Content Updated August 2024
The Netherlands is a vibrant country renowned for its exceptional quality of life, outstanding infrastructure, and welcoming culture. From picturesque canals to cutting-edge technology, the Netherlands offers a diverse and cosmopolitan atmosphere that attracts professionals from around the globe.
In this guide, we explore what it’s like to live and work as an SAP consultant in the Netherlands, covering everything from salaries and visas to healthcare and culture.
Table of contents:
- Working Culture
- Work Permits and Visas
- Salaries and Day Rates
- Taxes and Getting Paid
- Cost of Living
- Healthcare
- Transport
- Language
- Culture
- Food
- Location
Working Culture
Trust plays an important role in Dutch culture and the workplace. Dutch people are direct, expect initiative and independent work, and are laid-back and do not get offended easily. During business meetings, Dutch people usually wear suits, introduce themselves by their first and last names, exchange business cards, and shake hands with eye contact, which is considered a sign of honesty.
In the workplace, however, the working culture is informal, there is no dress code, and colleagues can be referred to by their first names. Networking is an important part of business, and personal recommendations are taken very seriously when looking for a job.
Work Permits and Visas
For SAP consultants from outside the EU/EEA, Switzerland, Canada, Australia, and New Zealand, working in the Netherlands for more than three months requires a residence and work permit. The application for these permits is handled through the Immigration and Naturalisation Service (IND), either by the hiring company or the consultant. You can find detailed information and check if you qualify for any exceptions based on your education or work history on the IND website.
Obtaining work permits for non-EU nationals can be challenging for Dutch companies, as they need to demonstrate that no suitable candidates were available within the Netherlands or the EU before a permit can be granted. This rigorous process often leads companies to prefer hiring candidates from the EU/EEA or Switzerland who do not require work permits.
As a non-EU candidate, it’s beneficial to highlight any specialised skills or experience that might make you stand out.
Salaries and Day Rates
Hourly Rates
The average hourly rate for SAP consultants in the Netherlands typically falls between €70 and €100. However, those with specialised expertise, particularly in high-demand areas like SAP Business Warehouse (SAP BW), can command rates as high as €122 per hour. Entry-level consultants might expect lower rates, starting from €44 to €51.50 per hour.
Annual Salaries
On an annual basis, SAP consultant salaries generally range from €54,897 to €81,000, depending on the individual’s experience and specialisation. Consultants with 10-19 years of experience often find themselves at the higher end of this spectrum, earning upwards of €69,000 per year. Specialisation in niche SAP modules can further enhance earning potential, with some roles offering up to 38% higher compensation compared to more general SAP positions.
Contract Duration
SAP consultancy contracts in the Netherlands are typically set for three to six months. However, it is common for these contracts to be extended, with many consultants remaining on projects for up to two years or more. Permanent positions are also available, particularly within established companies that prioritise long-term SAP operations and continuity.
Market Demand
The strong demand for SAP consultants in the Netherlands is fueled by the country’s strong economy and the presence of numerous multinational corporations. This demand helps maintain competitive day rates, especially for consultants with niche skills or extensive experience. The ongoing need for digital transformation and specialised SAP expertise ensures that consultants with the right qualifications and experience are well-compensated in this market.
Taxes and Getting Paid
When starting work in the Netherlands as an SAP consultant, you’ll need to obtain a BSN (Citizen Service Number). This number is required for tax purposes and allows your employer to make the necessary mandatory contributions on your behalf.
How to Obtain a BSN
To get a BSN, you need to register with the local municipality (Gemeente) where you will be living. This process typically involves making an appointment at the municipal office and bringing along necessary identification (such as a passport), proof of address, and possibly your work contract. Once registered, you will receive your BSN, which you will need to be able to open a bank account and access healthcare in the Netherlands.
Tax Rates
The Dutch tax system features rates ranging from 36% to 52%, based on income. However, as an SAP consultant, you might be eligible for the 30% ruling—a significant tax relief for highly skilled migrants. This ruling allows you to receive 30% of your gross income tax-free, effectively lowering your overall tax burden. Eligibility is determined by your salary level and length of stay.
30% Ruling Benefits
The 30% ruling reduces your effective tax rate to around 36%, providing a significant financial advantage for SAP consultants moving to the Netherlands. To qualify, your gross annual salary must meet the Dutch government’s minimum threshold, currently set at €41,954 (or €31,891 for individuals under 30 with a master’s degree). The ruling can be applied for up to five years and may also cover specific reimbursements like international school fees, reducing relocation costs.
Getting Paid
Payments in the Netherlands are generally straightforward, with salaries typically deposited directly into your bank account on a monthly basis. Ensure you have a Dutch bank account set up, as this will facilitate smoother transactions and possibly avoid any additional banking fees associated with international transfers.
Cost of Living
On average, the cost of living, including rent, is around 4-5% higher in the Netherlands compared to the UK. This slight increase is due to higher prices for groceries, dining out, and some other consumer goods in the Netherlands, but this is balanced somewhat by lower housing and transportation costs in certain areas.
