Quick answer
Most freelancers in the Netherlands start as a sole proprietorship (eenmanszaak): no capital, fast KVK registration, profit taxed at 35.75% to 49.50% after entrepreneur deductions. A private limited company (BV) needs only EUR 0.01 of capital and limits your liability. It pays 19% or 25.8% corporate tax, but you must pay yourself a salary of about EUR 58,000.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my business setup →You want to invoice clients from the Netherlands, or you already do and wonder whether a BV would pay off. The choice affects your tax, your liability and whether you can keep running things while travelling. After reading, you will know the Dutch legal forms that matter in 2026 and which one fits what you do.
Netherlands legal forms of business in 2026: the key figures
| Item | Rule (2026) |
|---|---|
| Sole proprietorship (eenmanszaak) | No capital, unlimited personal liability, profit in Box 1 at 35.75%–49.50% |
| General partnership (VOF) | Two or more partners, jointly and fully liable, each taxed in Box 1 |
| Private limited company (BV) | Minimum capital EUR 0.01; notarial deed required; 1 shareholder-director is enough |
| Public limited company (NV) | Minimum capital EUR 45,000; notarial deed |
| KVK registration fee | About EUR 82 one-off |
| Corporate income tax | 19% up to EUR 200,000 of profit; 25.8% above |
| Director-shareholder salary (gebruikelijk loon) | At least about EUR 58,000 a year |
| Dividends from your BV | Box 2: 24.5% up to EUR 68,843, 31% above |
Is this guide for you?
Read on if you…
- are moving to the Netherlands as a freelancer, consultant or founder and need to pick a legal form;
- already trade as an eenmanszaak and want to know when a BV starts to pay off;
- own a company abroad and plan to live in the Netherlands while running it.
Probably not your case if you…
- are an employee on Dutch payroll with no side business;
- are raising venture capital with a holding structure that lawyers will design anyway.
What are the legal forms of business in the Netherlands?
Dutch law offers forms without legal personality – where you and the business are the same person for liability – and forms with legal personality, which are separate entities.
Comparison matrix
| Form | Liability | Minimum capital | Setup cost and time | Tax | Can a non-resident run it remotely? |
|---|---|---|---|---|---|
| Eenmanszaak (sole proprietorship) | Unlimited, personal | None | KVK fee only; same day to a week | Box 1, 35.75%–49.50%, with entrepreneur deductions | Only with a Dutch business address; profit taxed in the Netherlands only via a Dutch PE |
| VOF (general partnership) | Unlimited, joint and several | None | KVK fee plus partnership agreement; about a week | Each partner in Box 1 | Same as eenmanszaak; partners abroad often trigger tax in two countries |
| CV (limited partnership) | Limited for silent partners, unlimited for managing partners | None | KVK fee plus agreement | Box 1 for partners (or corporate tax in some cases) | Rarely used by freelancers |
| BV (private limited company) | Limited to the company's assets (director liability for mismanagement) | EUR 0.01 | Notary about EUR 500–1,500 plus KVK fee; 1–2 weeks | Corporate tax 19%/25.8%, then Box 2 on dividends | Yes, legally; but Dutch corporate residence and management rules apply |
| NV (public limited company) | Limited | EUR 45,000 | Notary and higher running costs; weeks | Same as BV | Yes; mainly for large or listed companies |
| Foundation (stichting) / cooperative | Limited | None | Notarial deed | Corporate tax if it runs a business | Niche use only |
Most freelancers and solo founders choose between two: the eenmanszaak and the BV.
Eenmanszaak or BV: which pays less tax?
The eenmanszaak: simple and often cheaper
An eenmanszaak is simply you, registered as a business at the KVK (Chamber of Commerce). You get a KVK number and a VAT number. It costs only the registration fee and takes a day.
Profit is taxed in Box 1. If you meet the 1,225-hours criterion, you get the self-employed deduction (EUR 1,200 in 2026) and the 12.70% SME profit exemption. Details are in personal tax deductions and benefits in the Netherlands.
Here's the catch: liability. Your house and savings answer for business debts. Good professional liability insurance covers much of that risk for consultants.
The BV: limited liability, more admin
A BV is a separate company. It pays corporate income tax on profit: 19% on the first EUR 200,000 and 25.8% above. When the BV pays you a dividend, you pay Box 2 tax of 24.5% or 31%.
If you work in your own BV, you must pay yourself a customary salary – at least about EUR 58,000, or more if your role usually pays more. That salary is taxed in Box 1 like any job.
Running costs are higher: annual accounts filed with the KVK, a corporate tax return, payroll administration and an accountant. Budget EUR 2,000 to EUR 5,000 a year.
Honestly? For most freelancers, a BV only starts to pay off at profits well above EUR 100,000, and mainly if you keep profit in the company instead of paying it out.
What about the Wet DBA?
The Netherlands resumed enforcement against false self-employment in 2025. If you work for one client, under their direction, for a long time, that client risks being treated as your employer – whatever your legal form. A BV does not fix this.
Can you run a Dutch company from abroad?
Yes, legally. A Dutch BV can have a director living anywhere. But tax follows where the company is really managed.
