The Most Notable Government Policies for Companies Established in the Netherlands You Will Need to Comply With as a Foreign Entrepreneur

If you want to establish a Dutch company as a foreigner, we strongly advise that you hire a professional who can take care of the registration process for you. It’s quite common for foreigners to want to try to achieve this on their own and then come across multiple pitfalls that might seriously delay the procedure, or even make it impossible to establish a company in the Netherlands. Keep in mind that Dutch laws and regulations might differ very much from the laws in your country of residence. So this means that what might apply in your home country doesn’t apply here at all.

Intercompany Solutions has assisted thousands of foreign entrepreneurs over the years with the establishment of Dutch companies, branch offices, and subsidiaries. As such, we are very well acquainted with the process and can help you establish your business smoothly and efficiently, in just a few business days. Next to that, we also offer some extra services that can help you start stronger and focus more on your core business.

If you would like to know more about our services, please take a look at our website or contact us directly for personal and professional advice regarding your specific situation.

Why choose the Netherlands for your company?

The Netherlands has long been a favorite destination for foreign entrepreneurs who want to expand their business into Europe, and specifically the European Union (EU), with its Single Market that allows you to trade goods and services freely between all member states. With its strong economy, excellent infrastructure and open attitude toward international trade, the country offers one of the most stable and welcoming environments for new business ventures. Next to that, the English language is widely and excellently spoken, the digital systems are efficient and innovative and the country’s location makes it a natural gateway to both the EU and the global market.

What makes the Netherlands especially appealing, though, is its supportive government policy regarding doing business in general. Setting up a company here is straightforward, thanks to a transparent legal system and the possibility of online registration through the Dutch Chamber of Commerce (Kamer van Koophandel, or KvK). The government also offers reliable information and practical tools through this website, which is a portal containing a lot of useful information designed specifically for international entrepreneurs. However, even in such a business-friendly climate, it’s important to understand the rules that apply to you. From taxes and labor laws to innovation incentives, these Dutch policies shape how your business will need to operate day to day. Therefore, this article highlights the most relevant government policies, giving you a clear overview of what to expect when establishing a company in the Netherlands.

1. Business structures and Dutch company registration

Before starting a company in the Netherlands, it’s useful to understand the main legal business structures that you can choose here. You can find a general overview on this website. The simplest form is the eenmanszaak (sole proprietorship), where one person owns and runs their business. It’s quick to set up and ideal for freelancers or small-scale entrepreneurs. Other common structures include the VOF (general partnership), CV (limited partnership), and NV (public limited liability company).

However, by far most foreign entrepreneurs choose the BV (Besloten Vennootschap), which is widely known as a private limited liability company. This implies that a Dutch BV offers limited liability, meaning your personal assets are protected if the business faces financial problems. This makes it a very stable and interesting choice for most ventures. It’s also flexible, because it’s suitable for both small startups and larger international operations. This is due to the fact that since 2012, the minimum capital requirement for a BV has been reduced to just €0.01, making it accessible to almost anyone. In essence, choosing the right structure depends on your business goals, liability needs, and tax situation. If you are unsure about the best fit for you, you can always contact one of our experts to advise you on the matter.

The Dutch Chamber of Commerce (KvK) registration process

Once you’ve chosen the right business structure, the next step is to register your company with the Dutch Chamber of Commerce (KvK). This is mandatory for all businesses operating in the Netherlands. Registration automatically links your company to the Dutch tax authorities (Belastingdienst), the organization that handles all your tax obligations. You can register online and then schedule an appointment at a KvK office to verify your identity and submit any required documents. Foreign entrepreneurs will need to provide proof of a Dutch business address, which can be a physical office, a coworking space, or a virtual office. This is because official company mail cannot be sent to a foreign address.

