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Frequently Asked Questions

Tax Services

Business tax services focus on corporate tax compliance, deductions, and structuring, while individual tax services assist with personal income tax, expatriate filing requirements, and optimization for personal circumstances

Tax planning strategies help minimize tax liabilities, optimize cash flow, and ensure compliance with Dutch tax laws, ultimately maximizing after-tax income for the business.

Required documents generally include income statements, residency certificates, prior tax returns, and any relevant immigration or employment papers. We provide a checklist for streamlined preparation.

Yes, we specialize in international tax issues, ensuring clients are compliant with both Dutch and foreign tax laws, and benefit from applicable treaties and regulations.

Eligibility for deductions depends on factors like business expenses, sector-specific rules, and your company's structure. We assess each client’s situation to maximize eligible deductions.

Freelancers need to register with the Chamber of Commerce (KvK) and the Tax and Customs Administration (Belastingdienst) to receive a VAT number. We guide clients through income and VAT filings.

The Netherlands offers competitive corporate tax rates, particularly beneficial for holding companies and innovation-based businesses, which often qualify for additional reductions.

Specialized services include handling complex tax scenarios such as mergers, acquisitions, and restructuring. We also offer advice on transfer pricing and tax implications of international expansions.

Dutch tax treaties help avoid double taxation for non-EU residents, ensuring they don’t pay tax on the same income in multiple jurisdictions. We advise on applicable treaties to minimize tax burdens.

Yes, our tax consultants are experienced in providing remote assistance to international clients, covering everything from tax strategy to compliance and cross-border advisory.

Accounting

Compliance requirements include registering with the Chamber of Commerce (KvK), obtaining VAT and tax identification numbers, setting up proper accounting records, and adhering to Dutch tax laws and regulations.

Ensure compliance by staying updated with Dutch laws, maintaining accurate records, filing all declarations on time, engaging professionals for accounting and tax matters, and ensuring employment contracts comply with labor laws.

Financial statements must be prepared annually and submitted to the KvK. Depending on the size of the company, interim reports may also be required.

Recommended software includes Exact Online, Twinfield, or QuickBooks, tailored to the specific needs of the business.

Steps include reconciling accounts, preparing financial statements, reviewing for accuracy, and submitting required reports to tax authorities and stakeholders.

Penalties may include fines, legal action, and reputational damage. Compliance is crucial to avoid these consequences.

VAT obligations include registering for VAT, filing periodic returns (monthly or quarterly), and applying the correct VAT rates and exemptions.

We need sales and purchase invoices, bank statements for reconciliation, and any documents affecting VAT calculations, such as credit notes.

Required information includes financial statements, detailed ledger accounts, tax-related documents (depreciation schedules, deductible expenses), and shareholder/director details.

Tax-deductible costs include operational expenses, depreciation, professional services fees, business travel costs, and employee training expenses.

Yes, we assist with VAT registration, managing cross-border VAT obligations, and filing through the One Stop Shop (OSS) scheme for EU transactions.

Yes, we handle payroll services, including timely salary payments, tax withholdings, and compliance with Dutch labor laws.

Rules include taxation for private use (bijtelling), maintaining mileage logs, partial VAT deductions for private use, and compliance with emissions standards.

Yes, we provide customized training sessions to equip your staff with the necessary skills to manage accounting processes effectively.

Steps include passing a shareholders’ resolution, filing changes with the KvK, notifying tax authorities, and amending employment contracts if applicable.

Yes, we offer bookkeeping, VAT filings, corporate income tax returns, and annual financial statement preparation services.

Yes, we assist with dissolution, settling liabilities, completing final tax filings, and deregistering the company with the KvK.

Steps include choosing a business name, registering with the KvK, obtaining a tax number, and opening a Dutch business bank account.

Obligations include filing annual financial statements, corporate income tax returns, regular VAT filings, and payroll administration if employees are present.

Invoices must have unique sequential numbers, issue dates, supplier/customer information, descriptions of goods/services, and VAT details.

Businesses must retain records for at least seven years, including invoices, contracts, financial statements, and tax filings.

A B.V. must undergo an audit if it meets at least two of the following criteria for two consecutive years: total assets exceed €6 million, turnover exceeds €12 million, or more than 50 employees.

Outsourcing provides expertise, ensures compliance, saves time, and allows you to focus on core business activities.

Register the bank account with the tax authorities, complete the "Opgaaf rekeningnummer" form, and submit it to the Belastingdienst for verification.

Compliance involves implementing proper accounting systems, staying updated with regulations, and adhering to Dutch GAAP.

Payroll services

We do, please see our dedicated page at http://payrolus.com

Our services cover payroll tax calculations, payslip production, benefits administration, and full compliance with Dutch payroll laws.

