Calculate your monthly salary as a Freelancer in the field of Data Science
This tool helps you calculate your salary as a freelancer in the field of Data Science in The Netherlands. Freelancers are obligated to be registered at the Dutch Chamber of Commerce (KVK). As a freelancer you pay between 30-40% tax (depending on the yearly worked hours and hourly rate) and you will receive tax (BTW) that you have to return to the government. This tool is an estimation based on Dutch market data.
Everyone can start as a Freelancer.
How do you become a freelancer?
It is very easy! You have to register at the Dutch Chamber of Commerce (KVK) and set up a company (eenmanszaak).
How does it work?
You are obligated to state your revenue tax every quarter of the year. After you have created an account on www.belastingdienst.nl you will declare your revenue and the taxes (21% BTW) that your clients have transfered to you above the hourly rate. In some cases you are allowed to withhold taxes from payments that you have made for you company (f.e. a new laptop). At the end of the year (in april or may) you give in your total incomes on which you have to pay income taxes. On average you have to return 30-40% of you revenue to the Dutch government.
What benefits do I have as a freelancer?
In the Netherlands, people who register and start a company at the KVK apply for the 'starting loyalty rule'. This means the government gives you discount on the amount of tax that you have to pay. You are allowed to use the rule 3 times in the first 5 year after the launch of your company. However, there are rules attached to this discount. You have to declare at least 1250 hours per year to at least 3 different clients.
What costs can I declare as a freelancer?
When a client pays a invoices, you will receive 21% tax above the hourly rate. In the Netherlands, this is called BTW. You should reserve this amount te rest of the year and pay back the BTW to the Dutch Government. However, if you generate costs for you freelance company, you can reduce the tax (BTW) from the tax (BTW) that you have to return to the government. F.e. these costs apply to a laptop and office rent.
How does the invoice system work?
After our agreement, we make sure to setup an invoice with your company name and the clients. We work with a third party invoice system that pays the invoice within 24 hours. Automatically you will receive 85% of the invoice, as Worksuite holds in 15%.
What are the cancel terms for an assignment?
Normally this would be 30 days. However you can discuss this with the client.
In the Netherlands, the average monthly salary for Data Scientists is €3929 bruto per month
Based on data from Glassdoor, the average monthly salary for a data scientists is €3929. However, it mainly depends on the size of the company and the level of seniority of the position. At a startup or smaller company, the average salary for a Data Scientist with low experience is around €2700 bruto per month. At a corporate or a company that heavily invests in Data Science, the salary is more like to be around €4500 for data scientists with a couple years of experience and a proven trackrecord. Also it strongly depends on your study background and your side activities. It is definitely not easy to become a great data scientist.
What you should know when starting as a Freelancer.
You have to build up your own pension.
Freelancers are responsible for building up their pension. Try to save 10% - 15% per month of your earnings.
When you are not able to work, you don't get paid.
In any case, when you are not able to work, you won't get paid by the company. We advise you to take an insurance in case of a bad emergency.
State you taxes each quarter of the year.
When you forget declaring you taxes each quarter of the year, you will get a fine of approximate €65.
Store your bookkeeping.
The Dutch government can do an accounting research till 5 years after your freelance assignment.
Create a business bank account
This bank account will create a BTW number which you have to use for bookkeeping.
Use bookkeeping tools.
Easy to use tools are E-boekhouden.nl or Exact.nl where you can keep track of all your expenses and revenue.