The two options compared
| Employer-of-record | Own Dutch BV | |
|---|---|---|
| Time to first hire | Days | Weeks (entity + payroll setup) |
| Costs | Fee per employee per month, for as long as you use it | Fixed setup + a fee per payslip |
| Contracts & IP | Via the provider’s entity | Directly with your company |
| EU customers & VAT | Outside the service | Included, because the BV can also sell |
| The 30% ruling | Possible via the provider | Your BV arranges it (how the ruling works) |
When your own BV becomes cheaper
Employer-of-record providers charge a fee per employee per month. Your own BV has setup and running costs. It usually becomes the cheaper option between the second and the fourth hire. This happens earlier when the BV also handles sales, VAT and customer contracts. An employer of record only employs your staff. See what your own payroll involves.
Comparing an employer of record with your own BV? See Dutch payroll for your own company, from the first employee onwards.
A common way to start
Start with the employer-of-record option if the hire is signed and the entity is still pending. Incorporate the BV in parallel (usually within one week once all documents are complete). Transfer the team to your own payroll at a clear month-end. Employees see a new employer name and identical terms, and your IP, contracts and customer relationships consolidate where they belong: the standard stack.
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.
The VAT return is due every quarter, the payroll every month and the annual accounts once a year. Read more about this work, and how the monthly amount is calculated, on bookkeeping in the Netherlands.
Founders who relocate to the Netherlands
A founder who relocates to the Netherlands personally has another option. Under the treaty, you can become your own employer through your own BV. See the guide to the Dutch-American Friendship Treaty (DAFT).