Certainly, see: https://www.taxgate.nl/services/employer-of-record-eor/

EOR services manage employment obligations on behalf of a company, including payroll, taxes, and compliance, while the client retains day-to-day control of work activities.

Co-employment involves sharing employer responsibilities between a company and a third-party provider, allowing businesses to streamline HR tasks and reduce liability.

To employ a person that resides in the Netherlands and to pay its taxes and social security premiums normally you have the option to use your own company but also to use our company as a so-called employer of record. These options also apply if your company is from abroad and has no binding with the Netherlands. For more on these please see our pages on PEO, EOR and tailored solutions.

If you and/or your partner have at least 5% direct or indirect share interest in a company (e.g., a B.V.) and work for that company, then the Dutch minimum salary rules (under Article 12a of the Dutch Wage Tax Act) apply. This stipulates that your salary in 2024 should be at least the salary of the most comparable job outside your company, the highest-earning employee within your company, or €56,000—whichever is the highest.

For comparison, you can check resources such as Intermediair Salariskompas and Loonwijzer Salary Check.

If the company is unable to pay you the applicable minimum amount (for example, if it has just started or lacks sufficient cash flow despite making money), there are options to deviate from this requirement.

Outsourcing payroll reduces administrative workload, ensures compliance, minimizes error risk, and provides access to payroll expertise without adding to in-house HR burdens.

Payroll taxes are calculated based on gross wages, considering tax bands, social security contributions, and applicable deductions, which vary by employee category.

How does payroll / wage tax work?

In the Netherlands, payroll or wage tax (loonheffing) is a tax withheld by employers from employees' salaries. This system ensures that income taxes and social security contributions are paid directly to the Dutch tax authorities (Belastingdienst) on behalf of the employee, minimizing the need for additional income tax payments at the end of the year.

Key Components of Payroll Tax:

  • Income Tax: A progressive tax rate is applied, meaning higher earnings are taxed at higher rates. The employer withholds this tax amount from each paycheck, based on the employee's tax bracket.
  • Social Security Contributions: These contributions cover national insurance schemes, such as old-age pensions (AOW), disability insurance (WIA), and child benefits (AKW). Employers deduct these contributions from salaries and transfer them to the tax authorities.
  • Employee Insurance Contributions: Employers also contribute to employee insurance schemes, which fund unemployment benefits (WW), sickness benefits (ZW), and disability insurance (WIA). Though these are paid by the employer, they are part of the payroll tax system.

Calculating Payroll Tax:

The payroll tax amount depends on various factors, such as the employee’s salary, tax credits, and applicable deductions. Employers use payroll software or tax tables provided by the Belastingdienst to calculate the correct amount to withhold each pay period.

Annual Income Tax Return:

At the end of the year, employees may need to file an income tax return to ensure their overall tax payments align with their annual income. Any underpaid or overpaid amounts are adjusted after this filing.

At TaxGate, we specialize in handling payroll and wage tax compliance, ensuring accurate calculations and timely submissions. Contact us to learn more about our payroll services and how we can simplify your company’s tax obligations.

The tax rate applied to additional salaries like holiday allowance and bonus (i.e., the so-called marginal tax rate) is higher than the rate applied to the regular salary. This is so because of the following reasons:

Holiday pay is mandatory, typically 8% of an employee's annual income, while bonuses vary by contract but must be reported and taxed appropriately.

Holiday allowance should be paid out at least once a year, so, yes, monthly is possible and should be agreed in writing, although normally it is paid out once, in May (or June).

Yes if agreed so in writing (art. 16 par 5 WML) and under certain circumstances even if not explicitly agreed. Without agreement on holiday allowance normally the employee is entitled to holiday allowance regarding the wage amounting to 3 times the minimum wage but not for any exceeding wage (art. 15, par. 1 WML).

Buildup is over wage, defined for this purpose as all monetary income from employment, except over what is outlined in art. 6 WML. That includes gross wages, including overtime, commissions, pay for unregular hours, payout of holiday days but not over bonuses, transition fees (transitievergoeding ex 673 DCC) and the holiday allowance itself.

Payslips must include gross and net pay, tax deductions, and employer contributions. We handle payslip production to ensure compliance with Dutch standards.

Payroll is typically processed monthly, but we can customize frequency based on your needs, such as weekly or biweekly, while maintaining compliance.

Yes, we specialize in payroll services for expats, ensuring accurate tax withholding and compliance with Dutch expat regulations, including the 30% ruling where applicable.

Yes, we manage payroll for both local and international employees, including compliance with Dutch and relevant foreign payroll regulations.

