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Putting family on the payroll: when it works and what it takes

Updated: 2026-08-17 Holdwise editorial team

You can pay a partner or family member from your BV (besloten vennootschap, a Dutch private limited company). The arrangement must be the same as one you would make with a stranger. Three conditions apply: real work, a market rate and proper payroll administration. Meet these conditions from the start. This is easier than defending the arrangement after a check by the Tax Administration. At Holdwise, we keep this answer up to date and change it when the rules change.

The three conditions

Real work. The family member really does the tasks, such as editing, planning, correspondence, bookkeeping or production.
A market rate. What you would pay someone outside the family for the same hours and the same skill.
Proper administration. An employment contract, payroll processing, payslips and payment into their own bank account.

If you meet all three conditions, the salary is a normal business cost. If you miss one of them, the Tax Administration can challenge the deduction. The correction can then come years later.

What tends to go wrong

A salary based on tax planning more than on the work, with hours that are impossible to describe.
Payment into a joint account, so the salary is mixed with other money.
A rate that is far higher than the work justifies.
Paperwork made afterwards, in the same handwriting as the rest of the file.

The customary salary rules for your partner

If your partner also owns shares and works in the company, the customary salary rules may apply to your partner too. The same amount of €58,000 applies, with the same exceptions. A lower customary salary is allowed if comparable work pays less, or for up to three years while a new BV is still unable to pay the full salary. You can also 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.

Children

You can employ your own children if they do real work for a suitable rate. The rules on working hours and types of work for young people apply. Keep good records, because the Tax Administration often asks questions about this arrangement.

A freelance alternative

If the work is occasional, a freelance arrangement may suit better than payroll. This only works if the relationship is really independent. See hiring your first editor for this test. For confidentiality, see your team and your secrets.

Frequently asked questions

Can I pay my partner from my company? +

Yes, if there is real work, a market rate and proper payroll administration. Pay the salary into their own bank account.

When can the Tax Administration challenge the deduction? +

When the salary is based on tax planning more than on the work, or when the hours are impossible to describe. Also when the salary is paid into a joint account, or when the paperwork was made afterwards.

Can I employ my children? +

Yes, if they do real work for a suitable rate. The rules on working hours and types of work for young people apply. Keep good records, because the Tax Administration often asks questions about this.