Netherlands Expat Guide: Pros & Cons of Moving to Amsterdam
The Netherlands has been proclaimed the country of the happiest kids and people in the world on numerous occasions. It’s a place where many foreigners dream of moving to, especially knowing that English is well-spoken and the place is beautiful.
Moving to Amsterdam or any other place in the Netherlands has just as many pros as cons, and while some aspects might not be important to you, they might be important to someone else – it all depends on the situation.
Who am I to give you tips on moving to the Netherlands? I have been fascinated by the Netherlands ever since I was in middle school. I started learning Dutch back at the university in Poland and pursued a Master’s degree in Dutch studies in the UK before finally relocating to the Netherlands to study. After graduation, I stayed in the country for 2 years and worked in Leiden, Hague and Amsterdam. I even worked at an international student office at some point, helping students with relocation for a bit.
Recently, I debated moving back to the Netherlands again, this time with my kids, and while my family loved the place we eventually opted against it – I’ll explain more in the post on why.
Is the Netherlands Good for Expats? Pros & Cons of Living in the Netherlands
I truly love the Netherlands and I had a pretty good life. Even my kids after spending a few days in the country started asking if they could move there.
The truth is, most expats moving to the Netherlands have no clue what Dutch bureaucracy is really like, and how many things you have to deal with.
Things can seem easy because the Dutch speak English very well (even if they claim they only speak a bit), but it doesn’t mean that you will be able to arrange everything easily without knowledge of Dutch.
These days the Netherlands is a true melting pot of people from all over the world. It’s not unusual, especially in bigger cities like Amsterdam, Haarlem, or Den Haag, for schools to have only 50% Dutch native speakers.
As everyone wants to move to Amsterdam, there is obvious pushback from locals who don’t want more immigrants. While you might think it’s unwelcoming, two main reasons for it make it understandable: the 30% ruling and the housing shortage.
Taxes in the Netherlands: What is 30% Ruling?
Taxes in the Netherlands are surely high. The average annual salary in the Netherlands is about 40,000 EUR. While it might seem low for Americans, it’s on the higher end of European salaries. If you make under 37,000 then you’ll pay less than 10% taxes which for me back in my student and entry-level jobs era was wonderful.
However, for those making between 37 and 73,000, you will be hit with 37% tax, and anything over will be taxed 49%. These tax rates are high and there’s no discussion about it. Yet, if you’re a foreign newcomer there’s a tax discount…
The 30% ruling is a Dutch tax advantage for highly skilled employees hired from abroad to work in the Netherlands. If you can meet the various conditions, your employer could pay up to 30% of your salary as a tax-free allowance for 5 years. It’s a huge amount of savings and other random benefits.
For example, if you qualify for 30 Ruling you can simply exchange your driver’s license for a Dutch one, while others have to redo the whole driving course and exam in Dutch basically, and European driver’s license exams aren’t easy.
The rule has been controversial for years and this is why from 2024 expats who meet the conditions receive the following tax benefits:
- 10% tax-free for the last 20 months.
- 30% tax-free for the first 20 months;
- 20% tax-free for the next 20 months;
Issues with Taxes for Self-Employed
The minimum tax rate is 36.55%, for people who earn less than € 19,982. The issue with self-employment is that things add up and at times you might be taxed more than you’re making.
You will pay a ridiculous amount in taxes if you make a good American salary. It won’t be needed or impressive to locals either as people aren’t interested in wealth.
There are no remnants of the class system or hierarchy at work. A CEO will happily interact and drink with junior employees. There’s much more equality and people tend to be respected no matter their job is. No one is judged for taking a break from work for a year to pursue their passion.
It is quite common to work part-time to enjoy their hobbies (4 out of 10 people actually do). You don’t live to work in the Netherlands, you work to live and that also includes the service industry. You’ll need to do many of your errands between 9-5 on weekdays and usually 11/12-3 pm on Saturdays, with no exceptions, even if you have a 9-5 job.
Regular shops close at 5 pm and if you need to go to the ban or any governmental institution, view an apartment, or anything, you’ll need to plan to go during the workday. Supermarkets are open until 9 pm, with the exception of Sundays.
Each city has a designated day of the week called koopavond (in Amsterdam it’s on Thursday) where all the shops are open until 9 pm.
Toeslagen
When you live in the Netherlands for over half a year you may apply for a toeslag, which is a governmental help if you don’t earn enough. It can help tremendously, especially if you’re a recent graduate trying to make ends meet.
