Dutch Tax Tips: Starting a business in the Netherlands

The Netherlands continues to rank among the most attractive destinations for entrepreneurs in Europe. Its strategic location, business-friendly policies, and strong international trade connections make it ideal for starting a business in the Netherlands, whether you’re a local entrepreneur or an international investor.

This comprehensive guide explores everything from starting a business in the Netherlands as a foreigner to tax obligations, legal structures, and the best business to start in the Netherlands. We will also cover doing business in the Netherlands under its competitive regulatory framework and explain the corporate income tax in the Netherlands for different types of enterprises.

The Netherlands is a Prime Destination for Business in 2025

Starting a business in the Netherlands is one of the best decisions that entrepreneurs can make. They will be able to enjoy the benefit of a business environment that is not only the most stable but also very transparent across the entire EU. The country, with its excellent infrastructure, highly skilled labor force, and easy access to European markets, is really a powerful springboard for global market expansion.

While the World Bank’s Doing Business report was discontinued in 2021, the Netherlands continues to perform strongly across competitiveness and innovation benchmarks. Efficient public institutions, a reliable legal system, strong IP protection, and high English proficiency make the business environment highly attractive for entrepreneurs. Moreover, English proficiency is also quite high, which means that foreign investors find it easier to integrate.

The Dutch government is always open to and welcomes foreign direct investment. It does so by providing innovation incentives, offering startup visas, and giving subsidies for sustainable business initiatives.

Starting a business in the Netherlands is one of the best decisions

Starting a Business in the Netherlands as a Foreigner

One of the major advantages of the Dutch system is that foreigners can fully own and operate companies without needing a local partner.

Key points for non-residents:

• No nationality restrictions for company ownership.
• Non-EU citizens may require a residence permit or self-employment visa.
• A Dutch visiting (physical) business address is required for KvK registration; a PO box alone is not sufficient.
• Dutch Chamber of Commerce (KvK) registration is required before commencing operations.

From 2024, a BV can be incorporated digitally via a civil-law notary, while sole proprietorship registration involves an online pre-registration followed by an in-person KvK appointment. English-language guidance and clear tax guidelines are widely available.

Legal Structures for Starting a Business in the Netherlands

Choosing the right legal structure is the first critical decision when starting a business in the Netherlands. Common options:

1. BV (Besloten Vennootschap): Private limited company, most popular for both small and large businesses.
2. NV (Naamloze Vennootschap): Public limited company, suitable for larger enterprises and stock listings.
3. Sole Proprietorship (Eenmanszaak): Ideal for starting a small business in the Netherlands with low setup costs.
4. Partnerships (VOF, CV, Maatschap): For businesses with multiple owners.
5. Branch Office: For foreign companies expanding into the Dutch market.

Tip: Foreign investors often choose a BV because it allows limited liability, straightforward incorporation, and flexibility in shareholding.

Choosing the right legal structure for Business in the Netherlands

Starting a Small Business in the Netherlands

For entrepreneurs considering starting a small business in the Netherlands, the country offers significant advantages:

• No minimum capital for sole proprietorships.
• Access to microfinance loans and SME subsidies.
• Simple online tax filing systems for small businesses.

Common small business sectors include:

• E-commerce and online services
• Hospitality and tourism
• Consultancy and creative industries
• Niche retail and speciality food businesses

These ventures can start with relatively low overhead while still benefiting from the Netherlands’ robust consumer market and trade network.

Best Business to Start in the Netherlands in 2025

The most suitable business to start in the Netherlands depends on a combination of personal expertise, market dynamics, and available investment capital. In 2025, the most promising sectors are the following:

• Technology & AI solutions: By utilizing the Netherlands' excellent digital infrastructure.
• Green technology and renewable energy: With the support of the government grants and EU funds.
• Logistics and supply chain management: By making use of the Port of Rotterdam and Schiphol Airport.
• Fintech and digital services: Due to the high demand for innovative financial solutions.
• Healthcare and biotech: Collaborating with the top-notch research facilities.

