers to freelancers, independent contractors, and solo entrepreneurs who work for themselves (no boss) and do not hire employees (hence “zonder personeel”). They are registered with the Dutch Chamber of Commerce (KVK).

Can I Have a Side Hustle Without a Dutch Business License?

Short answer: Not really. If you intend to make an independent income by starting a business in the Netherlands, not through traditional employment, you are legally required to register with the KVK. This obligation falls on locals, expats, and full-time and part-time entrepreneurs.

Are there any exceptions?

As with most rules in the Netherlands, there are nearly always some exceptions, and here, a couple may apply:

Exception 1: The Occasional, Hobby-Level Income

If you earn only a small amount from a hobby, such as selling crafts at the local market or giving an odd yoga class, registration may not be required immediately. However, once your activity is regular, profit-oriented work with more clients, registration is expected.

Exception 2: Freelancing Through Payroll Companies

Some expats send their invoices and receive payments through payroll or via “umbrella” companies such as Tentoo or verloning.nl and are, therefore, not required to register with the KVK on their own. The payroll company pays you as a kind of pseudo-employee. The company takes care of all necessary deductions and compliances.

This can be a way around registration for those who are somehow testing the waters and don’t need to obtain a KVK – either yet, or ever.

What Counts As a Business In The Netherlands?

You are deemed to be a business (that must register) if you:

Offer goods or services for profit
Have more than one business client (or are looking for clients)
Set your own rates and working conditions
Risk the chance of profit or loss

This holds even if your side hustle is operated alongside a regular job. The Dutch tax authorities (Belastingdienst) and KVK look at the substance of your activities and where you operate, not just whether you are making a lot of money or doing it very often.

Steps To Begin Your Side Hustle

Here are the steps to follow to bring your side hustle to life;

Step 1: Check Your Right To Work Legally.

For EU/EEA/Swiss citizens, you may stay and work freely in the Netherlands. Non-EU Citizens need a residence permit granting self-employment rights. Common routes include applying for the Dutch-American Friendship Treaty (DAFT) if you are a U.S. citizen, the startup visa, or the self-employed residence permit.

Step 2: Review any employment conflicts of interest

If you’re engaged in a primary occupation for at least four days a week, check if your employment contract mentions any clauses with regard to side activities (nevenactiviteiten), non-competition, or non-solicitation restrictions.

To seal the deal and avoid any later conflicts, it is best to discuss the matter with your employer and get any agreement in writing (if your contract does not already give such).

Step 3: Register with the KVK

Now it’s time for registration. Make an appointment at your local KVK office. On the day, bring your BSN number, proof of address and residence permit. This is where you pay the registration fee and receive a KVK and VAT (BTW) number. Now, you’re all set!

Step 4: Handle The Finances

Open a Dutch bank account for business transactions. Bunq, Revolut Business, or KNAB offer low-cost options. Traditional banks (ABN, ING, Rabobank) charge fees which can range from ~€5 to €15 per month. Keep accurate and up-to-date records of income and expenses. Understand your tax duties: you’ll want to file earnings tax and, in most instances, a quarterly VAT return.

Also, think about taking out any relevant business insurance. For instance, liability or disability insurance is available for business risks if you cause harm to others or if you become ill and cannot work.

Common Mistakes To Avoid

Ignoring Registration

If you fail to register when necessary, you may face fines and back taxes. The Dutch authorities are strict and will enforce this. You’ve been warned.

Overlooking Taxes

Even side hustles in the Netherlands are required to collect VAT (if they are not exempt) and report all income. Record-keeping should begin on day one.

Violating Employment Contracts

A side hustle conflicting with your employer or breaching its contract may cause dismissal and legal action.

Final Thoughts

Hopefully, you’ve grasped more about side hustles in the Netherlands. If yours is anything beyond a mere pastime, registering with the KVK and tax compliance will likely be needed. Payroll companies offer a flexible alternative for those not ready to go all in. Still, for most expats, it is best to embrace the registration process and turn your side gig into an official business. Starting a side business is much more than a way to pull some extra money in; it’s also an effective way to integrate, network, and grow in the Netherlands. For a more comprehensive glimpse, consult the KVK website or seek tips from a local business advisor to ensure that your entrepreneurship adventure gets off on a smooth, legal start.