Opening a Dutch business bank account is also highly recommended to manage payments and VAT transactions efficiently. If you plan to live in the Netherlands while running your business, you’ll also need a BSN (Citizen Service Number). Non-EU entrepreneurs may have to apply for a residence or self-employment visa first. For this, guidance is available through the Immigration and Naturalization Service (IND) and the general information site for foreign entrepreneurs. Once your company is registered, you’ll receive your KvK number, which is basically your company’s official ID, and your VAT number from the Dutch tax authorities shortly after. With these in hand, you’re legally ready to operate and start building your Dutch business.

2. Taxes and the Dutch tax system

After you have registered your Dutch business, you will need to take into account that you will need to pay taxes to the country. Thankfully for you, the Netherlands has a very transparent and well-organized tax system, which is very well-designed to support both local and international businesses. If you run a company from here, you need to know that several types of taxes may apply, depending on your structure, size, and business activities. Below you’ll find a short overview of the main taxes foreign entrepreneurs should be aware of:

• Corporate Income Tax (Vennootschapsbelasting)

This applies to companies such as BVs and NVs. The rate is 19% for profits up to €200,000 and 25.8% for profits above that amount. Companies must file tax returns annually via the Dutch Chamber of Commerce portal.

• Value Added Tax (BTW)

This is charged on most goods and services. The standard rate is 21%, whilst there is also a reduced rate of 9% or even a 0% rate for specific sectors. You must file periodic VAT returns, even for intra-EU trade, using your company’s VAT number.

• Income Tax (Inkomstenbelasting)

Sole proprietors and partners in a VOF pay income tax on business profits. The system is progressive, and various deductions (like self-employment allowance) may apply. If you own a BV, you also need to pay yourself a mandatory salary and this will also be taxed.

• Dividend Tax (Dividendbelasting)

If your company distributes profits to shareholders, a 15% withholding tax generally applies. In many cases, tax treaties prevent double taxation, though. And there is also something called the ‘participation exemption’, which might exempt you from paying dividend taxes.

• Payroll Taxes and Social Security Contributions

If you are planning on hiring personnel, you will also have to pay multiple taxes and contributions for them. Generally speaking, employers must withhold wage tax and social security payments for employees through monthly filings to the Dutch tax authorities.

Filing obligations and deadlines

Please note that once your company is registered, it’s important to keep up with the Dutch filing requirements. Most tax returns are submitted digitally through the Dutch tax authorities portal, usually with the help of a bookkeeper or accountant. Companies generally file corporate income tax returns once a year, usually within five months after the end of the financial year. If you somehow cannot make it, extensions can be requested if you need more time. VAT returns are normally filed quarterly, although larger businesses may be required to report monthly. Each return must include the VAT charged to clients as well as the VAT you’ve paid on business purchases. 

Furthermore, note that any possible difference between paid and received VAT must be paid to the tax authority before the deadline. If you employ staff, you must also file monthly payroll tax returns, detailing things like wages, deductions and contributions. Missing a filing or payment can lead to fines or interest charges, which the Dutch tax authorities enforce strictly. In order to stay compliant, many national and foreign entrepreneurs use Dutch accounting software or hire a local bookkeeper who knows the deadlines and can submit returns on your behalf.

Further tax rulings, 30% ruling and tax treaties

As we mentioned before, the Dutch tax system is quite well-known for its clarity and flexibility, especially for international companies. One unique feature is the possibility of obtaining a tax ruling. This is basically a written agreement with the Dutch tax authorities that confirms how specific transactions or structures will be taxed. These rulings help foreign investors gain certainty and also avoid unexpected surprises. Another well-known policy is the 30% ruling, which is specifically designed for highly skilled migrants working in the Netherlands. 

If approved, it allows eligible employees to receive 30% of their salary tax-free for up to five years. This benefit helps offset relocation costs and makes it easier for foreign talent to settle in the Netherlands. You can apply for this ruling through the Dutch tax authorities once your employment here begins. The Netherlands also maintains tax treaties with many countries to prevent double taxation. These agreements define which country has the right to tax certain income types, reducing the overall tax burden for international entrepreneurs. An overview of treaties is available on this website.

