All you need to know about living in the Netherlands as an expat

Is the Netherlands a good place to live? In 2023, the country officially had the highest quality of life index in the world. It is also one of the leading economies in Europe and home to many multinational companies, with English being the language of business. No wonder it is a magnet for expats, with 15% of its population being foreign-born. In this article we talk about life in the Netherlands in general and share some practical tips on how to live in the Netherlands as an expat.

Benefits of living in the Netherlands

• High quality of life
• Work-life balance
• Excellent education and integration programmes
• Efficient healthcare
• Wide use of English
• Expat job opportunities with multinational companies

Job market

Is it hard to move to the Netherlands? It may not be if you are looking for a job there. The employment market looks very promising for expats in the Netherlands: in Q4 2023, there were 114 vacancies per 100 unemployed, according to the official data. Many multinational corporations are headquartered there, and companies such as Shell, Philips, Unilever, KLM, Heineken are, in fact, of Dutch origin. There is high demand in the Netherlands for expats, both unskilled workers, like cleaners or warehouse staff, and highly skilled professionals, especially in IT, logistics, agriculture, energy, and healthcare among others.

The Netherlands expats can only work in companies registered as recognised sponsors. They also must meet a number of requirements which vary depending on the type of employment. For example, for a highly skilled migrant visa, the applicant’s income must be at least €2,234.95. The country also participates in the European Blue Card scheme, which may be a convenient path for a highly skilled expat, for example, from India, to start a life in the Netherlands and be able to earn a decent living and help their family back home.

Visas and residence permits

To enter the Netherlands for a period of up to 90 days, third-country nationals usually need a Schengen visa. But how to live in the Netherlands if planning to stay for a longer term, such as for work? In this case you must obtain a residence permit. It usually needs to be accompanied with a provisional residence permit (machtiging tot voorlopig verblijf, MVV).

Is it hard to move to the Netherlands? It might be if your goal is to live there permanently. The Dutch take the integration of expats very seriously, and there is a requirement to pass the Civic Integration Exam Abroad before you apply to the MVV. However, those entering the country for temporary residence purposes are exempt, including but not limited to:

• Students and trainees
• Employees (including intra-corporate transferees) and self-employed persons
• Seasonal labourers
• Highly skilled migrants
• Holders of a European Blue Card

Visa fees

After legally living in the Netherlands for 5 consecutive years, it is possible to apply for permanent residence, but the applicant must meet certain criteria and there are some exceptions.

Mandatory registration

For those expats staying in the Netherlands for up to 4 months long, it is necessary to register as non-resident at one of the 19 Dutch municipalities with a Non-residents Records Database desk.

If staying for more than 4 months, you must register with the local municipality within 5 days of your arrival. In most cases, it is recommended you contact the municipality in advance to book an appointment and clarify the list of necessary documents. Your details will be entered into the Personal Record Database, and you will be assigned a citizen service number (burgerservicenummer, BSN) which is necessary for any interaction with the government services (for example, in healthcare or for taxation). You also need a BSN to open a bank account, which is vital for the Netherlands expats, including those who need to support their families back home.

Keep in mind that if you move from the Netherlands abroad, you must visit the municipality to deregister.

Banking

The Netherlands expats can open an account in any of the 96 local and international banks, both traditional and digital. The largest institutions in the country are ABN AMRO, Rabobank, ING and SNS Bank as well as international Deutsche Bank, BNP Paribas, and HSBC among others.

To open a bank account, the following documents are needed:

• Valid ID (passport or ID card)
• BSN
• Residence permit
• Proof of address (utility bill or rental agreement)
• Employment contract if applicable

Once your application is approved, you will receive your card and get access to the online services. Interestingly, in the Netherlands it is common to use debit cards (pinpas) and credit cards might not even be accepted in smaller outlets.

Having access to banking services is especially important in the Netherlands as the country is one of the leaders in the adoption of a cashless economy. Even more so for expats who often need to transfer money abroad, to their home countries. Although for this specific purpose there are solutions much more efficient than banks, such as online money transfer services like Profee. As an EU licensed provider, it facilitates money transfers from Europe, including the Netherlands, to dozens of countries – instantly and at very competitive rates.

Cost of living

In Mercer’s 2023 Cost of Living Ranking, Amsterdam is ranked the 28th most expensive city in the world and the 8th in Europe, and the Netherlands is consistently one of the most expensive countries in Europe.

In the Netherlands, for expats a lion’s share of expenses goes to cover property rent, especially in Randstad, the area with the country’s four largest cities: Amsterdam, The Hague, Rotterdam, and Utrecht. In Amsterdam, for example, a one-bedroom flat is let for €1,000-€4,000 a month. Available for rent are traditional properties, such as flats or townhouses, but there is a selection of more exotic boathouses. Keep in mind that properties are usually let unfurnished. The most popular platforms for property rentals are Direct Wonen, Pararius, and Funda.

