QUOTE (Memo @ Jun 2 2008, 4:07 pm)

Another detail might be useful here. He is 36 and he is a project manager in an NGO. There is a chance that he will continue his job via remote access and receive part of his salary on top of the stipend for the duration of his stay. In other words, we are not talking about a classical student situation here.
Also, being single, he is coming to Amsterdam alone and does not have to take care of anyone else.
If your friend chooses to receive his income in the NL , he may qualify for the 25% foreigners tax break. This means that your pay tax only on 75% of your income and lasts up to 10 years (but you only ever get it once). The downside is that you can't write off much against taxes in the NL. There may be advantages to keeping his income outside the NL particularly if he wants to qualify for full-time student status.
It comes down to how you want to live. Live in a good apartment in a decent part of town and say good bye to up to 2000 Eur/month, on the other hand if you can compromise then you can get by with a lot less. Like MUC, a semi-decent furnished studio can be had for about 7-800 Eur. The advantage of flat sharing is that things like the internet connection are a done deal. Otherwise expect to pay about the same as in Germany.
Bicycles are cheap. The current standard reconditioned model can be had for about 80Eur. I forget the price of a month ticket there but as a student, he may still qualify for a discounted. Beer isn't so cheap and is a tad pricier than Germany but less than the UK.
A good place to look for addresses and so on is expatica.com's NL section but it is more relevant to someone with a classic job/income situation.