Foreign entrepreneurs often find success in industries that align with Dutch economic priorities, such as sustainability and innovation.

Doing Business in the Netherlands: Cultural and Legal Insights

The Dutch business culture is known for being direct, transparent, and consensus-driven. Understanding these cultural nuances is important when doing business in the Netherlands.

Key business culture points:

• Meetings are structured and punctual.
• Decisions are often made through consultation and agreement.
• English is widely spoken in the business community.

From a legal standpoint, contracts can be upheld, intellectual property rights are protected, and following the regulations of the EU is compulsory.

Understanding culture is important when doing business in the Netherlands

Corporate Income Tax in the Netherlands

The corporate income tax in the Netherlands applies to resident companies on worldwide income and to non-resident companies on Dutch-source income.

2025 Corporate Tax Rates (taxes may change annually):

• 19% on taxable profits up to €200,000.
• 25.8% on taxable profits above €200,000.

Additional benefits include:

• Innovation Box regime: Reduces tax on profits from innovative activities to 9%.
• Extensive double taxation treaties are used to avoid double taxation on cross-border income.

Foreign investors appreciate the Netherlands for its balanced approach: competitive corporate tax rates combined with strong compliance credibility.

VAT and Other Tax Obligations

Alongside the corporate income tax in the Netherlands, businesses must comply with VAT rules:

• 21% standard VAT rate.
• 9% reduced rate for certain goods and services.
• 0% rate for exports and intra-EU supplies.

Corporate income tax returns are filed annually, while VAT returns may be monthly, quarterly, or annual as assigned by the Dutch Tax and Customs Administration.

Step-by-Step Guide to Starting a Business in the Netherlands

1. Choose a legal structure (e.g., BV, NV, sole proprietorship).
2. Register with the Dutch Chamber of Commerce (KvK).
3. Open a Dutch business bank account.
4. Register for taxes with the Dutch Tax and Customs Administration.
5. Obtain necessary permits (sector-specific).
6. Set up accounting and bookkeeping systems.
7. Hire staff if required, following Dutch employment laws.

Start a business in the Netherlands in simple steps

Compliance and Reporting Requirements

All Dutch companies must:

• File annual financial statements with the KVK (Legal entities such as BVs, NVs and cooperatives must file annual financial statements with the KvK, whereas sole proprietorships (eenmanszaak) do not file annual accounts with the KvK).
• Maintain accurate accounting records.
• Comply with Dutch and EU tax laws.

Non-compliance can lead to penalties and reputational risks, making professional assistance essential.

Banking and Financial Setup

Opening a business bank account is strongly recommended for operations and compliance, but it is not a legal prerequisite for KvK registration. Most Dutch banks require:

• KvK registration extract.
• Proof of identity for all directors and shareholders.
• Business plan and projected transactions.

Foreign entrepreneurs may face additional due diligence checks.

How Offshore Company Services Help with Starting a Business in the Netherlands

Offshore Company Services specializes in assisting international clients with starting a business in the Netherlands, offering:

• Company formation for both residents and foreigners.
• Tax optimization strategies, including corporate income tax in the Netherlands.
• Support for starting a small business in the Netherlands or scaling to a BV/NV.
• Banking and compliance assistance.
• Guidance on industry-specific licensing.

Their expertise ensures that you meet all legal requirements while maximizing your operational efficiency.

Conclusion

For EU citizens, non-EU entrepreneurs, or corporate investors, starting a business in the Netherlands will be an exciting adventure in 2025. With its central location, attractive tax regime, and internationally respected business culture, the Netherlands offers a compelling platform for both startups and multinational corporations.

Whether you would like to start a small business in the Netherlands on your own, or manage complex cross-border structures as such, success lies in being properly informed, compliant and interacting with professional advice.