Dutch Legal Entity Comparison 2026
Compare the four main Dutch business structures on tax, liability, setup cost and suitability. Find out which one is right for your situation.
The four main Dutch legal structures
| Feature | Sole Trader (ZZP) | VOF (Partnership) | BV (Ltd) | BV + Holding |
|---|---|---|---|---|
| Personal liability | Unlimited | Unlimited (joint) | Limited | Limited |
| Min. setup cost | €76 KVK | €76 KVK | €475+ | €800+ |
| Tax on €100k profit | ~€32,000 | ~€32,000 | €19,000 (Vpb) | €19,000 (Vpb) |
| Self-employed deduction | €1,200 | €1,200/partner | No | No |
| Participation exemption | No | No | No | Yes |
| Tax-free exit | No | No | No | Yes |
| Best for | Profit <€60k | 2+ partners, profit <€80k | Profit €60k–€120k | Profit >€80k, long term |
Sole Trader (Eenmanszaak / ZZP)
The simplest structure, ideal for starting entrepreneurs. You register at the KVK (€75.80) and start immediately. All profit is taxed as personal income. In 2026 you benefit from the self-employed deduction (€1,200) and SME profit exemption (13.31%).
Liability: Unlimited. Your personal assets (house, savings) can be seized to pay business debts. This is the biggest risk of a sole trader structure.
Best for: Annual profit below €60,000, low liability risk, simple business.
General Partnership (VOF)
Two or more partners run a business together. Each partner is personally and jointly liable for all partnership debts — if your partner makes a mistake, you are liable too. VOF is suitable for small partnerships but becomes risky as the business grows.
Best for: Two or more founders, combined profit below €80,000, low liability.
BV (Besloten Vennootschap)
The Dutch private limited company. Separate legal entity, limited liability, corporate tax of 19% (up to €200k profit). Requires at least one notary deed and KVK registration. Annual accounts must be filed at the KVK.
Best for: Annual profit €60,000–€120,000, or lower profit but with high liability risk.
BV + Holding Structure
The gold standard for serious Dutch entrepreneurs. A holding BV (the parent) owns 100% of an operating BV. Dividends flow tax-free from operating to holding. When you sell the operating company, the gain is tax-free at holding level. Wealth accumulated in the holding is ring-fenced from business risks.
Best for: Annual profit above €80,000, plans to scale or sell, long-term wealth building.