If the employee enters into a lease agreement him-/herself, the Dutch tax authorities normally will not consider the car as a company car but as a private car, which would have the following implications:

  • Tax-Free Kilometer Reimbursement: The employer can reimburse EUR 0.23 per kilometer tax-free for business kilometers (including commuter travel), and this can be processed through payroll.
  • Lease Expense Reimbursement: The employer can reimburse the full lease expense (including VAT), but this would be treated as net salary and needs to be grossed up. If the employee qualifies for the 30% ruling, this additional salary can also be covered under this ruling.
  • Deductibility of Travel Allowance: The tax-free travel allowance is fully deductible for the employer (and on-charged if we act as the employer of record). All other car-related expenses, such as fuel, insurance, tax, and maintenance, are private expenses of the employee and are considered covered by the EUR 0.23 tax-free allowance. If the employer covers these additional expenses, they would also be treated as net salary requiring gross-up or can be covered under the free budget of the work-related costs scheme.

For completeness, there is a view that if the employee leases the car privately but is fully reimbursed tax-free by the employer, the car may effectively be considered a company car due to the employer bearing the lease costs indirectly. This would be a de facto approach rather than a de iure (legal) approach.

In the Netherlands, health insurance is mandatory for everyone living or working in the country. This ensures access to a high standard of healthcare. To get insured, you’ll need to choose a Dutch health insurance provider and sign up for a basic health insurance policy, known as the basisverzekering. This covers essential medical care, such as visits to the general practitioner, hospital treatment, and emergency care.

If you're an expat or a new resident, you’ll need to arrange health insurance within four months of registering with your local municipality. For those employed, employer health contributions may apply, but you are still required to have your own basic insurance. Many people also opt for additional insurance to cover services not included in the basic package, such as dental care, physiotherapy, and alternative treatments.

To select a health insurance plan, compare providers and their premiums based on your needs. You can adjust your plan annually, with new policies taking effect on January 1 each year. For more personalized advice, TaxGate can assist you in understanding your healthcare insurance options in the Netherlands.

How does it work with pensions?

In the Netherlands, pensions are typically arranged through three main pillars: the state pension (AOW), workplace pensions, and personal savings or private pensions.

1. State Pension (AOW):

This is a government-provided pension for residents, available from the statutory retirement age, which may vary based on life expectancy and other factors. The AOW provides a basic income to residents, with eligibility depending on years of residence in the Netherlands.

2. Workplace Pension:

Many employers offer a collective pension plan, where both the employer and employee contribute a portion of the employee’s salary. The specifics of the plan vary by company and sector, with some sectors requiring mandatory participation in a pension scheme.

3. Private Pension:

Individuals can also choose to save additionally for retirement. This might include setting up an individual pension plan with a financial institution to supplement other pensions.

At TaxGate, we provide comprehensive guidance on navigating the Dutch pension landscape, including advice on contributions, tax implications, and understanding your pension rights, especially if you’re an expat or planning to work in the Netherlands for a limited period. Contact us to discuss how we can help optimize your pension arrangements for your financial future.

What insurances are needed in the Netherlands?

In the Netherlands, certain insurances are mandatory, while others are optional but advisable. Here's an overview:

Mandatory Insurances:

  • Health Insurance (Basisverzekering): Everyone residing or working in the Netherlands is legally required to have basic health insurance. This covers essential medical care, including visits to general practitioners, hospital treatments, and prescription medications. You must obtain this insurance within four months of registering with your municipality.
  • Motor Vehicle Liability Insurance (WA-verzekering): If you own a motor vehicle, you must have at least third-party liability insurance. This covers damages or injuries you may cause to others while operating your vehicle.

Optional but Recommended Insurances:

  • Home Contents Insurance (Inboedelverzekering): This insurance covers damage or loss of personal belongings within your home due to events like fire, theft, or water damage.
  • Liability Insurance (Aansprakelijkheidsverzekering): This provides coverage if you accidentally cause damage to someone else's property or injure another person.
  • Legal Assistance Insurance (Rechtsbijstandverzekering): This offers legal support and covers legal costs in case of disputes or legal proceedings.
  • Travel Insurance (Reisverzekering): If you travel frequently, this insurance can cover unforeseen events such as medical emergencies abroad, trip cancellations, or lost luggage.

It's important to assess your personal situation to determine which optional insurances are beneficial for you. At TaxGate, we can provide tailored advice to ensure you're adequately protected while living in the Netherlands.

