How to Benefit from Dutch Tax Incentives for R&D for Your Company

Updated on 19 September 2025

Intercompany Solutions has assisted entrepreneurs from all over the world with the establishment and growth of Dutch businesses. We have worked with a wide variety of entrepreneurs and companies, ranging from the incorporation of interesting small startups to assisting multinational corporations with the establishment of a business presence in the  Netherlands. This provides us with the necessary knowledge and expertise to help every imaginable entrepreneur achieve their goals. The Netherlands is a very welcoming country when it comes to foreigners and if you have a solid business idea, you can achieve substantial success here.

If you want to establish a company here, we can take care of the entire process for you in just a few business days. We can also do this entirely remotely for you, so you don’t have to travel all the way to the Netherlands to set up a company. Next to that, we can also aid you in many other ways, ranging from tax services and legal advice. If you would like to know more about how exactly we can help you, feel free to contact us with your questions anytime. We will always assist you and provide you with advice in the best way we can. 

The Dutch are considered to be highly focused on innovation in almost every sector

One of the main talents of the Dutch is their eagerness and prowess in the field of innovation. In almost every imaginable sector and industry, they always try to push things forward and upward, creating better and more efficient solutions and making sure everything is done in the best way possible. This has made the Netherlands a hub of unique and very successful companies, which often also work together to create interrelated solutions and products. As such, there are many ways in which you can innovate your own company and also ask for the (financial) help and backing to manage this. In this article, we will focus on research and development, what this means and how you can profit from various incentives and subsidies that can help your company grow more efficient and become more successful. 

What is research and development (R&D) and why do companies have this department?

Research and development, often called R&D in short, is the part of a company that focuses on creating new ideas, products, or ways of working. It’s basically the part of any company where innovation begins. The R&D department looks at how things can be made better, whether it’s improving existing products, inventing new ones, or finding more efficient ways to do things in general. R&D is important because it helps companies stay competitive in a fast-changing world. Without innovation, businesses can fall behind. Through research, though, companies can explore new technologies, study market needs, or test ideas. Development turns those ideas into real products, software, or services.

For example, a tech company might develop faster software, a food company could research healthier ingredients and a car manufacturer might invent a more energy-efficient engine, to name just a few examples. Having an R&D department shows that a company is investing in its future. It can lead to better products, lower costs, or even entirely new business opportunities. Whilst it does take time and money, the benefits can be big in the long run. Especially when the government, like in the Netherlands, supports R&D through tax breaks, incentives and grants.

Types of companies that can really benefit from an R&D department

An R&D department isn't just for high-tech companies or big corporations, even though many people seem to think that. Many types of businesses, large or small, can benefit from having a team that focuses on developing new ideas, improving services, or making operations more efficient. Whether you’re designing new software, finding better ways to package goods, or testing out new food recipes; an R&D department can help your company grow and stay ahead of the competition. Companies that invest in R&D often find smarter ways to work, attract more customers, and even get tax benefits. Especially in the Netherlands, where innovation is strongly supported. This applies to both high-tech startups and more traditional businesses. Below are some types of companies that can benefit from having an R&D department:

• Software development companies
• FinTech startups (financial technology)
• E-commerce platforms
• Healthcare or medical device companies
• Food and beverage producers
• Green energy or sustainability businesses
• Logistics and transport companies
• Manufacturing and production firms
• Smart agriculture and agri-tech companies
• Marketing or media companies developing new tools or platforms

These businesses often have something to improve, invent, or test, which makes having an R&D department a smart investment for long-term success.

Ways in which the Netherlands can aid you to propel R&D forward

The Dutch government strongly supports innovation and wants to help companies grow through R&D. One way they do this is by offering incentives and subsidies. These are forms of financial support that reduce the cost of doing R&D, making it more affordable and less risky for businesses to invest in new ideas. Incentives are often tax-related. For example, companies that develop new technologies or software can get tax discounts through programs like the WBSO and Innovation Box. These reduce payroll taxes or the amount of tax paid on profits from innovation.

Subsidies, on the other hand, are direct financial contributions from the government. If your R&D project qualifies, you may receive a grant to help cover development costs, equipment, or research hours. In many cases, you don’t even have to repay this money. So you basically get free money to improve your ways of doing business. This can help many entrepreneurs to grow and become more successful in the long run. These tools exist to encourage more innovation, attract international businesses, and help the Dutch economy stay competitive. Whether you’re a startup, a growing company or an already existing strong business, the Netherlands offers a strong environment to develop your ideas, with real support to back these up.

