Starting a business in the NetherlandsFind out about the legal requirements to starting a business in the Netherlands
Interested in starting a business in the Netherlands? When starting a business in the Netherlands, a few (legal) requirements have to be met. Broadstreet is pleased to provide a guide explaining how to start a business in the Netherlands as a foreigner.
Residence and work permit
Before you are able to start your own business in the Netherlands, you need to fulfill the conditions to be allowed to stay and work in the Netherlands. EU/EEA/Swiss citizens will receive the same benefits as Dutch citizens and won’t need to obtain a residence permit or work permit in the Netherlands.
Non-EU/EEA/Swiss citizens will be required to follow the regular Dutch immigration procedure to obtain a residence permit and work permit. However, these citizens can also apply for a startup visa, which is a one year residence permit for entrepreneurs that makes it easier for international startups to create their roots in the Netherlands. American citizens can apply for a residence permit through the DAFT.
Select a legal form of business
There are various legal forms in the Netherlands. The most important difference between various legal forms is regarding the liability in case the business would be in debt, but also regarding the payment of taxes.
The most common legal business form is a BV. However, most entrepreneurs and self-employed individuals choose to register as a one-man business, also known as a eenmanszaak.
Register with the Dutch Chamber of Commerce and Dutch Tax Administration
After deciding on the right legal business entity and a trade name for your new business, you need to register your new business with the Dutch Chamber of Commerce. Broadstreet is happy to help you with this registration process.
The Dutch Commercial Register will automatically pass on your details to the Dutch Tax Customs Administration. Therefore there is no need to register for both.
Register with the Belastingdienst (Dutch tax office)
The Dutch Chamber of Commerce will pass on your details and registration to the Dutch tax office, so no need to register for both. It is recommended to register rather sooner than later, as you can then claim VAT deductions on the investments made to start up your business.
Types of taxes
When having a business in the Netherlands, some or all of the following taxes have to be paid – depending on the type of legal business form or employment:
- BTW (VAT)
- Income tax
- Payroll tax, which only needs to be paid if you have employees
- Corporation tax, only applicable if you have an incorporated business.
Tax benefits for new businesses
There are several tax benefits available for entrepreneurs, known as ondernemersaftrek or ‘entrepreneurs’ deduction’. These are available in the first year or entrepreneurship. Some of the tax benefits are:
- Self-employed deduction, known as zelfstandigenaftrek
- Starters deducation or allowance, known as startersaftrek
- SME profit exemption, known as MKB-winstvrijstelling, which allows you to deduct a given percentage of your profits
Get in touch with Broadstreet to see if you meet the requirements for these tax benefits and how to apply for these benefits.
Have Broadstreet help you start your new business in the Netherlands
Our tax advisors are here to inform you about the various business entities and types of taxes that need to be paid. Broadstreet is able to help register and prepare administration for both a sole trader as any other legal business form.