Starting a business in
🇳🇱Netherlands
Checked November 4, 2026 · How we score
Corporate tax
25.8%
Top income tax
49.5%
Setup from
$2,000
all-in, first year
Time to form
10 days
can be done remotely
Taxes in Netherlands
| Corporate income tax | 25.8% 19% on the first EUR 200,000 of taxable profit and 25.8% above that. Innovation Box 9% on qualifying IP income. Participation exemption on qualifying dividends and gains. |
|---|---|
| Personal income tax (top) | 49.5% Box 1 (work and home): 35.82% to about EUR 38,883 and 49.5% above about EUR 78,426 (2026). Directors-major-shareholders (DGA) must pay themselves a customary salary. Box 2 substantial interest: 24.5% to EUR 68,843, 31% above (2026). |
| Tax system | Worldwide income |
| Capital gains tax | 31%Box 2 taxes dividends and gains from substantial interests (5%+) at 24.5%/31% in 2026; Box 3 taxes a deemed return on assets (36% on deemed return). |
| Dividend withholding (non-residents) | 15% |
| VAT / GST | 21% |
| Social security | Employee social premiums are integrated into Box 1 (about 27.65% included in the first bracket). Employers pay roughly 20%+ in social charges. Conditional WHT of 25.8% applies to payments to low-tax jurisdictions. |
Forming a company in Netherlands
| Usual entity | BV (private limited company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,000–$4,500 |
| Annual running cost | $4,000–$9,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
No digital nomad visa; the Golden Visa was abolished in 2017. US citizens can use the DAFT treaty for self-employment; others use the self-employed or startup visa. 30% ruling gives tax-free allowance of 30% for qualifying hires (reducing to 27% from 2027).
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Innovation Box
9% effective rate on profits from qualifying R&D and IP.
30% ruling
Employees recruited from abroad receive 30% of wages tax-free for up to five years (reducing to 27% from 2027).
Participation exemption
Dividends and gains from qualifying shareholdings (5%+) are exempt from CIT.
Dutch-American Friendship Treaty (DAFT)
Allows US citizens to set up as self-employed in the Netherlands with a EUR 4,500 investment.
Pros and cons
Why founders pick Netherlands
- 19%/25.8% CIT with 9% Innovation Box
- Participation exemption and large treaty network
- Strong banking and infrastructure
- English-speaking with sophisticated advisers
Watch out for
- Personal tax up to 49.5% and Box 2 dividend tax of 31%
- High annual costs and mandatory customary salary for DGAs
- Often listed as a corporate tax conduit/haven by NGOs
- Strict substance and anti-abuse rules
- Residence permits are hard for non-EU founders
Best for: Holding companies and IP structures · Tech and e-commerce firms with EU customers · US citizens using DAFT
Netherlands: common questions
What is the corporate tax in the Netherlands?
19% on the first EUR 200,000 of profit and 25.8% above it. Qualifying income can use the 9% Innovation Box, and qualifying dividends and gains are exempt under the participation exemption.
Can a foreigner open a BV in the Netherlands?
Yes. A Dutch civil-law notary must execute the deed, and non-residents can sign by power of attorney. There is no minimum capital; costs are roughly EUR 1,500–4,000 including notary fees, KvK registration and an address.
Is the Netherlands a tax haven?
It is not a classic haven (high taxes, full OECD member), but it is widely listed as a corporate tax conduit because of its treaty network, participation exemption and historic holding structures. Dutch law now restricts conduit payments to low-tax jurisdictions.
What is the 30% ruling in the Netherlands?
A tax benefit for skilled employees recruited from abroad: 30% of salary is paid tax-free for up to five years. The benefit will fall to 27% from 2027.
What is DAFT?
The Dutch-American Friendship Treaty lets US citizens live and run a business in the Netherlands for two years, renewable, by investing EUR 4,500 and registering with KvK.
Sources
- Belastingdienst (Dutch Tax and Customs Administration)
- Netherlands Chamber of Commerce (KvK)
- PwC Worldwide Tax Summaries – Netherlands
Compare Netherlands
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.