Number of freelancers in Netherlands rises despite stricter tax enforcement
The number of self-employed workers in the Netherlands continues to rise in both the construction and healthcare sectors, despite stricter inspections by the Dutch Tax Authority targeting false self-employment. In total, the country counted 1,793,371 self-employed workers in the first quarter of this year, an increase of 5,051 compared with 1,788,320 registered in December, according to figures from the Netherlands Chamber of Commerce (KVK) Zzp Monitor.
The highest concentrations of zzp’ers are found in education, services, construction, arts, culture, sports and recreation, specialized business services, trade, and healthcare. The smallest shares are in real estate leasing and trading, energy supply, and financial services.
In construction, there are now about 224,265 self-employed workers. In healthcare, 202,138 self-employed professionals are active. The trade association ActiZ, representing around 350 healthcare organizations, said it does not have exact figures on how many zzp’ers have stopped working as independent contractors. “But we do see the movement of zzp’ers switching and becoming employees,” a spokesperson said.
GGZ Nederland, the association for mental health and addiction care providers, said self-employed workers performing regular assignments are largely being retained in the sector. “Of course, we want to employ these people, and we are against false self-employment. At about one hundred healthcare institutions, things are in good order,” a spokesperson said.
The organization also warned of mounting pressure from enforcement measures. “We are concerned about that, especially if people have to leave. That is a risk and comes at the expense of care. Moreover, hiring staff through temporary agency work is very expensive.” The group added that enforcement and possible fines hang “like the sword of Damocles over the sector.”
The Tax Authority has intensified enforcement since last year in cases where working relationships are found not to constitute entrepreneurship but rather employment or agency work. If irregularities are identified, clients may face back taxes. In cases of intent or gross negligence, penalty fines may follow.