Providing a company car to an employee has various implications, from flexibility and tax considerations to record-keeping requirements. Here’s an overview of the key aspects:

  • Flexibility for Company Use: Offering a company car allows for more flexibility, especially in cases where multiple employees need to use the car simultaneously or successively for business purposes. This arrangement can reduce the need for each employee to own or lease their own vehicle.
  • VAT Reclaim: The leasing company (lessor) may reclaim the Dutch VAT on the lease costs of the car, which can offer a financial benefit to the company. This requires proper VAT documentation and adherence to VAT rules on company vehicles.
  • Fiscal Addition for Private Use (Bijtelling): If the employee uses the company car for private purposes and drives more than 500 kilometers privately in a year, a fiscal addition, or deemed income, will apply. This amount is added as taxable income and is usually calculated at 16% or 22% of the car’s catalogue value, depending on the car’s CO2 emissions. The employer typically handles this through payroll.
  • Kilometer Administration: If the employee claims to drive the company car less than 500 kilometers privately each year, a kilometer administration log must be maintained as evidence. This documentation is necessary to avoid the fiscal addition for private use and should be regularly updated and accessible if required.
  • Reimbursement of Car-Related Expenses: If the employee incurs car-related expenses (such as fuel) out of pocket, these costs can be reimbursed tax-free through payroll. This allows the employee to cover necessary expenses without additional tax burdens.

Understanding these implications is essential to make the most of a company car arrangement while remaining compliant with tax regulations. For more tailored advice on structuring car leases and reimbursements, TaxGate can assist you in optimizing your company’s car policies.

The 214-day approach is a simplified method for calculating travel allowances for employees who do not work the same number of days at the office each week due to factors like holidays, remote work, or occasional sick leave. This approach provides a consistent travel allowance without requiring daily tracking of office visits and is often fiscally beneficial.

How the 214-Day Approach Works:

Under this method, it is assumed that employees will work at the office for at least 214 days in a year, even if actual office attendance may vary. Instead of tracking exact travel days, the employer can apply the travel allowance based on this 214-day assumption.

  • Time and Effort Savings: By using the 214-day approach, there’s no need to keep daily records of travel, which saves significant time and administrative effort for both the employer and employee.
  • Fiscally Beneficial: Since this method provides a steady allowance without requiring adjustments based on actual attendance, employees often receive a more generous travel allowance compared to tracking actual travel days.

This practical approach aligns with Dutch tax guidelines, making it a favorable option for employers looking to simplify travel allowances. For more information on applying the 214-day approach and other travel allowance options, contact TaxGate for expert advice.

How can the tax-free travel allowance be determined?

To determine the distance for tax-free travel allowance, you should use the most common route, typically the shortest or most logical path, which may be verified by a mapping tool like Google Maps. While the shortest route is often preferred, a slightly longer route may be used if it’s faster or more practical for regular travel.

Key Points for Determining Travel Allowance:

  • Allowance Rate: In 2024, the fixed tax-free allowance is set at a maximum of 23 cents per kilometer. This rate applies regardless of the mode of transport, so whether traveling by car, bike, or even walking, the 23 cents per kilometer can be claimed tax-free for business-related trips.
  • Route Based on Transport Mode: Choose the most common route based on your mode of transport. For example, if traveling by car, take the typical driving route; if walking, select the common walking path. Detours for personal preference do not qualify as business-related kilometers and should not be included in the allowance calculation.
  • Business-Related Travel: Only business kilometers qualify for the tax-free allowance. Commuting to and from the workplace, as well as trips to client meetings, courses, or other work-related locations, count as business travel and are eligible for the allowance.

For additional details, refer to the Dutch government’s guidance (in Dutch): Dutch Tax-Free Kilometer Allowance Information .

Can I get tax back for paying mortgage interest for my house?

Yes, in the Netherlands, you may be eligible for tax deductions on mortgage interest payments if certain conditions are met. These deductions can reduce your taxable income, providing a tax benefit for homeowners with qualifying mortgage loans.

Conditions for Mortgage Interest Deduction:

  • Primary Residence Requirement: The property must be your primary residence. Only mortgage interest for your main home qualifies for tax deductions.
  • Maximum 30-Year Repayment Period: The mortgage or loan must adhere to a maximum 30-year repayment plan. This requirement ensures that the loan is structured to be fully repaid within this period.
  • Loan Type: The tax deduction applies to interest on loans used to purchase, improve, or maintain the primary residence, whether or not the loan is secured by a formal mortgage.
  • Deductible Financing Costs: In addition to interest payments, certain costs incurred to secure the financing—such as notary fees, mortgage advice fees, and appraisal costs—are also deductible.

If you meet these criteria, you may claim mortgage interest and financing costs as deductions on your annual income tax return, lowering your taxable income. For tailored advice on mortgage interest deductions and eligibility, contact TaxGate to ensure you maximize your tax benefits as a homeowner.

My employee is not functioning well, how can I terminate the labor contract?

