Workforce Payments Guide The Netherlands

Last updated: Dec 17, 2023

Payroll Frequency
Fiscal Year
1 January- 31 December
Employer Taxes
13.46% to 25.72%
Employee Costs
Central Bank
Dutch Central Bank
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3rd Party Payments

Statutory filing payment method: SEPA/ IBAN
Monthly filing deadline: End of the following month
Annual filing Deadline: December

Payments Coverage

Papaya Global fully supports payments in the Netherlands.

The funding currencies include AED,AUD,CAD, CHF, DKK, EUR, GBP, HKD, NZD, SEK, SGD, USD. The payout currency is EUR payments made on the same day.

Contractor Payments

Papaya Global supports payments to contractors in The Netherlands. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency



IBAN Example Belguim


IBAN in print NL69 INGB 6435 6907 58
Country Code NL
Digit Code 69
Bank Code INGB
Bank Account Number 6435690758


Know Your Customer refers to the policies and regulations that require certain businesses to have a clear picture of who their customer is.

According to local laws and regulations, the service provider needs to complete a KYC procedure before the first service is being delivered. Without a finalized KYC, the provider cannot perform any services.

The following documents and information is required for the KYC procedure:

  • Most recent structure/ overview of the group, including the names of ultimate beneficial owners (UBO), if applicable, signed by a board member
  • Certified copies of passports or other legally accepted IDs of the statutory directors of the group
  • Certified copy passports of at least two directors (if there are multiple directors). If they are independently authorized, one certified copy from one director will be sufficient
  • Copy of deed of incorporation of the company
  • Confirmation of completeness and correctness of the attached UBO register
  • Form regarding the UBO identification

Definition of UBO:

A UBO is an ultimate beneficial owner or ultimate interested party. The institution is obliged to establish the identity of the UBO. The two criteria needed to qualify a person as a UBO concern the holding of ultimate ownership or the ultimate control of a client, through the holding of shares, voting rights, ownership, interest or other means.

For B.V.s and N.V.s, this is the natural person who is directly or indirectly more than 25% economically entitled to the company, or the person who exercises control. Stockbroking firms are exempt from this 25% rule.

Natural persons with a smaller interest can also be regarded as a beneficial owner; for example, because they otherwise have ultimate control over a client. More persons of a trust must be regarded as the ultimate beneficial owner. In any case, this concerns the trustees of a trust, but also the founder, any protector and the beneficiary (s) of a trust.

Requirements for a certified passport copy:

  • A lawyer registered with the bar association or a notary must certify the passport copy of a UBO as a true copy, and verify the identity of the person.
  • The certification must include the following phrases and details:
    • The document is a true copy of the original document
    • The document has been seen and verified by [name certifier], [title certifier]
    • The photo is a true likeness of Mr/Mrs [name director]
    • [Location & date of certification]
    • [Professional stamp/seal]

Banking Regulations

Banking regulations in the Netherlands are governed by the Dutch Central Bank (De Nederlandsche Bank), which is responsible for supervising and regulating financial institutions in the country.

In terms of cross-border workforce payments, the Netherlands is part of the Single Euro Payments Area (SEPA), which aims to make cross-border payments within the European Union as easy and efficient as domestic payments.

SEPA has established common instruments, standards, procedures, and infrastructures to ensure that all transactions (domestic and cross-border) offer the same conditions of ease, efficiency, and security. The SEPA Credit Transfer and SEPA Direct Debit are two payment instruments that have been developed to facilitate cross-border payments within the European Union.

In addition to SEPA, there are other country-specific banking laws and regulations that impact cross-border workforce payments in the Netherlands.

For example, the Dutch Money Laundering and Terrorist Financing Prevention Act (Wet ter voorkoming van witwassen en financieren van terrorisme) requires financial institutions to conduct customer due diligence and report suspicious transactions to the relevant authorities. The act also requires financial institutions to verify the identity of their customers and maintain records of their transactions.

Another regulation that impacts cross-border workforce payments in the Netherlands is the Dutch Foreign Tax Credit Act (Wet op de inkomstenbelasting 2001), which allows taxpayers to claim credit for foreign taxes paid on their income.

Opening a Bank Account

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

  • Proof of ID: This could be a passport or identification card.
  • Proof of address: For example, your rental contract or a utility bill.
  • Company’s articles of association: This is a document that specifies the regulations for a company’s operations.
  • Proof of business registration: Your business should be registered and have a Chamber of Commerce (KvK) number.
  • Dutch Citizen Service Number (BSN): This is issued upon registration at the municipality.
  • Residency permit: This is required if you come from outside of the EU.

If the owner is eligible to open an account online, they could complete the process in as little as 10 minutes and receive the new account number within 4 hours.

However, if they are not eligible to open an account online, it could take a few days while the new account details and bank card are mailed out. In some cases, the process can take longer for non-residents or when missing some required paperwork.

The bank will confirm the probability of a successful application to open an account within 5 business days of receipt of the Quick Scan. Please note that these are general timelines and the exact duration may vary depending on the bank and individual circumstances.

International Banks

Some of the foreign banks operating in the Netherlands include:

  • ABN Amro
  • ING Group
  • Rabobank
  • Deutsche Bank
  • HSBC
  • Barclays Bank
  • BNP Paribas
  • Credit Suisse
  • Bank of America
  • Citibank

Major Local Banks

Some of the major local banks in the Netherlands include:

  • ABN Amro
  • ING Group
  • Rabobank
  • De Volksbank
  • Amanah Group Holdings
  • Anadolubank Nederland N.V.
  • Bank Mendes Gans (cash management)
  • Bank Nederlandse Gemeenten (financing for (semi-)publicly owned organisations)
  • BinckBank (electronic trading platform)
  • Bunq

Local B2C Payments Tools


A popular online payment method in the Netherlands that allows customers to make secure, real-time bank transfers directly from their bank account to yours. When making a purchase online, a customer is redirected to their own bank’s website to complete the payment, and the funds are transferred immediately. Supported by all Dutch banks, it’s a convenient and widely accepted method of payment for online purchases.

Debit card

Debit Cards: The top payment method across the entire retail sector in the Netherlands, despite the high number of iDEAL transactions online. Around 60% of all retail transactions in the country (averaged across online and offline) are paid with debit cards. The most common cards in the country are Maestro and Vpay.

SEPA Direct Debit: Similar to iDEAL in that it works as a bank-to-bank online payment method. Customers can pay for purchases directly from their account, and the funds are transferred to the merchant’s account. SEPA uses the International Bank Account Number (IBAN) to process the transactions across banks. SEPA works in all European Union countries and offers you and your customers an easy and secure way to pay.

Digital wallet

Digital wallets, such as PayPal, Apple Pay, Google Pay, and Amazon Pay, have also gained popularity in recent years, holding nearly 30% of the online payment market share.

Buy Now, Pay Later (BNPL) services are especially gaining popularity in the Netherlands.


Cryptocurrency transactions are allowed in the Netherlands. However, cryptocurrencies are still not accepted as digital money. The District Court of Overijssel and the Finance Minister of the Netherlands accept virtual currencies, such as Bitcoin, as exchange media.

It’s important to note that while there are no significant barriers to entry for virtual asset service providers (VASPs), the country has some legislative specificities that should be taken into consideration.

In 2020, the 5th Anti-Money Laundering Directive (AMLD5) came into force in the EU, leading the Netherlands to amend its Money Laundering and Terrorist Financing Prevention Act (Wwft). This means that the crypto industry is no longer in a legal gray area, and now must fulfill several conditions to be able to provide services to Dutch clients.

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