How it works
When a BV pays a dividend, it keeps 15% and remits that to the tax authority within one month, with a dividend tax return. The shareholder receives 85%. The 15% is a prepayment, and what happens next depends on who the shareholder is.
A Dutch resident with a substantial interest pays box 2 on the full dividend and deducts the 15% already paid. A Dutch holding with 5% or more receives the dividend with 0% withholding, because the participation exemption applies.
A foreign shareholder looks at the tax treaty. Many treaties lower the 15% to 10%, 5% or 0% for a company that owns a substantial stake. Within the EU a parent company with 5% or more receives the dividend at 0%. The Dutch treaty network has around 100 agreements.
Interest and royalties leave the Netherlands free of withholding tax; only payments to listed low-tax countries face a conditional levy. That combination is one of the reasons foreign groups put their European holding in the Netherlands.
Example
A BV pays €100,000 dividend to its Indian parent company. Under the treaty with India the rate is 10%, so the BV withholds €10,000 and pays €90,000. The Indian parent credits the €10,000 in India where the treaty allows it.
The figures
All 2026 figures: Netherlands tax rates 2026 · the 2027 figures: Netherlands tax rates 2027.
Questions people ask
When is the dividend tax return due?
Within one month after the dividend is made payable. The BV files the return and pays the withheld amount in the same month.
Can a foreign shareholder reclaim withholding tax?
Yes, when the treaty rate is lower than what was withheld, the shareholder claims the difference from the Dutch tax authority. Applying the treaty rate at source, with the right forms, avoids the refund process.
Holdwise, Hoofddorp. Definition and explanation maintained with the Dutch and German glossaries; figures from the central rates source, year 2026. Updated 16 September 2026.
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