Tackling false self-employment in the Netherlands: What you need to know

With rules changing on what counts as self-employment, it's important to make sure you are meeting the new requirements. For self-employed professionals (ZZP’ers), misclassification can lead to legal and financial problems. Read on to learn practical tips to protect your business and career.

What is false self-employment?

False self-employment happens when someone works as a freelancer but, in reality, operates like an employee. This practice bypasses employment protections and tax rules. To prevent this, the Dutch government has introduced stricter regulations. For ZZP’ers, failing to meet these rules can result in penalties or loss of business status, and as an expat, it can be especially easy to misunderstand the regulations.

Why does it matter for ZZP’ers and expats?

Many expats choose the ZZP model because it offers independence and flexibility. However, staying independent is key to avoiding misclassification. Genuine self-employment typically includes:

• Working with multiple clients.
• Controlling your own work schedule and methods.
• Using proposals and invoices to formalise agreements.

If you don’t follow these practices, you might face legal risks and tax issues under the new criteria.

Criteria for detecting false self-employment

The Dutch Tax Authority (Belastingdienst) uses four key criteria to identify false self-employment:

1. Independence: You must demonstrate autonomy by deciding your working hours, methods and using your own tools or materials.
2. Delegation of work: Your responsibility is to deliver results, not to personally perform every task. You should have the option to delegate work to others.
3. Embedding: Your work should be specialised and distinct from your client’s core activities. Similar tasks may raise concerns about your independence.
4. Entrepreneurial risk: You must bear the risks of your work, such as covering costs for mistakes or damages, without relying on your client to do so.

Understanding these criteria is crucial for proving your status as a genuine entrepreneur and avoiding penalties.

The role of proper administration

Keeping good records isn’t just a legal need - it’s your best tool for proving independence. Here’s how to manage your administration effectively:

Issuing proposals and invoices

In the Netherlands, proposals (offertes) have the same legal value as contracts. Always send clear, detailed proposals before starting a project to set expectations.

Maintaining accurate records

Track expenses, invoices, and contracts carefully. Good organisation helps show that you run an independent business and comply with Dutch tax laws.

Utilising digital tools

Online invoicing platforms make it easier to manage your administration. They handle invoicing, proposals, and tax calculations, saving you time and reducing stress.

Tips for staying compliant

If you are worried that you might not meet the new criteria, here are a few of the best ways to ensure you do so in the future:

• Understand Dutch tax rules: Learn about the criteria for ZZP’ers set by the Dutch Tax Authority.
• Diversify your clients: Avoid working for just one client. Having multiple clients shows you're independent.
• Seek expert support: A tax or legal advisor can help you with these rules, especially if Dutch if isn't your native language.

Good administration can make the difference

Being a ZZP’er gives expats independence and career growth in the Netherlands. But it also comes with responsibilities. By managing your administration and maintaining independence, you can succeed while staying compliant with Dutch laws.