As an employer, you have several options for terminating a labor contract due to underperformance. The approach you take depends on whether the employee agrees with the termination or disputes it. Here is an overview of the available options:

A. Termination for Insufficient Functioning

If you wish to terminate the contract due to underperformance, there are two potential scenarios:

  • 1. Mutual Agreement: If the employee agrees to the termination and the terms offered, including severance payment, you can proceed with an agreement. Severance pay is often negotiated and typically set at the transition allowance rate, which is roughly 1/36th of the annual salary for each year of service. The final amount may vary based on the employee’s tenure and the strength of their case. This is the most common method of contract termination in the Netherlands.
  • 2. Employee Disputes Termination: If the employee does not agree to the termination or the terms, you may need to seek termination through the Court. This can be pursued for reasons such as underperformance, culpable actions, a disturbed employment relationship, frequent illness-related absenteeism, or other valid grounds. In such cases, the applicable notice period is important.

B. Instant Dismissal

For immediate dismissal, an urgent reason must be present, such as refusal to work, fraud, or mistreatment. No notice period is required for instant dismissal; however, the employee has the right to dispute it in Court.

If the employee agrees to a mutual termination, TaxGate can assist with drafting the termination agreement, which may allow the employee to qualify for unemployment benefits (WW-uitkering). However, if the employee is likely to dispute the termination and legal proceedings are expected, we recommend seeking assistance from one of the labor attorneys we collaborate with for specialized support.

How do I get a BSN?

The BSN (Burgerservicenummer) is a unique citizen service number assigned to residents of the Netherlands. It is used for various purposes, such as healthcare, taxation, and social security. Here’s how you can obtain a BSN:

  • Register with the Municipality (Gemeente): To get a BSN, you need to register with the municipality (gemeente) where you will be residing. This registration process is required for everyone planning to stay in the Netherlands for more than four months.
  • Bring Necessary Documents: When registering, you must bring a valid passport or ID, proof of your Dutch address (such as a rental agreement), and, if applicable, a birth certificate or marriage certificate. Be sure to check with your local municipality for any additional requirements.
  • Receive Your BSN: After successfully registering, you will receive your BSN, often on the same day. This number is essential for accessing services in the Netherlands, including healthcare, opening a bank account, and securing employment.

If you are an international employee, your employer or relocation advisor may assist you with the BSN registration process. At TaxGate, we can guide you through the necessary steps for a smooth transition to living and working in the Netherlands.

30% ruling

The 30% tax ruling is a tax incentive in the Netherlands designed for foreign employees with specific expertise. It allows employers to provide a tax-free allowance equal to 30% of the employee's gross salary. This allowance is intended to cover extra-territorial expenses associated with relocating and working in a foreign country. By reducing the employee's taxable income, the 30% ruling increases their net salary while also slightly reducing the employer’s overall tax burden. It is a key tool for attracting international talent to the Dutch labor market.

The primary objective of the 30% ruling is to attract skilled professionals from abroad to the Netherlands. Relocating to a foreign country often comes with additional costs, such as higher living expenses, travel expenses, and other logistical challenges. The tax-free allowance helps offset these costs, making the Netherlands a competitive destination for international talent. This incentive benefits both the Dutch economy and employees by reducing financial barriers to international relocation.

In addition to the tax-free allowance, the 30% ruling offers several advantages:

  • Exemption for Savings and Investments: Employees benefiting from the 30% ruling are exempt from declaring their worldwide savings and investments in their Dutch personal income tax returns, reducing their administrative burden and potential tax liability.
  • Driving License Exchange: The ruling enables employees and their partners to exchange their foreign driving license for a Dutch one without needing to pass Dutch driving tests, simplifying the process of obtaining a local license.

To qualify for the 30% ruling, foreign employees must meet specific criteria:

  • Salary Threshold: For 2024, the taxable salary portion must be at least €46,107 annually. For employees under 30 years old with a recognized Master’s degree (according to Dutch standards), the threshold is lower, at €35,048 annually.
  • Distance Requirement: The employee must have lived more than 150 kilometers from the Dutch border (within Europe) for at least 16 of the 24 months preceding their Dutch employment. This condition ensures the ruling benefits individuals who incur significant relocation expenses. Meeting these criteria is essential to demonstrate the need for the tax incentive and eligibility for the allowance.

Under the 30% ruling, 30% of an employee’s gross salary is paid as a tax-free allowance, while the remaining 70% is subject to Dutch income tax rates. This reduces the amount of salary that is taxed, resulting in a higher net salary for the employee. Employers benefit as well, since their payroll tax obligations are calculated on the reduced taxable amount. This creates a mutually advantageous arrangement for both the employee and the employer.

The 30% ruling is typically granted for a maximum period of five years. However, if the employee has previously lived or worked in the Netherlands, the ruling's duration may be reduced by the length of that prior stay. It is important for applicants to disclose any prior periods of residence or employment in the Netherlands when applying.

