Cross-border hiring of Dutch ZZPs: Key risks and developments

Understanding the Dutch approach to independent contractors

Independent contractors, known as Zelfstandige Zonder Personeel (ZZPs), are a common part of the Dutch workforce. For foreign companies considering cross-border hiring of ZZPs in the Netherlands, understanding the ZZP concept is crucial. ZZPs operate as freelancers without employees. However, Dutch authorities closely scrutinised how foreign companies engage these contractors.

Dutch tax authority: stricter classification of ZZPs vs employees

The Dutch tax authority has adopted a stricter stance when distinguishing between ZZPs and employees. If a contractor is found to function as an employee, the company may face additional tax, labour, and social security obligations. The main risk is misclassification – treating a worker as a ZZP when their role aligns more with that of an employee. To make their assessment, the authorities examine factors such as control, supervision, and integration into the company. 

Effective 01 July 2026, an hourly fee of at least EUR 38 will be required, otherwise workers will have a strong legal position to claim they are employees. 

A new special committee has been proposed to resolve disputes about ZZP versus employee status. This committee’s rulings will be binding for labour law, taxes, social security, and more. When this committee will be established is yet to be determined.

Risks for foreign companies: unexpected Dutch obligations

Foreign companies hiring Dutch ZZPs face specific risks. If contracts are not carefully drafted and executed, the Dutch authorities may reclassify the relationship as employment. This can lead to unexpected obligations with respect to Dutch labour law regulations. In some cases, especially if a permanent establishment (PE) in the Netherlands is considered present, withholding payroll taxes and social security contributions can apply. Proper documentation and clear contract terms are essential to avoid these pitfalls. These risks can apply especially when the Dutch qualification of the contract differs from the company’s local qualification.

To minimise risks, foreign companies should ensure contracts clearly define the ZZP relationship, and avoid ambiguities that suggest employment. Substance is more important than form. Include clauses about variable pay, independence, freedom of work methods, and the absence of supervision. Avoid embedding ZZP workers into the company. Consulting Dutch legal and tax experts before finalising contracts is highly recommended.

Conclusion

Cross-border hiring of Dutch ZZPs offers flexibility but comes with significant risks if not managed correctly. With stricter classification by tax authorities and the possible introduction of a special oversight committee, foreign companies should prioritise proper contract execution. Understanding Dutch ZZP definitions and seeking expert advice will help avoid unexpected obligations and ensure compliance.

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Toon Hasselman is an experienced (30 years) high level VAT and customs specialist to both national and international companies. He provides simple and practical solutions, quick “outside the box” alternatives if necessary, and promotes a no-nonsense approach with conclusive solutions at a fair cost. Toon is also the Global Vice Chair of the GGI Indirect Taxes Practice Group.