Cost of Living

The Netherlands has a wide cost-of-living range between cities. Amsterdam is genuinely expensive — a comfortable expat lifestyle costs €3,000–€4,500/month. Rotterdam is 25–35% cheaper for equivalent living standards. The Hague sits between the two. Groceries, utilities, and daily services are broadly similar across cities; the difference lies almost entirely in rent.

Opening a Dutch bank account requires your BSN number, so it cannot happen before you register at the gemeente. The major retail banks — ING, ABN AMRO, and Rabobank — all offer English-language online banking and are well-suited to expats. N26 and Wise are popular alternatives while waiting for a Dutch bank account, and Bunq offers English-first digital banking with fast account opening for residents.

The Netherlands uses a box-based income tax system. Box 1 covers employment income and is taxed progressively at 36.97% up to €75,518 and 49.5% above that (2025 rates). Box 2 covers substantial shareholding income (26.9%). Box 3 covers savings and investments at a deemed return rate. The 30% ruling (now 27%) dramatically reduces Box 1 taxable income for qualifying expats during their first 5 years.

The Netherlands has a large freelance economy. Registered self-employed workers (ZZP — zelfstandigen zonder personeel) operate under their own sole tradership (eenmanszaak) or through a private limited company (BV). ZZP workers do not have the same employment protections as employees and are responsible for their own insurance, pension, and tax payments. New legislation in 2025 is more strictly enforcing ZZP status.

The Dutch pension system has three pillars: AOW (state pension), occupational pension (funded by employers), and private savings. The AOW state pension builds up at 2% per year of Dutch residency between ages 17 and 67. Most employers in the Netherlands are legally required to enrol employees in an industry or company pension fund. Expats leaving the Netherlands can typically transfer accrued pension rights.