Working in the Netherlands vs. Working in the USA

Every country has its own rules and regulations when it comes to education, employment, or paying taxes. Suppose a job opportunity calls you to a country away from your native one. In that case, it’s important to be familiar with the employment laws of that country. Chances are there’s a vast difference in the rules, work culture, job security, and taxation laws. While the thought of settling abroad does sound exciting, it can be overwhelming to get used to the various legal implications of your job or daily work routine.

Every year, a large number of people move to the Netherlands from the USA to get a taste of the European work culture. Like every other expat, American citizens have to face a lot of challenges in adjusting to the employment laws here. Be it the monthly income, healthcare costs, or sick leaves, the Netherlands follows many different rules compared to those back in the US.

Working in the Netherlands v/s Working in the US.

While priorities vary for every individual, we have listed some of the important pros and cons of working in the Netherlands as compared to the US.

Americans are usually of a competitive mindset. The race to be ahead of everyone and the need to be the best drives them. The Dutch are comparatively more laid-back when it comes to work culture. They go with the saying “Doe normaal”, which means being good enough rather than being the best. But despite this attitude, the Netherlands is one of the most innovative countries in the world. They don’t like to show off.

In the Netherlands, most employees have temporary work contracts, which can later be converted to permanent. People in the US mostly join with a permanent contract.

The Netherlands is a country with one of the shortest working weeks. People usually don’t work after five or six in the evening and value time over money. In the US, many people work long hours and stay late in the office.

Dutch companies offer a lot more vacation days as compared to companies in the US. People in the Netherlands also have more freedom to take vacation days the way they want. The US is not as flexible when it comes to claiming vacation days. The main reason behind this is job security. In the US, you can get fired anytime, and most people don’t take vacations for fear of losing their jobs.

Like vacation days, taking sick leaves is also more flexible in the Netherlands. If you’re sick for a longer time, your employer must pay 70% of your salary for a maximum period of up to two years. Plus, if you fall sick on vacation, you can get those days changed to sick days with no or minimal impact on your salary. In the US, employees have more restrictions concerning sick leaves.

In the Netherlands, people like to be direct and honest with their ideas and opinions. They are not scared of voicing them in front of their superiors. In the US, employees are skeptical of putting their thoughts across. There is less transparency between the employees and the management.

If you’re going through burnout, it is considered a normal sickness in the Netherlands, and you are allowed to take your time off from work. Despite the much higher burnout rate in the US, people have less flexibility to take a break.

Before accepting a job offer in the US, it’s essential to understand the employer’s healthcare coverage. Health insurance is very expensive in the US and costs around $8000 per year for a single person. In the Netherlands, healthcare is much cheaper and not an important criterion when taking up a job.

One of the biggest advantages of working in the US is making almost three or four times the amount of money compared to the Netherlands. Of course, it depends on the profession and your post in the company. For example, a software engineer in the US can make millions of dollars in a year. In the Netherlands, a person in the same position earns much less.

Taxes are way more expensive in the Netherlands than in the US. If you fall under the highest taxpayer bracket in the Netherlands, you pay around 49.5% tax from your total income. In the US, you pay around 22% – 37% tax to the federal government, depending on your salary. The taxes imposed by the state government vary with each state. If you are filing Dutch taxes, be sure to use Blue Umbrella’s income tax calculator. It is available for those who are employed and self-employed.

Filing Taxes in the US for US Expats

Filing taxes can be one of the most tedious and annoying tasks. It is time-consuming and can have serious implications if not done correctly. But with experts to help you at each step, the process is easy and hassle-free.

For every American citizen living in the Netherlands, it is mandatory to file US tax returns. Irrespective of where you live, you must declare your income to three levels of government in the US, federal, state, and sometimes local. If you hold foreign accounts with a balance of over $10,000, you must file an FBAR (Report of Foreign Bank and Financial Accounts). You can undergo the Streamlined Filing Compliance Procedure if you’ve missed filing your previous years’ tax returns.

Still trying to figure out the tax filing process? Blue Umbrella is the answer to all your doubts. With an easy approach and tons of experts to guide you, they provide a step-by-step explanation of everything related to income taxes. All you need to do is sign up to their platform and upload your documents. They take care of the entire process without you having to worry about anything. You can contact them for any questions from anywhere in the world.

So as an American, should you move to the Netherlands from the US for work? It depends on your priorities. If you want to earn more money while paying less taxes, consider living in the States. But if you’re looking for a better work-life balance and more freedom to take vacations, the Netherlands can be a good place for you.

While that is a good point for debate, we hope we have cleared your doubts about filing taxes in the US if you’re working and living in the Netherlands.