Overview of some well-known Dutch R&D tax incentives

Below we will outline some of the most well-known incentives, schemes, grants and subsidies. These are all used by companies to invest in growth and innovation, if they are applicable. There might be some local incentives too. If you are already based in the Netherlands, or have a registration address, you can inquire at the local municipality in which your company is based to find out whether they offer anything similar. 

The WBSO scheme (Research and Development tax credit)

The WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) is one of the most important tax incentives in the Netherlands to encourage R&D. It helps companies reduce the costs of developing new products, processes, or software by offering tax relief. How does it work? The WBSO gives companies a reduction on their payroll tax and social security contributions for employees who work on R&D projects. This means that for every hour an employee spends on qualifying research or development tasks, the company pays less tax. This lowers the overall cost of innovation.

The scheme is available to many types of companies, from startups to large businesses, as long as they carry out genuine R&D activities. These activities can include creating new technologies, improving existing products, or developing software that involves technical challenges. Applying for WBSO requires submitting a project plan to the Netherlands Enterprise Agency (RVO). The plan should explain the R&D work and why it is innovative. Once approved, the company can use the tax benefit for the approved period, which can be up to one year at a time, and can also be extended. The WBSO is especially valuable because it directly lowers the costs of innovation, making it easier and more affordable for companies to invest in new ideas. Many Dutch companies rely on this scheme to help stay competitive and grow through innovation.

The Innovation Box: paying less tax on profits from innovation

The Innovation Box is another powerful Dutch tax incentive designed to reward companies that earn profits from innovative work. While the WBSO helps reduce costs during the R&D phase, the Innovation Box offers a benefit after the innovation is finished, so essentially when it starts to make money. With the Innovation Box, companies pay a much lower tax rate on profits earned from certain types of intellectual property (IP). This can include things like patented products, software, or technologies developed through R&D. Normally, companies pay either 19% or 25.8% corporate income tax in the Netherlands. But under the Innovation Box, eligible profits can be taxed at a special low rate of just 9%.

To qualify, the innovation must be developed in-house and linked to R&D activities approved under the WBSO scheme. In many cases, the company must also own a patent or meet other technical criteria (like registered software or know-how). Getting access to the Innovation Box usually involves a discussion with the Dutch tax authorities (Belastingdienst). This is often done through a special agreement, which helps ensure the profits and IP meet the rules. For tech companies, startups, and other innovators, the Innovation Box can lead to big savings once their R&D efforts start generating income. It’s a great way to reward long-term investment in innovation and help companies reinvest in future growth.

Grants and subsidies for R&D projects in the Netherlands

Besides tax incentives like the WBSO and the Innovation Box, the Dutch government also offers grants and subsidies to support R&D. These are usually funds that do not need to be paid back, as long as the project meets the conditions. There are many different subsidy programs available, depending on your company’s size, sector and goals. Some are aimed at high-tech innovations, others at green technology, healthcare, or international cooperation. A well-known example is MIT (Mkb-Innovatiestimulering Regio en Topsectoren), which is a program that helps small and medium-sized companies start innovative projects, do research, or team up with others.

Another option is Horizon Europe, a large European program that funds innovation across the EU. Dutch companies can join in on these projects and receive financial support. Many grants support specific parts of the R&D process, like developing prototypes, testing, or scaling up. Some even help cover the cost of hiring technical staff or working with universities. Applying for a grant can take time and planning, though. You’ll usually need a clear project idea, a budget, and a strong explanation of how the project is innovative and useful to the outside world. The Dutch Netherlands Enterprise Agency (RVO) is a key point of contact and offers help with applications. For many businesses, combining grants with tax incentives creates a strong base for innovation, making it more affordable and less risky to develop new ideas.

Support for startups focused on innovation

There are also some specific incentives that are focused on startups. One of such programs is Techleap, which helps startups grow faster with access to mentoring, investors, and international opportunities. There’s also the Startup Box, a government initiative that combines useful tools and information in one place for new companies, especially those working in high-tech or R&D fields. If your startup is working on innovative products or software, you might also qualify for the WBSO scheme or grants mentioned earlier. Many of these incentives are designed with small and young businesses in mind, so the process is often simpler and more accessible.

