International

European Subsidiary for a UK Company After Brexit: the Dutch BV, Costs and Steps

Updated: July 2026 Holdwise editorial team

Many UK companies set up a Dutch private limited company (besloten vennootschap, BV) as their European subsidiary after Brexit. Since Brexit, the EU is an export market for UK companies. They now have new costs, such as customs declarations, import VAT and consumer-law issues. Some platforms also prefer sellers established in the EU. Most growing companies solve this with an EU entity, and the Netherlands is the most common place to set one up. You also choose between a subsidiary and a branch, and you plan how to pay profit to the UK free of extra tax.

Short answer With a Dutch BV, a UK company has an entity inside the EU single market again, with EU VAT registration and an EORI number. The BV can also act as importer of record. You can incorporate the BV remotely with 100% UK ownership and share capital from €0.01. Corporate tax is 19% up to €200,000 profit in 2026. Under the participation exemption, profits paid to a UK or Dutch parent with a qualifying stake of 5% or more are tax-free.

At Holdwise, we keep this answer up to date and change it when the rules change.

What changed for your business

If you sell from the UK into the EU, you now deal with customs formalities on every consignment and import VAT at the border. You handle CE marking and consumer-law questions from outside the single market. Platforms that sell to consumers (B2C) increasingly prefer sellers established inside the EU, for returns and compliance. You can manage each point, but every order now costs more time and money. With an EU entity, you sell to EU customers from inside the EU.

Selling from the UK to EU customers? Compare the ways for UK companies to sell in the EU, with a partner or with your own Dutch company.

Why many companies choose the Netherlands

With the port of Rotterdam and Schiphol airport, the Netherlands is a natural distribution point for Europe. There are many fulfilment companies, and business is done in English. In 2026 the Netherlands has 19% corporate tax up to €200,000. You also get an EU VAT number from the start and the article 23 import-VAT deferment. With this deferment, you ship the goods to the warehouse and declare the import VAT in your VAT return. You skip the import VAT payment at customs, so your cash stays in the business.

Subsidiary or branch

A Dutch BV as subsidiary is a separate legal person. It signs EU contracts, has an EU VAT position and has its own bank account. The liability stays within the Dutch company. Platforms and customers see it as an EU company. With a branch, you register your UK company locally. This takes less paperwork. However, the UK company is then directly liable in the EU. Banking is also harder, and many branches are converted into a BV later. For anything beyond testing the market, the BV is the better choice. You can compare the legal forms in Dutch BV vs. UK Ltd.

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.

Paying profit to the UK

Make the UK Ltd the parent company of the Dutch BV. Under the UK-NL tax treaty, Dutch withholding tax on these dividends is 0% in typical corporate structures. In the UK, foreign dividends are broadly exempt on receipt. The group profit is then taxed once in the Netherlands, at 19% in the first bracket. You can complete the setup remotely from London, usually within one week once all documents are complete. The setup includes the deed by Power of Attorney and registration with the Dutch trade register (KVK). It also includes registration in the register of ultimate beneficial owners (UBO), VAT activation and an EORI number. You can read more in Doing Business in the Netherlands. The steps are on the country page for UK founders.

Primary sources: Belastingdienst · Business.gov.nl.

The decision between a Dutch branch and a BV subsidiary is worked out in an EU subsidiary for your UK company; the country guide, including the 30% ruling for founders who relocate, is on from the UK to the EU.

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

Why do UK companies set up a Dutch BV after Brexit? +

To have a company inside the EU single market again. The BV has an EU VAT number and an EU customs position, and EU consumer law applies to it as an EU seller. It can also use the article 23 deferment. With that deferment, the BV declares import VAT in its VAT return, so it keeps its cash available.

Is a Dutch subsidiary better than a branch for a UK company? +

Usually yes, for anything beyond testing the market. The BV has its own liability and its own bank account, and platforms and customers see it as an EU company. With a branch, the UK company is directly liable in the EU, and many branches are converted into a BV later.

How is profit taxed when you pay it to the UK? +

The Dutch BV pays 19% corporate tax up to €200,000 in 2026. Under the treaty, Dutch withholding tax on dividends to a UK corporate parent is typically 0%. The UK parent is typically exempt from further tax on them. The group profit is taxed once.

Can we set this up fully remotely? +

Yes. The deed is signed with an apostilled Power of Attorney. The KVK, UBO, VAT and EORI registrations are arranged in the same process. The typical timeline is within one week once all documents are complete.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: July 2026