Dividends and the two tax rates
In box 2, distributions are taxed at two rates: 24.5% up to €68,843 per person (double for fiscal partners) and 31% above that. Pay out up to the top of the low band every December. You then save 6.5 percentage points on every euro, compared with one large payment in the year you exit. The formalities take one afternoon: a shareholder resolution, the balance-and-liquidity test on file, and the withholding tax paid. See how Dutch dividend tax works.
Buybacks and capital returns
With a buyback, one shareholder can exit and take out cash, and the others stay invested. For the seller, the proceeds are taxed in box 2. The notary handles the paperwork. With a capital return, the company repays formally reduced capital tax-free, as far as there is real paid-in capital. Check this once, because most BVs founded with €0.01 in capital have very little paid-in capital.
See the Dutch holding structure for what you save with a holding above the operating company, and what it involves each year. To keep both companies in good standing, see corporate secretarial services in the Netherlands.
Your company registers one business address at the Dutch Chamber of Commerce (KVK). You choose that address and sign the contract yourself. See what the law asks of a business address in the Netherlands.
Year-end planning
Set the mix for each year in one session. Use the low bracket and check the salary again. The standard is the €58,000 customary salary. A lower salary is allowed if comparable work pays less, or for up to three years while a new BV still lacks the money to pay the full salary. A prior consultation with the Tax Administration gives you certainty in advance. For private cash needs between distributions, you can borrow up to €500,000 from the company. The lower salary is what saves tax. With a salary of €36,000 compared with €58,000, you keep about €7,100 a year more. After a later dividend, about €2,800 of that remains. The loan gives you access to money, but your tax stays the same. Calculate it with your own figures. See salary and borrowing combined and, for later years, retirement planning.