Yes, the 30% ruling can be applied retroactively for up to four months from the start of employment. This allows employees and employers to claim the tax benefit from the beginning of the employment period, even if the application process is completed after the employee starts working.

No, the 30% ruling cannot be renewed. Once the maximum period of five years has elapsed, the benefits of the ruling cease, and the employee becomes subject to standard Dutch tax rules for their entire gross salary.

If you change employers, you can continue benefiting from the 30% ruling, provided your new employment starts within three months of the termination of your previous employment. A new application must be submitted with your new employer, and all eligibility criteria, including the salary threshold, must still be met.

Applying for the 30% ruling involves several steps:

    • Preliminary Assessment: Confirm that you meet the salary and distance requirements.
    • Complete Required Forms: This includes a questionnaire to be filled out by the employee, along with a Power of Attorney signed by both the employer and employee. Supporting documents, such as proof of prior residence, employment contract, and educational qualifications, may also be required.
    • Submit the Application: The employer or tax advisor submits the application to the Dutch tax authorities.
    • Approval and Notification: If approved, a copy of the ruling is provided to both the employer and the employee.

You will typically need:

    • A completed employee questionnaire.
    • A Power of Attorney signed by the employee and employer.
    • Proof of previous residence (to meet the distance requirement).
    • A copy of your employment contract.
    • Proof of educational qualifications, if applicable.

No, the 30% ruling is only available to employees. Self-employed individuals and freelancers are not eligible, as the benefit requires an employment relationship with an employer. That employer, however, could be your own company, see next question.

Yes, you can use the 30% ruling if you are employed by your own Dutch B.V. or a foreign company registered in the Netherlands. Many professionals, such as IT consultants, doctors, and entrepreneurs, benefit from this arrangement. You must ensure that all eligibility criteria, such as the salary threshold, are met.

Advantages

  • Higher Earnings: By invoicing clients directly, you can often achieve higher income compared to traditional employment arrangements. Additionally, if all net earnings are allocated as salaries, you may avoid corporate income tax altogether.
  • Lower Social Security Contributions: Your company is generally exempt from paying social security premiums for illness, disability, or unemployment. However, this also means you will not be covered by these social security benefits, so it’s important to arrange alternative coverage if needed.
  • Flexibility: Operating through your own company provides significant freedom to manage your schedule and workload, offering greater control over your professional life.
Challenges and Solutions:
  • Administrative Burdens: Managing your own company requires maintaining payroll records, bookkeeping, periodic VAT filings, and preparing annual financial reports and corporate income tax returns.
  • Solution: These challenges can be mitigated by partnering with a professional payroll or accounting service to handle these responsibilities efficiently, allowing you to focus on your core work.
 

  • Establishing a Dutch B.V.: Create a Dutch B.V. and employ yourself.
  • Registering a Foreign Company: Use an existing foreign company and register it for Dutch payroll purposes.
  • Using a Payroll Company: Partner with a payroll provider that acts as your employer of record while allowing you to invoice clients through your company.

  • Previous Eligibility: If this is not your first employment in the Netherlands, you must have been eligible for the 30% ruling with your previous employer to maintain continuity of the benefit.
  • Application Timeline: You must reapply for the 30% ruling within three months of leaving your previous employer to remain eligible.
  • Employment Contract: An employment contract is required with your new employer, whether it is your own Dutch B.V., a foreign company registered for Dutch payroll tax, or a payroll company.
  • International Recruitment: For first-time applicants, you must be recruited from abroad. This process typically involves:
    1. Establishing a Dutch B.V. or registering a foreign company for tax purposes.
    2. Signing an employment contract.
    3. Relocating to the Netherlands to begin your employment.
  • Salary Requirements: Your new employer must meet the minimum taxable salary thresholds set for 2024:
    • €46,107 annually for standard employees.
    • €35,048 annually for employees under 30 years old with a recognized Master’s degree according to Dutch standards.

Social security contributions are based on the gross salary before applying the 30% ruling, so the ruling does not reduce your contributions or entitlements. Similarly, pension contributions are typically calculated on the full gross salary, ensuring that the ruling does not negatively impact your pension benefits.

Yes, the ruling allows you and your partner to exchange your foreign driving license for a Dutch one without taking driving tests. The process involves obtaining a medical statement, booking an appointment at your local town hall, and submitting the required documents, including a copy of the ruling.

Yes, TaxGate provides comprehensive assistance for a total fee of €547. This includes eligibility assessments, completing and submitting the application, and follow-up with the Dutch tax authorities. If your application has been denied, TaxGate can also offer a second opinion to explore your options.

For tailored advice or additional information about your specific situation, feel free to contact TaxGate. Our experienced tax professionals can ensure you maximize the benefits of the 30% ruling while remaining fully compliant with Dutch regulations.