You can ask for zorgtoeslag – health insurance support, huurtoeslag – additional money for your rent, and other ones concerning, for instance, your kid. Again, the whole process requires you to have a DigiD and the ability to read Dutch.
Make sure not to make ANY mistakes in your predicted yearly income (including holiday pay and other bonuses)! Dutch social services are very precise and you might be asked to give some of the money back if you claim an income lower than you received.
Filing Own Taxes
While taxes might sound scary, if you have a job in the Netherlands it’s actually pretty straightforward to file everything.
If you haven’t lived in the Netherlands for longer than a year or lived part of the year abroad, you’ll have to fill a Form M.
It’s basically a form containing over 80 pages of questions to fill in – all of them obviously in Dutch, regarding the income and expenses for the past year.
Do They Speak English in the Netherlands?
Most Dutch people speak excellent English, but they will always tell you they only speak a little bit of English 😉
Dutch is a fairly easy language to learn, especially for English speakers because it has many similarities. The grammar is simple and reading is straightforward.
Learning Dutch, however, can be frustrating because if they can hear that you’re struggling with Dutch people will just start talking to you in English. Don’t be offended, the Dutch are very practical people, and they just want the conversation to be as easy as possible.
I was proud of myself when people finally stopped answering me in English, but I will say that it took a lot of effort and a long time.
Do you have to speak Dutch when moving to Amsterdam? There are many expats who don’t speak any Dutch and get by, but honestly, it makes sense to learn some. For example, if you ever need to call the tax office for any toeslag or other queries, you need to know basic Dutch. You can’t count on any help from the Belastingdienst office, because it’s just they are not allowed to by law since English is not officially a minority. The only way around is to start speaking Dutch to them and then they MIGHT say it’s fine to switch to English. Because you made an effort to speak some Dutch.
DAFT Option for American Citizens Moving to the Netherlands
DAFT means Dutch-American Friendship Treaty and is an option for American citizens moving to the Netherlands as an entrepreneur. The process takes a while, but it’s not impossible to arrange it all. Especially if you can hire someone to help you with the documents.
The first step is to apostille birth certificates and marriage/divorce certificates. You are also required to have a capital of 4500 EUR deposited into your business account that you cannot spend.
You can bring your spouse and kids and they will be allowed to have a normal full-time job, but you (as a sponsor) need to work for only your own business.
The whole process takes a long time because appointments are schedule months in advance and most of the time you just have to wait. But, it’s a relatively straightforward process – at least until you arrive in the Netherlands (more on why under housing).
You can renew DAFT permit and it will be extended by 5 years, after which you can apply for permanent residence (after passing B1 exam in Dutch). Once again you’ll need to show proof that your business is earning revenue.
Housing Issue in the Netherlands
The housing crisis is a bit problem in the Netherlands. Many claim that “it’s bad everywhere”, but you have no idea how bad it is in the Netherlands unless you’re there.
You need to live in an apartment that allows registration to apply for a BSN number (Dutch social security number), because without this number you cannot work, you cannot get health insurance, study, or open a bank account – basically, you cannot live. A sublet or AirBnbs (many of which are banned anyway) don’t allow registration and in fact, not even all long-term housing does.
All apartments in the Netherlands will ask you to provide evidence that you make 3x rent in income, and if you’re an entrepreneur, you’ll need at least 6 months of bank statements to back it up.
Every rental gets thousands of requests and most apartments disappear within seconds. Other places still do castings for the apartments and whoever pays on the spot and gets approved wins. You need a broker who knows people who can get you an apartment – this is truly the only way, but it will cost you a fee of one month’s rent.
If you really want to find a room on your own, get an account on Kamernet and search through various Facebook groups for expats in the Netherlands. Be prepared to attend a few hospiteerabond, sort of casting for roommates. Current flatmates are going to ask you and other potential roommates a ton of (often ridiculous) questions and then call you back (or not) if they pick you.
Speaking of… yes, Dutch rental apartments don’t come with the floor. Consider that apartments and even student rooms come totally unfurnished. I mean like, completely unfurnished. Your apartment might come without floors and walls might be raw and unpainted unless an agency does you a favor. It’s common to bring your floor, lighting, everything including light switches with you when moving or negotiate with the previous owner to buy it all before they leave.
Needless to say, you usually won’t find a fridge, washing machine, or stove in the rental apartment. Since Dutch strongly believe in DIY culture you might get instructed that it’s easy to put the floor yourself and you’ll see many people move furniture on their bikes or carry a sofa around town. I’ve done it myself a few times.
