DAFT: a BV or a sole proprietorship, and what comes after the permit

BV or sole proprietorship: the decision table

The tax rows are approximations for 2026 for a single person under the state pension age who meets the 1,225 hours criterion, with the self-employed deduction of €1,200 and the SME profit exemption of 12.7%, and for the BV a salary of €58,000 (or the profit when that is lower). The starter deduction and the expat scheme are left out. Try your own figures in the profit calculator and the director salary calculator.

How the tax works in each form

In a sole proprietorship the profit is your income. From the profit you deduct the self-employed deduction, €1,200 in 2026 and €900 in 2027, and then 12.7% of what is left as SME profit exemption. The rest is taxed in box 1: 35.75% up to €38,883, 37.56% up to €78,426 and 49.5% above, minus the general tax credit and the labour tax credit. On top comes the healthcare contribution of 4.85% on the income up to €79,409.

In a BV you are the employee of your own company. The tax office expects a customary salary of €58,000 in 2026, with a lower salary allowed in a few cases, such as a new BV that lacks the money to pay the full amount. The salary is taxed in box 1 like any wage. The profit after your salary is taxed with corporate tax: 19% up to €200,000 and 25.8% above. What you pay out to yourself as dividend is taxed in box 2: 24.5% up to €68,843 per person and 31% above. Profit that stays in the BV is taxed once, at the corporate rate, until you take it out.

That is why the lines cross around €100,000 of profit. Below it, the deductions of the sole proprietorship win. Above it, the BV wins when you leave part of the profit in the company, and the expat scheme widens the gap for a BV that pays you a salary of €48,013 or more.

The expat scheme: only with a BV, and the order matters

The expat scheme is for people in paid employment. A sole proprietor works for himself, so the scheme is out of reach. With a BV, the BV is your employer and applies for the scheme for you. The conditions of the Dutch tax office: you were recruited from outside the Netherlands, you lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months before your first working day, and your taxable salary is at least €48,013 a year in 2026 (€36,497 under 30 with a master’s degree). In 2026 the BV may pay up to 30% of your salary tax-free, with a maximum of €78,600; from 1 January 2027 the maximum is 27%. The ruling is valid for at most 5 years.

Because you must be recruited from abroad, set up the BV and sign the employment contract while you still live in the United States, then relocate. With a salary of €58,000 the tax-free part is limited to the amount above the €48,013 minimum, about €10,000 a year; with a higher salary the full percentage applies. The tax office decides on the request. See the 30% ruling calculator.

After the permit: the 6 months, the renewal and the capital

For a first application under the treaty you have 6 months after the date on the decision letter to register the business with the Chamber of Commerce and to make the investment. The IND may withdraw the permit when either is missing after those months. The permit is valid for up to 2 years at a time, and the fee is €423 for the application and €423 for an extension.

At renewal the IND asks for your annual accounts and a balance sheet or income statement. It reads two things in them: the business has been active, and the invested capital stayed in the business. The financial documents are checked by an independent external expert, such as your bookkeeper or accountant. A BV shows the €4,500 as equity on its balance sheet in every set of annual accounts; a sole proprietorship shows it in the books and on the business bank account. The test is the equity of the business: it stays at the level of the investment, and the annual accounts show it. Spending the money on things the business needs leaves the equity in place; a private withdrawal takes it out. After 5 years of residence you can apply for permanent residence.

We keep the books with the renewal in mind: the capital visible on the balance sheet, invoices and bank statements in order, and the annual accounts ready in time for the extension.

The US side: you stay a US taxpayer

A US citizen living abroad stays subject to US tax on worldwide income from all sources, with the same filing rules as at home. The US rules for a Dutch business owned by a US person are a matter for a US tax adviser; Holdwise gives Dutch tax advice and works with a US adviser from its network. Two forms are named on the IRS website: Form 5471 is filed by certain US citizens and residents who are officers, directors or shareholders in certain foreign corporations, which a BV can be. Form 2555 is the form for the foreign earned income exclusion for people who qualify.

The choice between a BV and a sole proprietorship therefore has two halves: the Dutch half in the table above, and the US half with your US adviser. Make the choice with both in view, before the deed is signed.

One Dutch company, many roles

A BV under DAFT is more than the vehicle for the permit. It is your employer for the expat scheme, the contracting party for your US and EU clients, the holder of your Dutch VAT number and your business bank account, and later the company under a holding when you sell or invest. One company, one set of annual accounts, also for the IND.

Prices: your Dutch company (BV) from €2,950 excl. VAT, and a holding with an operating company from €4,950 excl. VAT. Bookkeeping, payroll and the US adviser have their own price, which you see first. Holdwise provides neither a registered address nor directors: the company is yours and the address is yours. See company formation in the Netherlands.

Who does what

• You choose the legal form, invest the €4,500, sign the IND application and run your business. You see every price first.
• We set up the BV by power of attorney or guide the registration of the sole proprietorship, prepare the opening balance sheet, keep the books, do the payroll for your salary with the expat scheme, and prepare the annual accounts for the renewal.
• Partners are the notary for the deed, an immigration lawyer for the IND application when you want one, and a US tax adviser for the US side. The IND and the tax office decide.

The full checklist for the permit is in the DAFT visa in 2026. Want our team to have a look?

Sources

• IND, Residence permit self-employed person: the treaty route for US and Japanese citizens, the €4,500, the 6 months, the term of 2 years and the renewal documents (13 October 2026).
• IND, application form 7524-2026/2: the documents per legal form and the check by an independent external expert.
• IND, Fees: costs of an application (read 27 October 2026).
• Belastingdienst, the expat scheme (30% ruling) (changed 13 May 2026); Business.gov.nl, the expat scheme, 27% from 2027.
• Belastingdienst, customary salary of a director-shareholder 2026; income tax, corporate tax and box 2 rates 2026 (Tax Plan 2026 as adopted) through the central figures file of this site.
• IRS, U.S. citizens and resident aliens abroad, About Form 5471 and About Form 2555 (read 27 October 2026).

Last reviewed: 27 October 2026. Based on the IND, Belastingdienst, Business.gov.nl and IRS pages named in the sources, as they read on 27 October 2026. The tax figures are approximations for 2026 from the rates in the central figures file of this site. The IND decides on every application.

Common questions