Company Formation

A B.V., or Besloten Vennootschap, is a private limited liability company under Dutch law. It is a separate legal entity, meaning it has its own rights and obligations independent of its owners. This separation offers significant advantages, such as protecting the personal assets of its shareholders from the company’s liabilities. A B.V. is one of the most popular business structures in the Netherlands due to its flexibility and suitability for a wide range of business activities. Whether you are a small entrepreneur or managing a multinational corporation, the B.V. structure can be tailored to meet your needs.

The Dutch B.V. offers a wide range of benefits. First and foremost is limited liability—shareholders are only responsible for the amount of capital they invest in the company, meaning personal assets are protected. Tax efficiency is another significant advantage. The Netherlands has an extensive network of tax treaties, attractive corporate tax rates, and favorable systems like the participation exemption, which exempts qualifying dividends and capital gains from taxation. A B.V. also offers flexibility in management structure, allowing businesses to issue different classes of shares with varying rights. Additionally, the Netherlands' reputation as a stable, business-friendly country strengthens the credibility of companies incorporated there.

The ownership of a Dutch B.V. lies with its shareholders. These shareholders can be individuals, other companies, or a mix of both. They own shares in the company and are entitled to profits and voting rights as determined by their shareholdings. Management, on the other hand, is conducted by the board of directors, who oversee the company’s operations, ensure compliance with laws, and execute its strategy. Shareholders can also serve as directors, meaning it is possible to own and manage a B.V. simultaneously. This dual role is especially common in smaller businesses or startups.

The minimum share capital for a Dutch B.V. is just €0.01 per share. This low threshold makes the B.V. accessible to businesses of all sizes, from sole proprietors to large corporations. While €0.01 is the legal minimum, most businesses choose a higher share capital for practical and professional reasons, such as presenting a more robust financial image to clients and partners.

Yes, Dutch corporate law allows for great flexibility in structuring a B.V. A company can issue shares without voting rights, profit entitlements, or both. This flexibility enables companies to customize their ownership and management structures, which can be particularly useful when raising capital, distributing control, or managing family-owned businesses.

To set up a Dutch B.V., you will need to provide detailed information about the business and its stakeholders. This includes personal details of all shareholders and directors, such as their full names, addresses, and valid identification. You will also need to define the purpose and activities of the company, select a unique company name, and designate a registered address in the Netherlands. Additionally, you must decide on the structure of the share capital, including the number of shares to be issued and their nominal value.

The process of establishing a Dutch B.V. involves several steps. First, you need to draft the company’s articles of association, which outline its purpose, share structure, and governance. These articles must then be notarized by a Dutch civil-law notary. After notarization, the B.V. is registered with the Dutch Chamber of Commerce (KvK). Finally, you must obtain a tax identification number from the Dutch Tax Authority. While the process may sound complex, professional assistance can streamline it, ensuring compliance with Dutch regulations and reducing the risk of errors.

The timeline for incorporating a Dutch B.V. is typically between 1 and 5 business days once all required documents are in order. The speed of the process depends on factors such as the availability of the notary, the accuracy of the provided information, and the complexity of the company’s structure. If additional services, such as VAT registration or bank account opening, are required, this may extend the overall timeline slightly.

No, physical presence in the Netherlands is not mandatory for incorporating a B.V. Many notaries in the Netherlands accept documents that have been legalized or apostilled in your home country, allowing the incorporation process to be completed remotely. However, certain subsequent steps, such as opening a bank account, may require you or a representative to visit the Netherlands, depending on the bank’s policies.

A Dutch B.V. does not legally require its directors or shareholders to be residents of the Netherlands. However, having a Dutch resident director or shareholder may provide practical and tax-related advantages. For instance, it may help the company meet substance requirements, which are important for tax residency and benefiting from the Netherlands’ tax treaties.

Yes, a Dutch B.V. must have a registered address in the Netherlands. This address serves as the official location for receiving correspondence from Dutch authorities and is also required for registration with the Chamber of Commerce. The address can be a physical office or a virtual address provided by a service like TaxGate.

Dutch law does not require a B.V. to appoint a registered agent or company secretary. However, many international business owners choose to use such services to simplify administrative and compliance tasks. A registered agent can help with filings, correspondence with Dutch authorities, and other formalities, ensuring that the company remains compliant with local regulations.

Yes, TaxGate offers registration address services that fulfill the legal requirement for a Dutch registered office. Additionally, we provide mail forwarding services, ensuring that you receive all official correspondence promptly, regardless of your location.

The cost of incorporating a Dutch B.V. varies depending on the services required. On average, the total cost ranges between €1,000 and €3,000. This includes notary fees, registration fees, and optional services such as address registration or VAT registration. The exact price depends on the complexity of the incorporation and any additional services you choose.