For so-called scale-ups, which are fast-growing companies looking to expand, there are also programs focused on investment and export support. The Dutch government provides innovation loans and connects businesses with venture capital or angel investors who are interested in new technologies. In addition, the Netherlands has several innovation hubs and incubators where startups can work, learn, and collaborate. These spaces often offer funding, expert advice, and networking, all in one place. With all these tools and support systems, the Netherlands creates a friendly environment where innovative startups and scale-ups can grow, test ideas, and enter the global market with confidence.

How to apply for these incentives?

Applying for R&D incentives in the Netherlands doesn’t have to be complicated, but it does require some preparation. The most important first step is to identify which incentives fit your company and project. Each scheme, like the WBSO, Innovation Box, or an R&D grant, has its own rules, deadlines, and application methods. The good news is that most of the information is available in English and can be found on official websites such as the Netherlands Enterprise Agency (RVO), the Dutch Chamber of Commerce (Kamer van Koophandel) and the Dutch tax authorities (Belastingdienst).

In general, you’ll need to provide a clear project description. This includes what your R&D work involves, why it’s innovative, what challenges you're solving. You will also need to outline how the work will be carried out. Some incentives also require a cost estimate or a breakdown of hours your staff will spend on the R&D activities. While some applications can be done online with digital forms, others may require a short consultation with tax authorities or subsidy advisors. If you’re not sure where to start, many businesses choose to work with a local accountant, tax advisor, or legal expert who is familiar with the Dutch system. This can save you time and increase your chances of approval. You will need to do your research, prepare your documents, and ask for help if needed. With the right guidance, accessing Dutch R&D support is very achievable, even for newcomers. Of course, at Intercompany Solutions, we are always happy to assist you with such tasks.

Intercompany Solutions can assist you with the application for various subsidies and incentives

Applying for subsidies and tax incentives in the Netherlands can be challenging, especially if you're new to Dutch laws, language, or bureaucracy. That’s where we come in. We specialize in helping foreign entrepreneurs set up and grow their businesses in the Netherlands, including guiding them through the process of applying for R&D support, if you so desire. We start by analyzing your business and R&D plans to see which Dutch or EU incentives may apply to you. This could include tax relief under the WBSO scheme, the Innovation Box, or one of the many grant programs. Once we know what fits your company, we help you understand the legal conditions, such as eligibility criteria, deadlines, and required documentation.

From there, we support you with collecting all the necessary paperwork, including project descriptions, employee time planning, cost estimates, and supporting documents. We can also translate and structure your application in a way that fits Dutch government expectations. Depending on the type of subsidy or tax benefit, we may guide you through online application systems, or even help you prepare for discussions with Dutch authorities (like the RVO or tax authorities). We make sure you stay compliant, meet deadlines, and avoid common mistakes. With Intercompany Solutions as your partner, you’re not just getting help with forms, you’re getting a local partner who understands the full picture. We simplify the process, save you time, and increase your chances of success, so you can focus on what matters most: growing your business through innovation.

What other services can we offer you?

Next to helping you apply for various R&D incentives and subsidies, Intercompany Solutions has also assisted hundreds of foreign entrepreneurs from over 50 different nationalities with a wide variety of other services. Our clients range from small one-person startups to multinational corporations, and everything in between. Our processes are aimed at foreign entrepreneurs and, as such, we know the most practical ways to assist with your company registration. We can assist with the full package of company registration in the Netherlands:

• Company establishment in the Netherlands
• Application for VAT or EORI number
• Application for a EORI and article 23
• Startup assistance
• Accounting services
• Secretarial services
• Legal assistance
• Tax services
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services. 

Intercompany Solutions can help you establish a Dutch business and assist you in continually growing it as well

Since we have been active in this particular industry for many years, we know how to deal with all things related to Dutch businesses. From the entire establishment process to various extra services, that are specifically tailored to your needs as a foreign entrepreneur. If you want to expand your company’s presence to the Netherlands, we can offer you all you need to establish your business here and start your activities immediately. 

Next to that, we also have many years of experience in applying for all sorts of permits, grants, subsidies and incentives. Our experienced tax advisors know exactly how to assist you in all financial and tax related matters, specifically tailored to your company’s needs. If you would like to know whether you are eligible for any type of grant or incentive, please always feel free to contact us directly. We will then explore your opportunities and tell you exactly what you can do, to apply for what you need. We can also take care of the entire application process for you. Our team will gladly assist you in making your company grow even further.