Tax for businesses in the Netherlands in 2026
Dutch Tax Advantages
| Incentive | What it does | Who benefits |
|---|---|---|
| Participation Exemption | Tax-free dividends & capital gains on 5%+ subsidiaries | Holdings Multi-entity structures |
| 30% Ruling | 30% of salary tax-free for 5 years | Expats Recruited from abroad |
| Innovation Box | 9% corporate tax on qualifying IP profits | Tech R&D companies |
| WBSO | Wage tax credit for R&D activities | Any company doing development |
| Startup DGA Exception | Minimum wage instead of €56k salary for 3 years | Early-stage R&D startups |
| Fiscal Unity | Consolidate profits/losses across group companies | Holding + Operating BV |
| Loss Carryforward | Unlimited years to offset future profits | Any company with early losses |
| Loss Carryback | 1 year to reclaim prior year's tax | Profitable company with sudden loss |
How much tax does a BV pay in the Netherlands?
We will discuss how much you and your company will pay in tax using concrete calculations. It is important to differentiate between the taxes the company has to pay and the personal tax the shareholder, director or employee needs to pay.
A simple BV usually pays corporate income tax over its profits and VAT on purchased goods or services. In turn, the person behind the company, is usually liable for wage tax (if employed by the company), tax on substantial interest (if any dividends distributed) and personal income tax on all other income.
Corporate tax in the Netherlands (BV)
| Profit | 2025 | 2026 |
|---|---|---|
| SME tariff | 19% (up to €200.000) | 19% (up to €200.000) |
| Standard tariff | 25,8% (profits exceeding €200.000) | 25,8% (profits exceeding €200.000) |
| Innovation Box | 9% on profits derived from qualifying innovative activities | 9% on profits derived from qualifying innovative activities |
Carryforward and carryback
Participation Exemption (Deelnemingsvrijstelling)
One of the Netherlands' most powerful tax features for holding structures. If your BV owns at least 5% of another company, dividends received and capital gains on sale are exempt from corporate tax.
Practical example:
Operating BV makes €100,000 profit → pays €19,000 corporate tax (19%) → distributes €81,000 dividend to Holding BV → €0 tax on the dividend.
Without participation exemption, Holding BV would pay another €15,390 (19%) on that dividend - effective double taxation.
Why this matters:
- Sell your operating company? Proceeds flow tax-free to your holding
- Multi-entity structures? Move profits between subsidiaries without leakage
- International? Works with foreign subsidiaries too (conditions apply)
This is why the BV + Holding structure is standard practice for any serious entrepreneur in the Netherlands.
Tax Qualification: The US-Dutch Entity Mismatch
A critical hurdle for US companies expanding to the Netherlands is the "fiscal qualification" (fiscale kwalificatie) process. The Dutch tax authorities independently qualify your US legal form to determine its treatment under local law. This impacts:
- Taxing Level: Whether income is taxed at the entity level or at the shareholder level.
- Withholding: How dividend distributions, interest, and royalties are taxed under the US-NL treaty.
- Treaty Access: Your eligibility for specific benefits in the Netherlands' extensive tax treaty network.
A US LLC is often treated as "transparent" for Dutch tax purposes (like a partnership), even if it is treated as a corporation in the US. This mismatch can trigger unexpected tax liabilities or, if structured correctly, significant optimization opportunities.
NordicHQ ensures your corporate structure leverages the US-Netherlands Tax Treaty effectively from day one.
Personal income tax (BV or sole proprietorship)
| Personal Income Tax (IB) | 2025 | 2026 |
|---|---|---|
| Bracket 1 | 35,82% up to €38.441 | 35,75% up to €38.883 |
| Bracket 2 | 37,48% from €38.441 to €76.817 | 37,56% from €38.883 to €78.426 |
| Bracket 3 | 49,50% over €76.817 | 49,50% over €78.426 |
Substantial interest tax on dividends (BV)
Dividends received by a shareholders-directors with 5% or more of the shares in a BV in the Netherlands are subject to box 2 income tax. The amount of tax due will depend on the total amount of dividend income and any applicable deductions or credits. Since the effective total tax on dividends is substantially lower than tax on the director-shareholder's salary, the Dutch tax authorities have introduced a mandatory salary. This DGA-salary is set at 51.000 euros in 2023. Generally, if the company is not able to pay for this, it is not forced to pay out such a salary. A decrease of this DGA-salary can be applied for at the Dutch tax authorities.
