Why a BV is often better than private trading

In the BV, the company pays tax on the real result. Profit is taxed at 19% up to €200,000, and at 25.8% above that. You can set off losses against other years. The costs of trading, such as data feeds, infrastructure, software and the home office, are normal business expenses. In box 3, you pay tax on a deemed return above €59,357 per person. If your actual result for the year is lower, you can show that and pay tax on the actual result instead. Systematic trading with borrowed capital and special tools already counts as a business, under the same rule that applies to crypto founders.

What the trading BV needs

The BV trades only its own capital. If you take in money from others, the licence rules apply. See the overview of financial licences. The BV needs a brokerage account in its own name, a written trading mandate and written risk limits. Banks and brokers ask for these documents. In the bookkeeping, you value the positions according to a written policy. A holding company above the BV keeps the retained profits for later use. See the holding structure.

You can set up the company by power of attorney, from any country. This usually happens within one week once all documents are complete. See setting up a BV in the Netherlands from abroad.

Salary and borrowing for the trader

As director-shareholder (DGA), you usually combine salary and borrowing. The benchmark salary is €58,000. If the BV is just starting and still has too little money to pay that amount, a lower salary is allowed for up to three years. A prior consultation with the Tax Administration gives you certainty in advance. For private money, you can borrow up to €500,000 from your own BV. The lower salary is what saves tax. At €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. You then pay out dividends in the years when they fall within the 24.5% band. See salary and borrowing for a DGA and the timing of dividends.