3. Employment and labor law

When you want to hire staff in the Netherlands, it’s very important to understand the basics of Dutch employment law. For starters, every employee must have a written work contract, which can be either temporary or permanent. Legally sound contracts outline information such as salary, working hours, notice periods and other essential terms. Temporary contracts can usually be renewed a few times, generally three times, before becoming permanent by law. Next to that, Dutch salaries must always meet the national minimum wage standards, which are updated twice a year. Many industries also follow Collective Labor Agreements (CAOs) that set additional terms, such as pay scales, overtime, or leave rules. Always check if a CAO applies to your sector before finalizing contracts, since you are legally bound to comply with it.

Furthermore, all Dutch employees are entitled to at least four times their weekly working hours in paid vacation days each year, plus an 8% holiday allowance on top of their gross annual salary. Additionally, keep in mind that as an employer, you must also continue paying wages during sick leave, typically for up to two years. Also, pension contributions are often required through industry-specific schemes. Understanding these basics helps you build trust with employees and stay compliant with Dutch labor standards from day one, so make sure you know about these things before you even try to hire anyone. Non-compliance can bring you into serious trouble. 

Payroll, taxes, and working with freelancers (ZZP’ers)

So, once you hire employees, you’ll need to manage payroll and fulfill several obligations as an employer. As we already mentioned above, you must withhold wage tax and social security contributions from salaries and report these monthly to the Dutch tax authorities. Employers also contribute to national insurance funds that cover things like unemployment, disability and healthcare. In addition, you’ll need to register with the Employee Insurance Agency (UWV), which manages employee benefits such as unemployment and sickness support. Keeping your payroll accurate and up to date is essential, since even the smallest of errors can lead to severe penalties or complications for you and your staff. Therefore, many companies use local payroll providers or accounting software that integrates with Dutch tax systems for convenience and compliance.

Interestingly, not all work relationships count as employment, though. The Netherlands has a large community of freelancers, known as ‘ZZP’ers’ (‘zelfstandigen zonder personeel’, which translates to being self-employed without personnel). When hiring freelancers, there are fewer obligations, such as not having to pay payroll taxes or social contributions. But you must ensure they truly operate independently, especially since the Dutch government is actively pursuing false employment and fining both freelancers and employers. The government provides model contracts that define this relationship and help prevent false employment situations. Notably, freelancers handle their own taxes and insurance, but you still need clear agreements on factors such as rates, deliverables and deadlines. Working with ZZP’ers can be flexible and cost-effective, as long as the collaboration stays transparent and follows Dutch legal guidelines.

4. Visas and immigration policies

Foreign entrepreneurs who want to live and work in the Netherlands can apply for several types of residence permits, depending on their personal situation. For example, the Startup Visa allows innovative entrepreneurs to launch a new business with the support of a recognized facilitator. Next to that, the Self-Employed Visa suits freelancers and business owners who can show that their work benefits the Dutch economy. For employers hiring international professionals, the Highly Skilled Migrant Visa offers a faster route for non-EU talent to live and work in the Netherlands. And then there’s also the EU Blue Card, which is aimed at highly educated employees with a valid work contract and a minimum salary requirement. Each option has its own conditions, but all share one goal: attracting talent and entrepreneurship that contribute to the Dutch economy and innovation climate. If you would like to stay in the Netherlands for a longer period of time, you should definitely check which visa would suit your needs best. 

The role of the IND (Immigration and Naturalization Service)

The Immigration and Naturalization Service (IND) is the main authority responsible for processing visa and residence permit applications in the Netherlands. They evaluate things like whether applicants meet the legal and financial requirements for each visa type and ensure that all conditions are in line with Dutch and EU regulations. For entrepreneurs, the IND works closely with other organizations such as the Netherlands Enterprise Agency (RVO) to assess the innovative value of new businesses, or the economic contribution of self-employed applicants. Employers sponsoring highly skilled migrants must also be registered with the IND as recognized sponsors, which then simplifies and speeds up applications. Once your permit is approved, the IND handles all regarding residence cards, extensions, and renewals. Their website provides up-to-date information, forms and timelines for every visa category.