Important: never pay out dividend before paying out the mandatory DGA-salary.
| Box 2: Substantial Interest | 2026 |
|---|---|
| Up to €68.843 | 24,5 % |
| Over €68.843 | 31 % |
Wage tax for Director-Shareholder (BV)
A shareholder-director with at least 5% of the shares in a BV, will need to pay a DGA-salary of at least 58.000 euros in 2026. You are required to pay both Box 1 personal income tax and social security contributions on your salary. This Box 1 personal income tax rate is determined by your total income and dependents. Depending on your personal circumstances, you may be able to reduce your total liability through deductions or credits available in the Netherlands.
| 2025 | 2026 | |
|---|---|---|
| Gross annual income | € 58.000 | € 58.000 |
| Personal income tax | − 21.080 | − 20.920 |
| Health insurance contributions | − 3.190 | − 3.250 |
| General tax credit | + 1.260 | + 1.310 |
| Labour discount | + 4.680 | + 4.850 |
| Net income | € 39.670 | € 39.990 |
| Tax burden (incl. healthcare) | 31,6% | 31,1% |
Minimum Salary (DGA) in the Netherlands
For 2026, the statutory customary salary benchmark for a Director-Major Shareholder (DGA) is €58,000. However, there are specific nuances and exemptions regarding this requirement:
- Insufficient profit or cash flow: If the BV does not make a profit or has very little profit, the company is not required to incur debts to pay the salary. In these cases, you can request the tax authorities to reduce the customary wage based on the actual operating results.
- Start-ups: Starting companies may apply for a relaxation of the scheme for the first 3 years. This often allows the DGA to take the statutory minimum wage instead of the full benchmark.
- Director only (No shares): If a director owns less than 5% of the shares, the customary salary requirement does not apply. The salary must be based on the actual work and hours put into the company, but a minimal salary for formal tasks is possible.
How much tax do I pay as a ZZP / Eenmanszaak in the Netherlands?
A sole proprietorship in the Netherlands is considered to be a "natural person" for tax purposes, and as such, the owner is subject to personal income tax. The exact same principle applies to a general partnership (or VOF in Dutch). In effect, all income left after deduction of costs is taxed annually at the personal income tax rate (see below):
| ZZP disposable income (2026) | Calculation | Amount |
|---|---|---|
| ZZP revenue minus expenses | € 60.000 | |
| Private business ownership allowance | − 3.323 | |
| SME profit exemption (12.7%) | − 7.198 | |
| Personal income (Box 1) | € 49.479 | |
| Tax & Premium National Insurance | 17.881 | |
| General tax credit | − 1.852 | |
| Labor tax credit (Arbeidskorting) | − 5.432 | |
| Personal income tax due | − 10.597 | − 10.597 |
| Healthcare contribution (ZVW) | − 2.400 | − 2.400 |
| Disposable annual income | € 47.003 |
Subsidies and tax schemes for ZZP
The following tax subsidies are given to entrepreneurs running a sole proprietorship (ZZP) or general partnership:
- Private business ownership allowance (zelfstandigenaftrek)
- Tax relief for new companies (Startersaftrek)
- SME profit exemption (MKB-winstvrijstelling)
- Small businesses scheme (kleineondernemersregeling, KOR). The Kleineondernemersregeling (Small Business Scheme) is a tax-free allowance available to entrepreneurs in the Netherlands. This scheme permits small businesses to withhold 0% tax on their turnover, instead of the normal 21%.
Tax deductions ZZP / eenmanszaak
As a sole proprietor in the Netherlands, you may be eligible for several deductions that could potentially reduce your tax liability. These deductions include costs related to business operations and investments, professional fees, donations to charities, and expenses related to home-office work. Additionally, you may be able to deduct expenses such as travel costs, insurance premiums, and other business expenses. Your tax bill can be reduced by applying the following deductions.