Housing in major Dutch cities like Amsterdam, Rotterdam, and The Hague is notably expensive, with rents being about 7-14% higher on average than in the UK. For instance, a one-bedroom apartment in Amsterdam’s city centre might cost between €1,200 and €2,000 per month, which is comparable to, or slightly more than, similar accommodation in London. However, outside the major city centres, the cost of rent in the Netherlands tends to be more affordable.
Grocery prices in the Netherlands can be 6-20% higher than in the UK, with particular increases seen in items like chicken, cheese, and fresh produce. Dining out is also slightly more expensive, particularly for fast food. However, public transportation costs are generally lower in the Netherlands, and many residents use bikes or public transit instead of owning a car, which can help offset some of these higher expenses.
Despite the higher costs, the Netherlands offers a high quality of life with excellent healthcare, good public services, and a strong emphasis on work-life balance. For SAP consultants, who typically earn higher-than-average salaries, these factors contribute to a comfortable lifestyle in the Netherlands.
To manage costs effectively, many professionals opt to live in smaller cities or suburban areas near major hubs. Cities like Haarlem, Utrecht, or Amersfoort provide more affordable housing options while still offering easy access to business districts in Amsterdam and other major cities.
Healthcare
The healthcare system in the Netherlands is considered one of the best in the world. Health insurance is mandatory and is deducted from the salary. There are different levels of insurance, with the basic level covering medical appointments and treatments, medicine, and maternity. If an SAP consultant holds the European Union Health Insurance Card (EHIC), they will be covered if their stay is temporary. If the stay is not temporary, they must take out a Dutch healthcare insurance policy as soon as they have a residence permit.
Transport
Amsterdam is famous for its cycling culture, with more bikes than residents. Around 63% of people cycle daily, thanks to the extensive network of dedicated bike lanes.
Beyond cycling, the Netherlands has an efficient public transport system. Trains connect cities and rural areas seamlessly, and larger cities like Amsterdam, Rotterdam, and The Hague have well-developed tram, bus, and metro systems. This strong public transport network often makes car ownership unnecessary, particularly in urban areas.
Language in the Netherlands
Dutch is the official language in the Netherlands, but English is widely spoken, especially in business and urban areas. The Netherlands consistently ranks among the top countries for English proficiency among non-native speakers, making it easy for non-Dutch speakers to navigate daily life and work.
While learning Dutch isn’t essential, especially for those working in international environments, knowing basic Dutch phrases can be helpful in social situations and for integrating into the local culture. Many expats find that even a minimal understanding of Dutch enhances their experience and helps build connections with locals.
For those interested, there are numerous language courses available, both online and in-person.
Culture
The Netherlands is a democratic country, well-known for its tolerance and liberal ideas. Although cosmopolitan, the cities have managed to keep their Dutch charm, creating a feeling of being in a small town where everyone seems to know everyone. It is an international country, with people from different nationalities living together in the same areas. Each neighbourhood usually has its own market, the best place to get fresh seasonal produce and flowers. The most popular sport in the Netherlands is football, followed by field hockey and volleyball. Due to being a flat country, cycling is also popular as a leisure activity.
Food
The Dutch are known for Gouda and Emmental cheeses, delicious filled cakes, and great coffee. In addition to their traditional food, there is also a wide range of worldwide cuisine and Michelin-starred restaurants. Craft beer is very popular, with new breweries popping up across the country. Two of the biggest beer companies, Amstel and Heineken, are also based here.
Location: Which city is best for me?
The big hubs for SAP contracts in the Netherlands are Amsterdam, Rotterdam, Eindhoven, and The Hague. These are all midsize cities with less than a million inhabitants, but there is lots of buzz, and the atmosphere is very international.
Amsterdam is a city known for its great infrastructure, with one of the most charming town centres in Europe, protected by the UNESCO World Heritage. It has a huge variety of leisure and entertainment activities from museums and scenery walks to a vibrant nightlife with plenty of restaurants and bars.
Eindhoven has become a hub for technology and design and is also popular for start-ups. The city has earned the nickname of “Lichtstad” or City of Light due to the presence of the electronics giant, Philips. It is also a university city with a relaxed atmosphere and a great social scene.
Rotterdam is the largest port in Europe and is a contemporary city with unique experimental architecture. It is located 30 minutes away from the Hook of Holland, where locals enjoy going to the beach and where one can also take a ferry to England. The city is vibrant and modern and famous for its art and food festivals.
The Hague is the seat of the national government and home to many EU institutions, multinational companies, and more than 150 international organisations. It is a wealthy conservative city with a very distinct international atmosphere. It is also very picturesque, with a beautiful coastline, plenty of green areas, and a few national parks nearby.
Final Thoughts
The Netherlands is a highly-organised country with great infrastructure, a low crime rate, an excellent education system, and a very cosmopolitan culture known for its good lifestyle, cleanliness, open culture, and equal rights. As an SAP consultant, you can find plenty of job opportunities in the Netherlands, and with the favourable tax climate, multilingual population, and great quality of life, it is definitely worth considering working and living in this beautiful country.
Ready to start your SAP career in the Netherlands? Explore the latest SAP jobs across the region.