What the subsidiary gives you

VAT is the value-added tax charged across the Union.

  • An EU establishment that can contract, invoice and employ within the single market.
  • A VAT number, so the company can invoice customers in other EU countries in the normal way.
  • Euro banking, so transactions skip currency conversion.
  • 19% corporate tax on profit up to €200,000 and 25.8% above.
  • The participation exemption: dividends between the BV and a holding with a 5% stake or more stay free of corporate tax.

Ownership by the parent

A New Zealand company can own the shares of a Dutch BV directly. A Dutch notary forms the BV. The notary needs the parent company's corporate documents, proof that it exists and the identity of its ultimate beneficial owners. Remote formation is standard, and the notary then does extra identity checks.

Substance in the Netherlands

If the subsidiary exists only on paper, the tax authorities in both countries may ask questions. The company needs ordinary substance in the Netherlands. This means a real address, a bank account in the company's name, and decisions taken and recorded in the Netherlands. Someone must also be authorised to act for the company. See where your company is taxed for the reasons.

What it costs to run

The recurring costs are bookkeeping, annual accounts, corporate tax returns and the filing with the Chamber of Commerce. The business address is a separate cost under a contract that you sign yourself. The total is modest, and you can budget for it from the first year.

Does your company want its European entity in the Netherlands? See setting up a Dutch subsidiary for the steps, the costs and a comparison with other countries.

Where to set up the company

Most companies choose Amsterdam. If your staff often fly in, the airport region around Hoofddorp and Haarlem often suits you better. It has the same facilities, a shorter trip from the airport and often lower costs. See een BV oprichten in Hoofddorp for that comparison.