Application process, timelines and startup support

Applying for a Dutch business or work visa is usually a straightforward process, but it’s important to prepare all documents carefully beforehand. Most applications start online through the IND website, where you submit forms, a valid form of identification and proof of income or your business plans. Depending on the visa type, you may also need a business plan assessment from the RVO. The actual processing times vary but generally range from two to three months. For highly skilled migrants, the process can be faster if their employer is a recognized sponsor. Startup Visa applicants must show that their project is innovative and supported by an approved facilitator, which is essentially a mentor organization helping them establish and grow their business. The Dutch government actively supports international entrepreneurship through programs like TechLeap.nl and RVO grants. These initiatives encourage innovation, sustainability, and digitalization, which are key elements of the Netherlands’ long-term economic policy. Together, they make the Netherlands one of Europe’s most open and forward-thinking destinations for global talent.

5. Innovation and sustainability policies in the Netherlands

The Netherlands is internationally recognized for its hands-on approach towards innovation and sustainability. The government actively promotes a circular economy, where materials are reused, waste is reduced and resources stay in use for as long as possible. Current hot topics such as green energy, sustainable agriculture and smart transport are central to this vision, which is also heavily supported by national and EU-level initiatives. Digitalization is another key pillar. The Netherlands consistently ranks among Europe’s top countries for digital infrastructure, broadband access and tech-readiness. This strong foundation makes it an ideal base for innovative and sustainable startups and tech-driven companies. From artificial intelligence and clean tech to fintech and logistics, innovation in the Netherlands thrives through collaboration between businesses, universities, and research institutes. 

By combining sustainability with technology, the Dutch government aims to create long-term economic growth that also benefits society and the environment. This is actually a vision that continues to attract forward-looking entrepreneurs from around the world. To encourage innovation, the Dutch government offers a wide range of funding schemes, tax advantages, and grants for entrepreneurs. One of the most popular is the WBSO (Research and Development Tax Credit), which reduces wage tax and social security contributions for employees involved in R&D activities. It’s a simple and still very effective way to make innovation more affordable for startups as well as established companies.

Funding, tax incentives and RVO Support

Another useful program is the MIT Scheme (MKB Innovatiestimulering Regio en Topsectoren), which is aimed at supporting small and medium-sized enterprises (SMEs) that collaborate with knowledge institutions or other businesses, on innovative projects. For companies generating income from intellectual property, the Innovation Box offers a lower corporate tax rate on profits derived from patented or innovative assets. In addition to tax reliefs, there are various subsidies and funding programs available through the RVO. The RVO basically acts as the central hub for information on government support, sustainability incentives and international collaboration opportunities. Together, these initiatives show how strongly the Netherlands invests in a future built on innovation, green growth and technology. For foreign entrepreneurs, this means having access to a supportive ecosystem that not only rewards creativity but also helps turn ideas into sustainable business success.

6. Compliance, privacy and certain specific legal obligations

You should always keep in mind that running a business in the Netherlands also means that you will need to follow strict rules concerning topics such as privacy and financial integrity. For example, the General Data Protection Regulation (GDPR), which is known locally as the ‘AVG’ (Algemene Verordening Gegevensbescherming), requires companies to handle personal data carefully and transparently. This involves requirements such as that you must inform clients and employees about how their data is collected, stored and used. In most cases, this includes having a clear privacy policy and, if applicable, appointing a data protection officer. More details are available at the Dutch Data Protection Authority (Autoriteit Persoonsgegevens).

