Large-scale projects in the Netherlands rely heavily on foreign contractors, specialized subcontractors and staffing companies. Mobilizing an international workforce quickly, however, requires more than technical expertise. Dutch rules concerning employment, immigration, tax, social security and chain liability must be addressed in advance. In this article, Exterus explains why compliance should form an integral part of every tender and mobilization plan.
This is part 1 of our blog series on large-scale projects in the Netherlands. In this series, we discuss the key legal, tax and administrative decisions foreign contractors and staffing companies face before and during a Dutch project.
In this series: Part 1: Organizing compliance in advance · Part 2: Choosing the right business structure · Part 3: Contracting for work or supplying workers (coming soon) · Part 4: Permits and project access (coming soon) · Part 5: Work and residence permits (coming soon)
Working with Foreign Companies on Projects in the Netherlands
Build faster by organizing compliance properly in advance
The largest Dutch projects are not built with concrete and steel alone. They rely on international supply chains involving foreign main contractors, specialized subcontractors and staffing companies that mobilize large numbers of workers within a short period.
This is clearly visible in locations such as the Maasvlakte and Eemshaven, where projects may involve thousands of workers, multiple contractual layers, different nationalities and tight deadlines.
In practice, problems often arise not because companies lack technical expertise, but because Dutch compliance requirements are underestimated or addressed too late. A missing notification, incorrectly structured payroll or insufficient control within the contracting chain can lead to delays, fines, additional tax assessments, chain liability and reputational damage.
The solution is not simply more paperwork. Compliance should form an integral part of the tender, planning and mobilization process. In this first part of the series, we explain why advance preparation is essential and identify the main compliance areas foreign companies need to consider when working on large-scale projects in the Netherlands.
The reality of large-scale projects
Large projects attract international workers and, as a result, regulatory scrutiny. Major port and industrial projects are high-attention environments. Employment, tax, social security and contracting-chain documentation should be in order before the project reaches peak workforce levels.
Energy and industrial construction, including electrical and instrumentation work, mechanical work, commissioning and shutdown projects, requires more than technical precision. It also requires international labour to be organized carefully: who is permitted to work, under which conditions, and who bears responsibility at each level of the contracting chain?
Why the Netherlands is compliance-intensive for foreign construction and industrial chains
The Netherlands is an attractive market with a continuous flow of large projects, but it is also highly regulated. Companies working with international personnel quickly encounter requirements across several interconnected areas:
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Corporate structure. will you operate through a Dutch legal entity, a branch or directly as a foreign company? Are you contracting to deliver a defined scope of work, or are you supplying workers? What does that mean for your registrations, tax position and responsibilities within the chain?
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Permits & project access: Working on a Dutch project involves more than gaining physical access to the site. Depending on the activities, requirements may include Waadi registration, posted workers notifications and project-specific safety measures. In contracting chains, practical safeguards such as a G-account (a blocked bank account used for certain tax payments) may also be relevant. The 'Wet toelating terbeschikkingstelling van arbeidskrachten' (Wtta) enters into force on 1 January 2027 and introduces a new authorization system for staffing agencies and other businesses that supply workers. Enforcement is scheduled to begin on 1 January 2028.
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Immigration: particularly when deploying non-EU nationals, many restrictive rules apply. Valid residence and work permits and timing are critical success factors.
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Employment law & minimum wage: Dutch labour law may (partially) apply, even if contracts are foreign. The Netherlands has a statutory minimum wage and holiday allowance, and in construction and the metal sector, a collective labour agreement (CLA) will in most cases also be relevant.
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Social security: the main rule is that employees are insured in the country of work. However, within the EU there are exceptions, allowing employees to remain insured in their country of residence or the country where their employer is established. Several important points of attention apply here.
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Tax & payroll: depending on the type of services and the chosen corporate structure, corporate income tax, VAT, wage taxes and social security contributions may come into play, as well as periodic administrative obligations, such as maintaining a Dutch payroll administration and meeting filing obligations, also for the employees involved.
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Housing: not unimportant; temporary personnel working in the Netherlands must also be accommodated. Given the tight housing market, finding accommodation can be problematic or may represent a significant cost item.
The importance of compliance throughout the entire chain is key: in the Netherlands, chain liability is a serious matter. If a (sub)contractor fails to pay taxes or wages, liability can be passed up the chain. Under the Foreign Nationals Employment Act (Wet arbeid vreemdelingen), a broad definition of “employer” applies, meaning that virtually all parties in the chain can be fined.
It is therefore essential that both the main contractor or client are aware of all risks, as well as the subcontractor(s) and contractors.
What this blog series covers: from tender to demobilization, without surprises
In this blog series, together with David Wernsing, attorney-at-law at Luscuere Wernsing Advocaten and specialized in immigration law and cross-border employment relationships, we discuss the main considerations for foreign companies, contractors, subcontractors and staffing companies involved in large Dutch projects. The series focuses on sectors such as infrastructure, construction, petrochemicals, energy and industry.
Faster mobilization, less disruption and greater control
Well-organized compliance is necessary and a way to:
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move more quickly through onboarding and site access;
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protect your margins against fines, additional assessments and unexpected costs;
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avoid disputes about responsibilities and costs within the contracting chain;
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maintain a professional position towards the client and main contractor; and
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prevent project delays and reputational damage.
Continue reading our series on large-scale projects in the Netherlands
Explore the other articles in this series:
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Part 1: Organizing compliance in advance (you are here)
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Part 3: Contracting for work or supplying workers? (coming soon)
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Part 4: Permits and project access (coming soon)
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Part 5: Work and residence permits (coming soon)
Next article
In part 2, we examine how foreign contractors and staffing companies can structure their presence in the Netherlands and compare operating through a Dutch BV, a branch or permanent establishment, or directly as a foreign company.
