Press release

Digital nomad lifestyle on the rise

KVK highlights important points to consider

More and more people are trading their permanent workplace for a flexible workplace abroad. It is estimated that there are as many as 40 million digital nomads worldwide. Among entrepreneurs in the Netherlands, too, there is a growing group who work location-independently and continue their business from abroad. The Netherlands Chamber of Commerce KVK has identified this development and is calling on digital nomads with their own businesses to thoroughly investigate the consequences for their business form, registration, and tax obligations.

“It sounds appealing: working from a beach in Bali or a cafe in Lisbon. But there is more to it than just a good wifi connection,” says Jacob van der Vis, business advisor at KVK. “If you, as an entrepreneur, stay abroad for a longer period of time, this can have consequences for where you have to register your business, how you pay tax, and whether you have to change your legal structure.”

To help entrepreneurs get started, KVK has set up a step-by-step plan with practical information and checklists for digital nomads. Entrepreneurs can also contact KVK business advisers for personal advice.

KVK advises digital nomads to check the following, among other things: 

  • Where should you register your business? Your business address often determines where you are liable for tax. You need to have a physical address in the Netherlands to register in the Business Register. A PO box is not permitted, but a virtual office or postal address can offer solutions.
  • Do you need to change your business structure? In some cases, it is wise or necessary to change the business structure, for example from an eenmanszaak (sole proprietorship) to a BV (private limited company).
  • What are the consequences for your VAT return and income tax? There is a tax difference between emigrating permanently and working temporarily from abroad.
  • What about insurance and your pension? In EU/EEA countries, European regulations usually apply; elsewhere, other rules may apply. Check with the UWV and/or healthcare authorities to find out what the status is.

“Being a digital nomad offers a lot of freedom. To get the most out of it, good preparation is very important,” says Van der Vis. “We are happy to help entrepreneurs realise their dreams in a responsible and sustainable way.”