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1099 US employee living in the Netherlands

Last activity 20 August 2024 by Cynic

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Kaybrown1187

Hi all!


I live in the netherlands (i have a partnership visa and can work here) and recently accepted a position with a US company as a 1099 employee. I was hired as living in the Netherlands with the purpose of growing the EU client base. since im a 1099 employee with this company, i would have to account for all my taxes on my own. Does anyone have any resources on how to calculate this? Do you also know if I would be charged for taxes in the US or in the Netherlands? i want to make sure i wont have to pay double taxes especially because they would be putting the money in a US account that i would transfer to my Dutch bank account. any guidance on this would be helpful! im a little lost


thank you!

Cynic

Hi and welcome to the Forum.


You'd be a contractor, so working for another company, but not an employee.  It sounds to me like you would need to set up your own business, so my first port of call, if for no other reason than to check whether this is the right strategy, would be to the Kamer van Koophandel (KvK); this link will take you straight to their website, where it has their contact details.


I'm not a tax-expert, but in general where you pay taxes is dependent on where you live for the majority of the tax year; as a US citizen, you will still be making an annual declaration to the IRS and perhaps your home state.  If you live in the Netherlands, then you need to speak to the Dutch taxman (Belastingdienst); this link will take you straight to their website where they have their contact details.  It may be beneficial to speak to a Dutch tax adviser, Google will help you find one suitable for your situation.  There is a tax agreement in place between the US/NL governments; I'm not going to try and talk you through it, but you can get a copy from the IRS website; this link will take you to it.  Be warned that there is a subtle difference within the Dutch tax system, where they have both Income and Social taxes.  Income taxes can be affected by the tax treaties, but the social taxes are explicitly outside any tax treaty.


I hope this helps.


Cynic

Expat Team

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