Management and control
A company incorporated under Dutch law is deemed Dutch tax resident for corporate tax. But under most tax treaties, if a director makes key decisions from another country, that country can claim the company as resident through the place of effective management tie-breaker. You can end up with two countries taxing the same profit.
Permanent establishment risk
The reverse also applies. If you live in the Netherlands and run a foreign company from your Dutch home, that company may have a permanent establishment (PE) – a taxable presence – in the Netherlands, or may become Dutch resident outright. The Belastingdienst then taxes the profit here at 19% or 25.8%.
Non-EU nationals also need a residence permit that allows self-employment before trading. The IND handles these; US and Japanese entrepreneurs have special treaty routes (DAFT and DAJT).
If you are comparing countries for your company, Heavnn's business setup service can help you choose. For neighbours, see legal forms of business in Germany and legal forms of business in Austria.
How do you set up a business in the Netherlands, step by step?
- Check your right to work as self-employed – automatic for EU, EEA and Swiss citizens; otherwise get an IND permit.
- Pick the form: eenmanszaak for most starters, BV once profit and risk are higher.
- For a BV, sign the deed at a notary, who files it with the KVK.
- Register with the KVK at an appointment, with your ID and a Dutch business address. You receive your KVK number; the Belastingdienst sends your VAT number.
- Consider the small business scheme (KOR) – a VAT exemption if your turnover stays at or below EUR 20,000 a year.
- Register in the UBO register if you set up a BV, and keep records for seven years.
Example – Sofia, UX consultant in Amsterdam
Sofia expects EUR 120,000 profit in 2026. As an eenmanszaak, deductions bring taxable profit to about EUR 103,700 and Box 1 tax to about EUR 41,270, before tax credits. Through a BV she takes a EUR 58,000 salary (about EUR 21,080 tax). The BV pays EUR 11,780 corporate tax on EUR 62,000 profit. Paying out the rest as dividend adds EUR 12,300, for EUR 45,160 in total. She stays an eenmanszaak for now and revisits once profit passes EUR 150,000.
Sofia's choice saved her about EUR 3,900 this year. Yours could go either way.
Get your Dutch business structure checked against your real profit and plans.
Check my business setup →Common mistakes (and what they cost)
- Setting up a BV too early → you pay notary, accounting and payroll costs of several thousand euros a year, and often more tax than as an eenmanszaak.
- Paying yourself less than the customary salary → the Belastingdienst corrects the salary upwards and charges payroll tax plus penalties.
- Running a Dutch BV while living abroad → the other country claims the company's profits through the place of effective management, and you face double tax.
- Running a foreign company from your Dutch home → it becomes Dutch resident or has a Dutch PE, and profit is taxed at 19% or 25.8% here.
- Missing the 1,225-hour log as an eenmanszaak → you lose the self-employed deduction and start-up deduction.
Frequently asked questions
What is the most common legal form for freelancers in the Netherlands?
The eenmanszaak, or sole proprietorship. You register with the KVK, receive a KVK number and VAT number, and can start invoicing within days. There is no minimum capital. Profit is taxed in Box 1 at 35.75% to 49.50%, after the self-employed deduction and the 12.70% SME profit exemption if you meet the 1,225-hour criterion.
How much capital do I need to start a BV in the Netherlands?
Only EUR 0.01. The old EUR 18,000 minimum was abolished in 2012. You still need a notarial deed of incorporation, which usually costs a few hundred to about EUR 1,500, plus the KVK registration fee. Banks may ask for more capital in practice before opening a business account.
When does a BV become cheaper than an eenmanszaak?
Usually when profit is well above EUR 100,000 and you keep part of it in the company. The BV pays 19% corporate tax on the first EUR 200,000, but you must take a customary salary of about EUR 58,000 and pay Box 2 tax on dividends. Running costs are also higher, so run the numbers on your own figures first.
Can a non-resident set up a Dutch BV?
Yes. Anyone can incorporate a BV through a Dutch notary, and the director can live abroad. A Dutch-incorporated BV is deemed Dutch resident for corporate tax. But if you run it from another country, that country may also claim it under a tax treaty, which can lead to double taxation. Get advice before you rely on it.
Do I need a Dutch address to register a business?
Yes. The KVK requires a business address in the Netherlands for registration. Many freelancers use their home address. A mail-forwarding address alone is often not accepted for an eenmanszaak. For a BV, a registered office address in the Netherlands is required in the articles of association.
Related guides
- Business expenses in the Netherlands
- Personal tax deductions and benefits in the Netherlands
- Tax incentives for expats and digital nomads in the Netherlands
- Netherlands tax landscape overview
- Legal forms of business in Germany
- Legal forms of business in Austria
- All country tax guides
Sources
- KVK – Netherlands Chamber of Commerce
- Business.gov.nl – Legal forms and registering a business
- Belastingdienst – Dutch Tax and Customs Administration
- Dutch Civil Code Book 2 and Corporate Income Tax Act 1969 – wetten.overheid.nl
- IND – Self-employed residence permits
- OECD – Model Tax Convention
This guide is general information, not personalised tax advice. See how we research and review.
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