Three ways to set up your European company

  • Dutch BV under the US parent: the standard first relocation. The BV employs the EU team and signs EU customers, and dividends to the US parent get treaty protection: Delaware and Dutch BV together.
  • Reverse flip: the Dutch holding becomes the top company of the group. Groups choose this when most revenue or most investors come from the EU. Groups also choose it when they plan to sell the company in the EU. See how a reverse flip works.
  • Founder-led BV with the US company as a client: solo and seed-stage founders who relocate to the Netherlands first often start this way. See DAFT with your US company.

Hiring engineers in the Netherlands

With the 30% ruling, your employees from abroad receive 30% of their salary tax-free in 2026. The salary norm for the ruling is €48,013. Your cost for a senior engineer is then lower than at Bay Area rates. English is the working language in Dutch tech. People from all EU countries can work across borders, because the EU is one open labour market. For your first Dutch employee, see payroll, contracts and costs.

Employing staff from abroad? See Dutch payroll services for companies from abroad.

Product profit at 9%

The Dutch innovation box taxes qualifying profit from self-developed IP at 9%, well below the regular 19%/25.8% brackets. This is a structural reason product companies keep IP here: transferring IP into the BV.

Compare the Netherlands with Ireland and Germany on tax, substance, running costs and time. See setting up a Dutch subsidiary for a foreign parent company.

Founders who relocate to the Netherlands

As a founder, you can use the Dutch American Friendship Treaty (DAFT) for yourself. You put €4,500 of equity into your company and get a permit for two years. After that, you can renew it as long as the business and the capital stay in place. Through the payroll of your own company, you can also use the expat ruling. See the DAFT guide and the expat ruling for founders. To keep the list of shareholders (cap table) in order for the next funding round, see US investors in your Dutch BV.