Company Formation & Tax in the Netherlands
A stable, English-friendly gateway to the EU — the BV, the two-tier corporate tax, VAT, and the holding regimes that make the Netherlands a structuring favourite.
The Netherlands is one of Europe's most open economies and a long-standing base for international holding and trading structures. Incorporation is fast and can be handled in English, and the country's participation exemption and Innovation Box are among the reasons so many groups route activity through a Dutch entity.
Choosing an entity
The standard vehicle is the BV (besloten vennootschap, private limited company). Since the "Flex-BV" reform, there is effectively no minimum capital — a BV can be formed with EUR 0.01. Larger and listed businesses use the NV (public limited company). Incorporation is via a civil-law notary and registration with the Chamber of Commerce (KvK), which passes details to the tax administration (Belastingdienst). Foreign founders can own a BV fully, and the process is typically completed within a few days, remotely.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax — profits up to €200,000 | 19% |
| Corporate income tax — profits above €200,000 | 25.8% |
| VAT (standard) | 21% |
| VAT (reduced) | 9% |
Dutch corporate income tax (vennootschapsbelasting) is two-tier: 19% on taxable profit up to €200,000 and 25.8% above, unchanged for 2026. VAT (BTW) is 21% standard with a 9% reduced rate; companies file VAT returns (usually quarterly) through the Belastingdienst.
The regimes that matter
Two features make the Netherlands attractive for structuring. The participation exemption can fully exempt dividends and capital gains from qualifying shareholdings (broadly a 5%+ stake meeting conditions) — the foundation of the Dutch holding company. The Innovation Box reduces the effective rate to around 9% on qualifying income from self-developed intangibles. The Netherlands also runs the well-known 30% ruling for qualifying inbound employees, a fiscal-unity regime for groups, and one of the world's widest treaty networks. Note a conditional withholding tax applies to certain interest, royalty and dividend payments to low-tax jurisdictions.
Frequently asked questions
What is the corporate tax rate in the Netherlands?
19% on taxable profit up to €200,000 and 25.8% above that.
How much capital do I need for a BV?
Effectively none — since the Flex-BV reform a BV can be formed with EUR 0.01 of share capital.
What is the Dutch VAT rate?
21% standard, with a 9% reduced rate.
Why use a Dutch holding company?
The participation exemption can fully exempt qualifying dividends and capital gains, making the Netherlands efficient for holding structures when conditions are met.
Official sources
- Business.gov.nl — Starting a Business
- Belastingdienst (Dutch Tax Administration)
- KvK — Netherlands Chamber of Commerce
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; reliefs carry conditions and rules change. Confirm against the official sources above, or with an advisor, before acting.
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