To open a bank account for your B.V., you will need to provide proof of company registration, a copy of the articles of association, identification documents for all shareholders and directors, and details about the company’s business activities. Some Dutch banks may require you to attend an in-person appointment to finalize the account opening process.

Yes, TaxGate provides comprehensive support for opening a Dutch bank account. Our team will guide you through the process, help prepare the necessary documentation, and liaise with the bank on your behalf to ensure a smooth experience.

This decision depends on your business objectives. Establishing a B.V. as an individual is simpler and more direct, while setting up a subsidiary under your foreign company can offer benefits like easier international operations, better asset protection, and potential tax advantages.

Yes, you can establish a branch office as an alternative to incorporating a B.V. A branch is an extension of your foreign company and is not a separate legal entity. While it is simpler to set up, a branch does not offer the limited liability or tax benefits that a B.V. provides.

A Dutch B.V. is a separate legal entity, meaning it is independent of its owners and has its own rights and obligations. This structure limits liability to the company itself. A branch, by contrast, is an extension of a foreign company and does not provide limited liability. A B.V. is often preferred for businesses seeking operational independence and tax advantages in the Netherlands, while a branch is suitable for simpler setups.

A holding company is not mandatory but can offer several advantages. For instance, it can help with tax optimization by taking advantage of the Netherlands’ participation exemption, which exempts dividends and capital gains from qualifying subsidiaries from corporate tax. A holding company can also centralize the management of multiple subsidiaries, streamline financial reporting, and provide a layer of asset protection. Businesses with international operations often use a Dutch holding company as part of a broader corporate structure.

Yes, a Dutch B.V. can sponsor residence and work permits for its owners and employees, subject to specific conditions set by Dutch immigration authorities. For entrepreneurs, the self-employed visa program is a common pathway, requiring a viable business plan and compliance with certain criteria. For employees, the highly skilled migrant program or other work permits can be applied for through the B.V.

The 30% ruling is a tax incentive designed for highly skilled expatriates moving to the Netherlands for work. Under this ruling, up to 30% of an employee's gross salary can be paid tax-free, compensating for the additional costs of living abroad. Employees of a Dutch B.V. who meet the criteria set by the Dutch Tax Authority may qualify for this benefit, making it an attractive option for recruiting international talent.

The Dutch tax system is one of the most favorable for businesses, offering several benefits to Dutch B.V.s. Key advantages include the participation exemption, which exempts qualifying dividends and capital gains from taxation, and the innovation box regime, which applies a reduced tax rate to income derived from qualifying innovative activities. Additionally, the Netherlands has an extensive network of tax treaties that help prevent double taxation and reduce withholding taxes on cross-border payments.

Shareholders’ meetings are not required to be held in the Netherlands unless stipulated in the company’s articles of association. This flexibility is particularly beneficial for international shareholders, allowing meetings to be conducted abroad or virtually as needed.

Establishing a branch involves registering your foreign company’s Dutch operations with the Chamber of Commerce. The process requires proof of the foreign company’s legal existence, such as a certificate of incorporation, and the appointment of a local representative authorized to act on behalf of the branch. Unlike a B.V., a branch is not a separate legal entity and shares liabilities with its parent company.

A Dutch B.V. is highly versatile and is used for various purposes, including conducting business operations in the Netherlands or across Europe, holding shares in other companies to benefit from tax treaties and the participation exemption, managing intellectual property rights, and acting as a financing or treasury center for multinational operations.

Yes, TaxGate provides assistance with securing Dutch residence and work permits for employees and their families. This includes guidance on the application process, ensuring compliance with Dutch immigration laws, and handling the necessary documentation.

TaxGate provides a comprehensive suite of services designed to support Dutch B.V.s. These services include offering a registration address with mail forwarding, as well as accounting and bookkeeping solutions to ensure financial compliance. Tax compliance services cover VAT filings and corporate income tax preparation, while payroll services manage employee salaries and tax withholdings. Additionally, TaxGate assists with bank account setup and provides business consulting to help optimize your company’s structure and operations.

TaxGate is a trusted partner with extensive experience in setting up and managing Dutch companies. Our team of professionals provides personalized support at every stage, from incorporation to ongoing compliance. We understand the complexities of Dutch corporate, tax, and immigration laws and offer tailored solutions to ensure your business succeeds. With responsive communication and a focus on your needs, we strive to provide a seamless and stress-free experience.

You can contact TaxGate for assistance by phone at +31 20 244 0480 or via email at info@taxgate.nl. Our office is conveniently located at Keizersgracht 241, 1016 EA Amsterdam. We look forward to helping you establish your Dutch company and achieve your business goals.

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