| Costs | Which part is deductible? | Notes |
|---|---|---|
| Home workspace | 0% (some exceptions apply) | |
| Food, drink, stimulants | A threshold of € 4,600 applies. Instead of this threshold, entrepreneurs working as sole proprietor or in a partnership are allowed to deduct 80% of these costs and entrepreneurs for corporation tax (bv) 73.5%. | The item 'food' includes business lunches and dinners (including tips). Think of 'drink' to coffee, tea, milk and soft drinks. With 'stimulants' you should think of, among other things, cigarettes and cigars. |
| Representation, congresses, seminars, study trips (including travel and accommodation costs) | Instead of this threshold, entrepreneurs working as sole proprietor or in a partnership are allowed to deduct 80% of these costs and entrepreneurs for corporation tax (bv) 73.5%. | 'Representation' includes the costs of receptions. Promotional gifts also generally fall under 'representation' You may deduct a maximum of € 1,500 for the travel and accommodation costs. Was it necessary for your work to attend a conference and the like? Then this maximum does not apply. |
| Telephone subscription at home | 0% | |
| Business phone calls at home | 100% | |
| General literature | 0% | |
| Professional literature | 100% | |
| Workwear | 100% | Work clothing is clothing that you can wear (almost) exclusively within the framework of your company. This must be evident from the appearance of the clothing, for example: a uniform or overall. Is the clothing also suitable for wearing outside of your company? The clothing must then be provided with a logo with a surface area of at least 70 cm2. The logo must refer to your company. |
| Clothing (no work clothes) | 0% | |
| Personal care | 0% | |
| Briefcases and similar | 100% | |
| Equipment and instruments that do not belong to the business assets | 0% | |
| Moving | Limited | |
| Double housing | Limited | |
| Fines | 0% | |
| Company car | Limited | |
| Business costs of private car | A fixed amount of € 0.19 per kilometer. | |
| Business travel costs public transport, taxi and plane | 100% of the costs actually incurred | You must be able to prove that you actually incurred these costs. For example, save your train ticket. Are you traveling with an OV chip card? Then make a print out of your journeys. |
| Vessels for representative purposes | 0% |
Example BV: How much tax will I pay?
To give you a rough estimate you can use the following example:
Business X BV is owned by Mr. Y. He is the 100 percent shareholder and also the managing director. X BV has a revenue of €250,000. The costs excluding salaries are €100,000.
Mr. Y would like to receive around €50,000 in net income. The minimum director/major-shareholder salary (DGA-salaris) he has to pay in 2026 is set at €58,000. The shareholder/director in X BV is normally forced to pay out a salary. This is only the case if there are sufficient funds in the company.
Mr. Y decides to pay out the minimum amount of €58,000 in salary. This will be taxed at the progressive income tax rate:
| Personal Income Tax (IB) | 2026 Rates |
|---|---|
| Bracket 1 | 35.75% up to €38,883 |
| Bracket 2 | 37.56% from €38,883 to €78,426 |
| Bracket 3 | 49.50% over €78,426 |
Including payments for social security and the applicable deductions, Mr. Y will keep roughly €40,300 of that €58,000 after tax.
Meanwhile the company has, after general costs and Mr. Y's salary, €92,000 in profit before tax. First of all, X BV will pay corporate income tax at the following rate.
| Profit | 2026 Rate |
|---|---|
| SME tariff | 19% (up to €200,000) |
| Standard tariff | 25.8% (profits exceeding €200,000) |
| Innovation Box | 9% on qualifying profits |
In this scenario, the business has to pay 19 percent in corporate income tax, so roughly €17,480. Meaning X BV has €74,520 in net profit.
Mr. Y would like to receive a total disposable income of roughly €50,000. The remainder on top of the mandatory major-director/shareholder salary can be paid out as dividend instead of salary. This is taxed at the so-called substantial interest tax in box 2 of the Dutch tax system.
| Box 2: Substantial Interest | 2026 Rate |
|---|---|
| Up to €68,843 | 24.5% |
| Over €68,843 | 31.0% |
This means he should pay out an additional +/- €12,850 of the profits as dividend to himself to add another €9,700 in net income. This makes his total net income roughly €50,000.
Conclusion:
X BV pays €17,480 in corporate income tax over a €92,000 profit. Besides that the BV usually incurs employer/wage costs which will not be discussed here.
In our example Mr. Y received a total pre-tax income of €70,850 consisting of salary and dividend. He pays around €17,700 in personal income tax and €3,150 in substantial interest tax to receive a net income of €50,000.