FAQ
Frequently Asked Questions
Honest answers to the most common questions about Dutch BV formation, corporate tax, DGA salary and holding structures — for international entrepreneurs.
Company formation & BV
What is a BV (Besloten Vennootschap)? +
A BV is the Dutch private limited company — equivalent to a UK Ltd or German GmbH. It is a separate legal entity, meaning your personal assets are protected from business debts. Corporate tax is 19% on the first €200,000 profit. Since 2012, there is no minimum share capital.
How long does it take to incorporate a BV? +
With an online notary: 3–7 working days. With a traditional notary: 1–3 weeks. The KVK number is issued within 1–3 days after the deed is filed.
Do I need to be a Dutch resident to own a BV? +
No. Non-residents can fully own and operate a Dutch BV. You do need identification documents and in some cases a Dutch address (a registered office address service can help).
What is a holding structure and do I need one? +
A holding structure means a holding BV above your operating BV. Dividends flow tax-free from operating company to holding (participation exemption). You can sell the operating company without paying personal tax on the gain. We strongly recommend it for any serious entrepreneur.
What is the participation exemption (deelnemingsvrijstelling)? +
When your holding BV owns at least 5% of another company, dividends and capital gains on that investment are 100% tax-free at the holding level. This is the cornerstone benefit of the Dutch holding structure.
Tax & DGA salary
What corporate tax rate does the Netherlands have? +
In 2026: 19% on the first €200,000 profit, 25.8% above that. If your BV develops qualifying innovative products (WBSO), the innovation box rate is 9% on that profit.
What is the minimum DGA salary in 2026? +
€56,000 gross per year — the "customary salary" (gebruikelijk loon). The Tax Authority may require a higher salary if comparable employees earn more. The optimal strategy is minimum salary plus dividend income.
How is dividend taxed in the Netherlands? +
Dividends from your BV to you personally are subject to 15% withholding tax plus box 2 income tax. In 2026: 24.5% on the first €68,843 and 31% above that. The 15% withholding is offset against your final tax bill.
Is it better to take salary or dividend as DGA? +
Typically: keep salary at the minimum (€56,000) and take extra income as dividend. Dividend at 24.5% is significantly cheaper than the top income tax rate of 49.5%. The exact optimal mix depends on your BV's profit and your private needs.
Can I use my BV to invest? +
Yes. Investing via your holding BV (in index funds, real estate or other companies) is often more tax-efficient than investing privately, because profits grow against corporate tax (19%) rather than the annual box 3 wealth tax (36% in 2026).
International entrepreneurs
I am Irish/British/American — can I set up a Dutch BV? +
Yes. There are no nationality restrictions for BV ownership or directorship. You will need a valid passport, and in some cases a Dutch address or DigiD. Holdwise specialises in helping international entrepreneurs navigate this.
Does my Dutch BV need to file accounts in English? +
Annual accounts at the KVK must be filed in Dutch (or one of a few other approved languages). However, your accountant can provide you with English-language reports for your own use.
What is the 30% ruling and do I qualify? +
The 30% ruling allows qualifying expat employees to receive 30% of their salary tax-free. As a DGA of your own BV, you may qualify if you were recruited from abroad and meet the salary requirements. As of 2025, the ruling is being phased down — consult a tax advisor for your specific situation.