To sign a rental agreement, an expat needs to provide their BSN and an employment contract. An international student may be asked to present a bank statement. As a rule, agreements are signed for a minimum period of 12 months. It is usual for the tenant to pay a deposit of 1-3 months’ rent and to cover utilities which amount to €250-€300 per month for a two-people household.

A similar sum should be allocated for the monthly grocery shopping for two people.

Overall, with the rent at €2,000, living in the Netherlands as an individual expat may be expected to cost between €2,500-€3,000 a month. For a family of four the life in the Netherlands would require expenses close to €5,000. At the same time, the average monthly net salary is around €3,200.

Healthcare

All expats in the Netherlands must have private healthcare insurance. The plans usually cover a set of basic services and cost around €135 a month on average, but there are options to include additional services, such as dental care, at an extra charge.

To get any medical treatment, you must first register with a GP (general practitioner, or huisarts) providing your insurance and BSN. After examination, the GP will refer you to a hospital or respective specialists.

Transport

The public transport service in the Netherlands is very efficient. In the cities, there are buses, trams, and public bicycles, and Amsterdam and Rotterdam also have metro and ferries. To use any kind of transport you need an OV-chipkaart, a chip card similar to a credit card. The OV-chipkaart itself costs €7.50, and you then need to top it up and check it in and out for each trip. Note that only cashless payments are accepted. Also, if you travel by train, the card balance must be at least €20.

The Netherlands is probably one of the most bicycle-friendly countries in Europe, and in large cities such as Amsterdam cycling is often the most efficient and affordable means of transport.

Driving is also very common despite both fuel and parking being prohibitively expensive, especially in cities. Expats in the Netherlands are allowed to drive if they hold a valid driving licence. However, if their licence was issued in a country outside EU/EFTA, then it can only be used for 185 days after the registration at the municipality.

Childcare and education

Is the Netherlands a good place to live? It definitely is for families with kids. Childcare is available in the Netherlands from birth to the age of 4, followed by pre-schooling. All approved childcare institutions can be found on the National Childcare Register (Landelijk Register Kinderopvang). Expats must be officially registered (hold a BSN) to apply to such institutions. Keep in mind that the waiting lists are often very long, and the waiting period can be up to 18 months. For now, the cost is around €8-€10.50 per hour, but there are plans to introduce free childcare in 2027. There is an option to hire an unregistered babysitter, but such services might not be considered for childcare allowance purposes.

For families with young children, schools are one of the benefits of living in the Netherlands. Public schools are government-funded and free for all children, including foreign ones. Some teach in dual languages and others offer specialised programmes in the Dutch language and culture of the Netherlands for young expats. For those aged between 5 and 16, it is mandatory to attend school. The education is free, but parents are asked for a 'parental contribution' (ouderbijdrage) to cover trips and extra-curricular activities.

In addition, there are international schools, which might be the best choice for those staying in the country for a shorter term. Despite rather high fees (€7,500 a year on average), places there are limited, so it is better to apply in advance.

Note that children also must obtain a BSN to be able to enrol in a school.

When it comes to higher education, there are no free programmes for foreigners in the Netherlands (but plenty of scholarships). Nevertheless, all 12 universities are in the global top 300 of the Times Higher Education Ranking and offer degrees in English. The cost of studies for an international student would be between €6,000 and €15,000 a year for a bachelor’s degree and between €8,000 and €20,000 for a master’s degree. The three best universities are the Delft University of Technology, the University of Amsterdam, and Wageningen University & Research.

Taxes

The Netherlands is a welfare state, which means that taxes there are rather high, plus all residents’ worldwide income is taxable. There are three categories of income, known as ‘boxes’, each with its own tax rates. Box 1 comprises income from work, benefits, and home ownership.

Income tax rates in 2024 (Box 1)

*Including 27.65% of national insurance contributions

Box 2 covers income as interest or holding (at least 5%) in a limited company and is taxed at 24.5% for income of up to €67,000 and at 33% for any excess. Box 3 includes shares, savings, investment property, and such, all taxable at 36%.

Certain expats in the Netherlands can benefit from the so-called 30% reimbursement ruling, under which 30% of their salaries is tax-free for a period of 5 years. There are as well several tax benefits for international employees, especially working in fields with workforce deficits, such as engineers and IT specialists. For expats, this is one of the benefits of living in the Netherlands, since many of them also need to send money back home. If you are one of them, try Profee to save your time and money and support your loved ones.

As you can see, the Netherlands can be a great place to live for an expat, but a certain level of income is needed to ensure the desired level of comfort. Still, the country is full of excellent employment opportunities with a robust social security system, and we hope that the information above comes in handy if the Netherlands is on your list of potential destinations.