Buying a House in the Netherlands
It’s easier to just buy a house in the Netherlands than it is to rent. It’s still not easy and again, requires a good broker (makelaar). Basically, you cannot be too picky, because the housing issue isn’t just in big cities, but also applies to small towns and villages.
You don’t need 20% to make things work. You can buy with even 5% if you wish. It’s definitely easier to buy a house if your budget is over 600,000, but for the 300-450,000 houses it’s a real battle.
Registration
As mentioned above, when you first land in the Netherlands you’ll have to register at the Town Hall and get your BSN number, in order to do anything.
It’s a simple process, but due to a huge influx of foreigners quite often, the appointments are booked way in advance.
To register you need a birth certificate (translated into English or Dutch), a housing contract, a job contract, or a university acceptance letter. Within 2 weeks you’re going to receive your BSN by post (many things work by post in the Netherlands).
How to Apply for DigiD Number
When you get your BSN you should immediately apply for a DigiD number. DigiD (short for Digital Identification) is a form of online ID that allows you to access many services and government websites in the Netherlands. It’s like a digital version of your passport.
You need your DigiD to do your administration online in the Netherlands. It will give you access to Studielink (if you study in Holland), allow you to do your taxes, and register for health insurance. When applying for DigiD you’ll experience your first problems if you don’t speak the language – the website is only in Dutch.
How to Open a Bank Account in the Netherlands
Opening a bank account is easy, as long as you’re either a student or have a job. The only trouble you can come across is that online banking is obviously all in Dutch, so my advice is to learn some basics.
Without a Dutch debit card, you can’t pay for some things like for example train tickets or pay for groceries. Credit cards aren’t that well supported and only some cards will work. Last time my Visa worked, but my husband’s Mastercard did not.
If you come from a country where checks are used like the USA, bear in mind they just don’t exist in the Netherlands. I really like the set-up of Rabobank, as their app is amazing and I never had major issues with anything.
Finding a Job in the Netherlands
Most people move to the Netherlands for a job already set up and get a relocation package. However, finding a job as a foreigner even from within the country isn’t easy. The competition is huge, so you really need to show off your skills, language abilities and unique assets to get noticed.
Healthcare
Health insurance in the Netherlands is compulsory. If you’re not going to organize your health insurance within the first 4 months you’ll get a fine (around €385) and the Dutch service will automatically assign you to one and bill you for it. The Dutch health system requires you to pay at least €145 per month for basic insurance coverage and you usually have about 800 EUR deductible (own risk).
Dutch healthcare is always a subject of many controversies because it has some advantages and many disadvantages with the biggest one being underprotective. It’s a running joke that no matter what’s wrong with you just take paracetamol because this is literally what the doctor will tell you to do.
I experienced it first hand when I broke my shoulder skiing and the doctor’s advice was that they could do an x-ray, but we know it’s broken so why waste money and time? I should just go home and take some paracetamol and wait it out.
Schools in the Netherlands
If you’re moving to Amsterdam or anywhere in the Netherlands with children, things might get tricky there for a few reasons. I explained how to register for school and how the school system works in general in another post, but most importantly: you might not have the option to register kids for an international school.
Just like in Mexico, while there are plenty of international schools they’re full. Many public schools are full too and with many different school types, your options might be limited and it’s a frustrating process.
Homeschooling is illegal in the Netherlands, but what put my family off is how strict the school is. You cannot miss school for any reason and if you do, you will pay a fine over 100 EUR a day.
When it comes to raising kids in the Netherlands your child will also need to pass the swim diploma to participate in pretty much any activity.
Expat Communities in the Netherlands
There are a ton of expats in the Netherlands and you won’t have any issues making friends. However, the truth is that expats and Dutch communities don’t normally mix. Most foreigners even after living in Holland for a decade still can’t even find one Dutch friend, unless it’s just someone at work they know (but don’t hang out).
Are Dutch people not friendly? Absolutely not, and I’d go even as far as to say that if you make a Dutch friend they will be genuine friends for life.
Get used to people openly talking about topics that could be taboo in your home country. It’s normal to talk about sex with people you just met. Be prepared to have some interesting chats on your first dates as well. The most important, Dutch make it easy as if they have a problem with you, or if they don’t like you, they will tell you.
If you learn Dutch and embrace yourself in the culture of the country, then you can make some Dutch friends. I have various Dutch friends and I know that it’s not impossible, but it requires effort on your part.
You’re probably thinking I’m trying to scare you away. I’m not – at the end of the day moving to the Netherlands is your own choice. However, you have to have a lot of patience to live here and it’s better to know what’s your signing up for.
Do you have any questions about moving to Amsterdam? Let me know in the comments below!
