Income & taxes
If you have an income, you pay tax
You receive an income if you are working. You can earn money with an employment contract, working freelance/with your own business, or doing both. Different taxes have to be paid for different kinds of income.
The difference between being self-employed and working freelance
The Netherlands Tax and Customs Administration (Belastingdienst) treats people working to order in a very different way from the employed. The Belastingdienst also makes a difference between artists working freelance and being self-employed in their own business.
Both freelancers and self-employed people can apply to the Tax Administration for a Working Relationship Declaration (Verklaring Arbeids Relatie, VAR). Some clients ask for a VAR to clarify the tax status of your working relationship.
Income and social security
If your are temporarily out of work, or work less, as a (former) employee, you will probably be entitled to claim benefits. You paid a premium for these social insurances during employment.
If you are self-employed, or work freelance, you are not entitled to these insurances. You can take out private insurance to cover this risk.