What the BV files in the Netherlands
In the Netherlands, the company has four fixed obligations each year. It files a corporate income tax return (vennootschapsbelasting, VPB) within five months of the end of the financial year, unless extended. The rate is 19% on the first €200,000 of profit and 25.8% above. It files value added tax (btw) returns, monthly or quarterly, depending on the amounts. It pays payroll tax on the salary of the director-shareholder, once the owner takes a salary. It also publishes the annual accounts with the Chamber of Commerce (KVK), within twelve months of the year end. Small companies file an abbreviated version.
Your own Dutch position as owner depends on where you live. If you live in the Netherlands, you file a Dutch income tax return. In it, you declare the customary salary for a director-shareholder (€58,000 in 2026). A lower salary is possible in a few cases, for example as long as a new BV has too little money for the full salary. You also declare any dividend in box 2 (tax on income from your own company). The dividend is taxed at 24.5% up to €68,843 and 31% above. If you live outside the Netherlands, your Dutch return only includes income from Dutch sources.
What the owner files in the United States
As a US citizen, you file your ordinary US return wherever you live. As the owner of the BV, you also file four items:
- Form 5471: the information return for the foreign corporation, in most Dutch cases under filing categories 4 and 5. The details are in Form 5471 and your Dutch BV.
- NCTI: net CFC tested income, called GILTI (global intangible low-taxed income) up to tax year 2025. Under these rules, BV profit can be taxed in your US return in the year the BV earns it, before it is paid out. With the Dutch 19% rate, the result is reasonable for most BVs. The section 962 election often lowers the US tax further. See NCTI (formerly GILTI) and your Dutch BV.
- FBAR: the report of foreign bank and financial accounts, due when the combined balances are above $10,000 at any point in the year. If you can sign for the BV’s account, that account counts too, so you include it in the report. See FBAR and your Dutch business account.
- Form 8938: the FATCA statement of specified foreign financial assets, filed with the return when the thresholds are met. It overlaps with FBAR, and each one is a separate filing duty.
Certain choices require extra forms. Form 8832 is for choosing how the BV is classified for US purposes. Form 1116 is for foreign tax credits. Form 2555 is for the foreign earned income exclusion on salary. Form 8621 is needed when the owner personally owns foreign funds.
The calendar, side by side
| Filing | Country | Ordinary deadline |
|---|---|---|
| US income tax return (with Form 5471, Form 8938 and the NCTI calculation, formerly GILTI) | United States | 15 April; 15 June abroad; 15 October on extension |
| FBAR (FinCEN Form 114) | United States | 15 April, automatic extension to 15 October |
| Dutch corporate income tax return | Netherlands | Within 5 months of year end; extension available |
| VAT returns | Netherlands | Monthly or quarterly, one month after the period |
| Annual accounts with the KVK | Netherlands | Within 12 months of year end |
| Dutch income tax return (residents) | Netherlands | 1 May, extension available |
Timing is the main problem. You need the BV figures for the US return by June, but the Dutch accounts are often ready later. Ask your Dutch accountant for a trial balance by March. Your US filing is then easier to finish on time.
How double taxation is avoided
You avoid full double taxation of the same income with two tools. These are the tax treaty between the Netherlands and the United States, and the foreign tax credit. The Dutch corporate tax that the BV pays counts in the NCTI calculation (called GILTI up to tax year 2025). You can generally credit Dutch income tax on salary and dividends against the US tax on the same income. Under the treaty, the two countries divide the taxing rights where both have a claim. For a typical Dutch operating company, the extra US tax is usually small or zero. Your main cost is the preparation work.
Think through two choices early. The first is the classification election. For US purposes, a BV is treated as a corporation unless you choose otherwise. If you treat it as a disregarded entity, your whole filing changes, with advantages and disadvantages. The second is the holding structure. With a Dutch holding company above the operating BV, a later sale can fall under the participation exemption. You also file a second Form 5471. See the holding structure page for this trade-off.
Your advisers
In practice, you need three advisers. First, a Dutch accountant for the company’s books, the corporate tax return and the KVK filing. Second, a US preparer with experience in controlled foreign corporations, for Form 5471, NCTI (formerly GILTI) and FBAR. Third, an adviser who keeps the structure consistent as the business grows. Each of them knows their own system well. Agree on a fixed format for the handover of figures between them, and use it every 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.
Once the company is set up, you have the same four tasks every year. The full list with the dates is on running a Dutch BV in 2026.
Two other subjects
Beyond the returns themselves, two subjects decide real amounts for Americans in the Netherlands. Social security: the totalization agreement assigns contributions to one country, and which one depends on how you work. And state tax: the treaty binds the federal government, so a handful of states continue to assess someone who relocated abroad. Both are best settled by preparing in advance.