Dutch Contractors Financial Checklist 2014
health insurance
If they move to the Netherlands or pay income tax to the Dutch authorities, expats are expected to purchase health insurance through a Dutch insurance company. Health insurance packages are variable, certainly depending on the package selected. Prices can range between €95 and €350.
liability insurance
This is a must if you live and work in the Netherlands. If you, your children, partner or pet damage someone else’s property, your party will be responsible for the costs; you are expected to have this insurance coverage. Normally included in your home insurance, it can be purchased separately for around €35 per month.
Accommodation cost in the Netherlands
Finding a suitable place for your accommodation is often a challenge. In big cities it can take a long time and be much more expensive. The Netherlands is no exception, as Amsterdam and The Hague are very expensive places to live.
Also, buying a house in the Netherlands is often very complicated. It is recommended to use an English speaking intermediary. Once a house is purchased, the buyer must invest in home insurance, which will cost around €45 per month. The owner is also responsible for the property tax of €300 per year. This amount will depend on the location and size of the house. Another cost is sewage and garbage, with an average of €200 per year.
Renting a house exempts tenants from the above costs; The costs are borne by the owner. However, don’t rule them out as they may be in addition to rent.
Clothing
Clothes are usually expensive within the Dutch borders. A large number of foreign companies add mark-ups to their clothing compared to the prices sold in their home countries.
You will be able to find almost all of the usual high street shops to be found in the UK. For work wear, Men @ Work and Etam are widely available but can be expensive. There are cheaper alternatives, such as V&D or HEMA, but the quality will be lower.
Transportation
Most Dutch public transport now uses chip and PIN card systems; including trams, trains, buses and other types of metro transportation. The average costs are not too high, for example; a one-way train ticket from Schiphol airport to Amsterdam main train station costs around €3.80. A similar trip from Amsterdam to Utrecht costs around €6.80.
However, taxis are very expensive. A typical 12km trip will set you back around €35. To cut costs, there is a shared taxi known as ‘Deeltaxi’. This works by charging a system of prices by zone and expatriates share their trip with other people. This drastically reduces the cost (a 12km trip will cost as little as €8.50), but you will need time on your side as you will be zigzagging all over the city first.
eat and drink out
Compared to other EU countries, cigarettes and alcoholic beverages are relatively cheap. However, eating in a restaurant is expensive. Fast food prices are similar to those in the UK.
Tips are usually included in a service charge, so tipping is not always necessary. Leaving a tip of 10% of the total bill is customary when paying for a taxi and waiters and waitresses are expected to leave a small tip if they provide good service.
child benefit
All children within the Netherlands are entitled, until they are 18 years of age or older, to childcare allowance. It is granted quarterly, or every three months, and is based on the situation and gross income of the person or couple.
Average cost of living in the Netherlands (Amsterdam prices, 2014)
Accommodation costs per month
One bedroom apartment in the center of Amsterdam – €1500
One bedroom apartment in Amsterdam Outside the center – €1000
Central Three-Bedroom Apartment – €2,240
Three Bedroom Apartment Exit Center – €1,450
Groceries
Milk – 1 Liter – €1.10
Loaf of Bread – €1.40
1KG of Rice – €1.70
12 Eggs – €2.50
1KG of Chicken Breasts – €6.90
Marlboro Cigarettes – €5.96
Utilities/Home
Per minute – mobile to mobile call rate – €0.33
Monthly Internet Package 1.5mb/s – €20
Gas, Water and Light – €160
go out to dinner
Three-course meal in the Normal restaurant – €35-60
Big Mac – €3.50
Coffee’ Coffee – €2.70
Beer – €4.20
Bottle of Coca-Cola – €2
Transportation
Rate per KM by Taxi – €2.08
City Center Train Fare – €2.80
Petrol Per Liter – €1.77
Annual tax return
At the end of April (the end of the tax year), all people living in the Netherlands must declare their income and expenses for the last tax year. Based on the person’s claims and declarations, the Dutch government will decide whether the person should pay back certain amounts or receive a cash payment. As an example given; a family with two working parents and a child in daycare can claim around €2,500 each year.
It is strongly recommended that expats find an industry expert or industry professional to help them with taxes, as this can be a very complicated Dutch process.