Another important key regulation that you will have to become acquainted with is the ‘WWFT’ (Wet ter voorkoming van witwassen en financieren van terrorisme), which translates to the Dutch Anti-Money Laundering and Counter-Terrorist Financing Act. This law applies to organizations such as financial institutions, accountants, lawyers and certain service providers, but other companies may also have due diligence obligations in this regard. The act requires businesses to verify clients’ identities and report any suspicious transactions to the Dutch Financial Intelligence Unit (FIU-Nederland). Both the GDPR and WWFT mainly aim to build trust and protect the integrity of Dutch commerce. Compliance may seem complex at first, but many business advisors and online tools can help ensure your company meets all legal requirements while also maintaining strong client relationships.

Chamber of Commerce obligations and financial reporting

Next to the specific obligations mentioned above, there are also some general obligations that are related to registering a Dutch business in general. Once your company is registered with the KvK, you’ll have several ongoing obligations. For example, every company must keep its information up to date, including any changes in directors, shareholders, or business activities. Most companies must also register their Ultimate Beneficial Owners (UBOs) in the UBO register. These are the individuals who ultimately control the company. This promotes transparency and helps prevent financial misuse. 

Next to that, all Dutch companies are required to prepare annual financial statements and file them with the KvK. The level of detail depends on the company’s size and form. Small businesses can often submit simplified accounts, while larger firms may need a full audit by an external accountant. Deadlines are strict, usually within 12 months after the end of the financial year, and late filing can result in high fines or even director liability. Keeping your administration accurate and timely ensures compliance and strengthens your company’s reputation. Many businesses use Dutch accounting software or hire a local accountant to manage these tasks efficiently.

Short summary for foreign entrepreneurs wanting to start a Dutch business

Starting and running a business in the Netherlands offers countless advantages for foreign entrepreneurs. From a strong economy and global trade connections to a transparent legal system and supportive government policies. The Dutch approach combines efficiency with openness, making it one of Europe’s most accessible places to build an international company. However, it’s important to understand what’s involved in terms of laws and regulations. From choosing the right business structure and registering with the Chamber of Commerce (KvK) to handling taxes, employment rules, and data protection, each step requires careful attention. 

The good news is that Dutch systems are highly digital and straightforward once you know where to start. Government resources such as Business.gov.nl, the Belastingdienst, and the Netherlands Enterprise Agency (RVO)  provide clear guidance in English for every stage of your business journey. Still, setting up abroad can feel overwhelming, and that’s where expert local support makes a difference. Whether it’s arranging company formation, managing compliance, or applying for tax rulings, professional assistance ensures everything is handled correctly and efficiently. Our team specializes in helping international entrepreneurs settle into the Dutch market with confidence. From your first registration to full operational setup, we make sure your business meets every legal and administrative requirement, so you can focus on growing your company in one of Europe’s most innovative and business-friendly environments.

The services that we can offer you

Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. 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, either ourselves or via trusted and professional partners we work closely with:

• Company establishment in the Netherlands
• Application for a VAT or EORI number
• Application for foreign VAT numbers
• Startup assistance
• Accounting services
• Administrative services
• Secretarial services
• Legal assistance
• Payroll administration
• Tax services
• OSS returns
• Intra-Community transactions declarations (ICP)
• Acquiring an Article 23 license
• Obtaining E-herkenning for your company
• Acquiring or closing G-accounts
• Transfer of shares
• Dutch company closures
• General business advice

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

Intercompany Solutions is your trusted partner in Dutch business establishment

Would you like to profit from the healthy and stable business climate that Holland has to offer? Or maybe you would like to expand your business internationally and prefer a country that has direct access to the EU as well as the entire world? Then the Netherlands is definitely a great place to consider. We will gladly help you sort out everything you need from A to Z. Intercompany Solutions offers complete business establishment packages that are professionally tailored to your specific needs, so you can start doing business in just a few working days. Please feel free to contact us with any questions you might have, and we will happily answer these for you. Our team of specialists can help you with various needs; just give us a call, and we will help you along the way.