Practical question: self-employed in Holland, living abroad? Thread poster: betheheart
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Hi all, I have a practical question I am hoping some Dutch users on this forum may have an answer to. I have a Dutch passport, but I have been living abroad for the past couple of years for a university degree. I'm nearly finished with my studies now, and I would like to live with my partner in his home country of Hungary. Would it be possible for me to register as self-employed in the Netherlands (and pay taxes there) - with clients from all over Europe - while living in another country full-ti... See more Hi all, I have a practical question I am hoping some Dutch users on this forum may have an answer to. I have a Dutch passport, but I have been living abroad for the past couple of years for a university degree. I'm nearly finished with my studies now, and I would like to live with my partner in his home country of Hungary. Would it be possible for me to register as self-employed in the Netherlands (and pay taxes there) - with clients from all over Europe - while living in another country full-time?
[Edited at 2010-04-26 22:48 GMT]
[Edited at 2010-04-26 22:49 GMT] ▲ Collapse
| | | | | E101 Self Employed Certificate | Apr 27, 2010 |
E101 Certificate is a standard EU Certificate which allows employers from different countries to exchange employees. As far as I know it works for self employed too. You would need then to register yourself as a self employed in Netherlands and submit the E101 application form to the Department of Social Insurance in Netherlands. There should be a special field where you will indicate the EU country/countries where you will further work, the periods, reasons etc. The Application forms are differ... See more E101 Certificate is a standard EU Certificate which allows employers from different countries to exchange employees. As far as I know it works for self employed too. You would need then to register yourself as a self employed in Netherlands and submit the E101 application form to the Department of Social Insurance in Netherlands. There should be a special field where you will indicate the EU country/countries where you will further work, the periods, reasons etc. The Application forms are different from country to country, but the whole procedure is the same.
Search "E101 self employed form" on google and you might find more information.
[Edited at 2010-04-27 07:30 GMT] ▲ Collapse
| | | | | not a good idea in my experience | Apr 27, 2010 |
'Never leave your village' the old saying goes. It keeps life simple but oh so boooring.
I hoped to be able live and work in France but stay registered for taxation etc. in the Netherlands. However, the EU regulations are such that you are obliged to pay tax etc in the country where you work full-time. As GB is not (yet?) a full EU member, I would suspect this would make things even more complicated.
Then there is national health insurance and pension schemes etc etc to... See more 'Never leave your village' the old saying goes. It keeps life simple but oh so boooring.
I hoped to be able live and work in France but stay registered for taxation etc. in the Netherlands. However, the EU regulations are such that you are obliged to pay tax etc in the country where you work full-time. As GB is not (yet?) a full EU member, I would suspect this would make things even more complicated.
Then there is national health insurance and pension schemes etc etc to think about as well. You then have to have an accountant in GB to do your tax return and get your bookkeeping there and back. In any case, it is all much easier (and I suspect less expensive) to have all of those things in the country where you live and work.
Good luck! ▲ Collapse
| | | | Williamson 
United Kingdom
Local time: 02:17
Flemish to English
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| Consult an accountant | Apr 27, 2010 |
Why register in Holland, when you live intend to live in Hungary?
Is it because to be a translator, Hungary requires a degree in translation (according to Hungarian colleagues), that totally superfluous piece of paper which can harm your career as a translator.
BTW: The UK has been a full-EU-Member since 1973, but is inside the E.U. to be mentally outside the E.U. If you can't beat them, join them. Sometimes, it is not easier to have those things in countries where you live an... See more Why register in Holland, when you live intend to live in Hungary?
Is it because to be a translator, Hungary requires a degree in translation (according to Hungarian colleagues), that totally superfluous piece of paper which can harm your career as a translator.
BTW: The UK has been a full-EU-Member since 1973, but is inside the E.U. to be mentally outside the E.U. If you can't beat them, join them. Sometimes, it is not easier to have those things in countries where you live and work, especially not if like France, they are on top of the tax-misery index. France: the world-champion of taxes and bureaucracy.
Given that you are in the UK: consult a local accoutant about setting up a company which seconds you to Hungary.
[Edited at 2010-04-27 08:28 GMT] ▲ Collapse
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Krzysztof Kajetanowicz (X)
Poland
Local time: 03:17
English to Polish
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If you live in Hungary and do your work there, there's no way you can legally avoid paying Hungarian tax.
| | | | | why & some elaboration | Apr 27, 2010 |
@Jennifer: It's not about the UK (where I live right now), but Hungary (where I will be living come this summer).
@Williamson: It is both because of the prohibitively-complex bureaucracy that seems to surround self-employment in Hungary (especially in the case of translation) and because of the prohibitively high taxes in Hungary.
I intend/expect for my translation income to be small-scale, as the financial division between my partner and me currently veers more toward... See more @Jennifer: It's not about the UK (where I live right now), but Hungary (where I will be living come this summer).
@Williamson: It is both because of the prohibitively-complex bureaucracy that seems to surround self-employment in Hungary (especially in the case of translation) and because of the prohibitively high taxes in Hungary.
I intend/expect for my translation income to be small-scale, as the financial division between my partner and me currently veers more towards his end of the scale for various reasons.
However, the Hungarian tax system seems to be such that taxes would take away such a substantial portion of that income the situation would not be feasible. In terms of high taxes and bureaucracy, Hungary can give France a run for its money.
@Krysztof: From internet research I have gathered that within the EU, in certain situations you can choose to pay taxes in the country where you work, rather than your country of residence (tax treaties - such as is in existence between Holland and Hungary - would prevent double taxation). If my translation business is registered in my native country, would the income not be considered as having been earned there - thus making me eligible to pay taxes there, rather than in Hungary? ▲ Collapse
| | | | | offshore structures | Apr 30, 2010 |
betheheart wrote:
From internet research I have gathered that within the EU, in certain situations you can choose to pay taxes in the country where you work, rather than your country of residence (tax treaties - such as is in existence between Holland and Hungary - would prevent double taxation). If my translation business is registered in my native country, would the income not be considered as having been earned there - thus making me eligible to pay taxes there, rather than in Hungary?
Yes, it is possible, but only because Holland is an "offshore" jurisdiction, it means that there can be held limited Companies in Holland (incorporated and registered there), but the Company would be controlled and administrated from some other country. In your case, it is even better, Hungary is an EU state too (so, almost same laws, small bank charges etc.)
You only have to register a Company in Holland, not as a freelancer, but a Company. You would be thus its BO and also its "employee". All your income will be considered the company's income and will be taxed provided the tax laws in Holland, concerning Holland Companies. Of course, you, as an employee can have a salary and that salary would be taxed as for individuals.
If you will not have big income, it is not profitable at all (maintainance fees, etc), try to calculate and to see exactly if paying Hungary taxes is not better than paying Holland Company maintainance and incorporation fees. It is though more profitable in Cyprus (the lowest corporate taxes in Europe).
Contact a corporate provider from Holland and ask about incorporation and maintainance fees, about Holland Corporate Tax, etc. Then make some calculations and see if you don't want to pay Hungary Taxes.
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