Company Formations in the Netherlands - Interesting facts about and general conditions
The Netherlands is part of the Benelux Countries, with Germany as a neighboring country. A good labor market has led to a large community of ex-pats, and the tax framework in the Netherlands is competitive compared to other countries in Central Europe. Foreigners willing to relocate to the Netherlands can enjoy a tax-free deduction of up to 30% of their income. This is, of course, not comparable with Cyprus, Ireland, or Malta, but given the proximity to Germany, it is something to think about.
Furthermore, if living in a hot spot is not required, one can enjoy reasonable living costs and low housing costs. Hence, numerous international companies are already doing business in and from the Netherlands. More and more firms and entrepreneurs are aware of the benefits of company formations in the Netherlands and set up subsidiaries and branches there.
After years of turmoil from 2008 until 2015, the banking sector fully recovered, and newly formed companies could obtain bank accounts online or at local banks.
Our experienced and highly qualified international tax and legal advisors will review your company structure, existing management, and mandate contracts. We also offer a review of your contractual arrangements at home and abroad. In addition, our tax and accounting department will be pleased to take care of your bookkeeping and tax returns.
Why not work with us? We offer company formations in the Netherlands at a fixed price of 1.680,00 € net. Enjoy our fast, reliable, and competent approach in your native language (German, English, French, Italian, Spanish, Czech, Slovak, and Greek).
Ideal Tax Framework for Holding Companies and Businesses
The Netherlands was one of the six original member states that established the European Economic Community in 1958. Since then, it abolished its former “offshore” regulations. Thus, Dutch legislation today fulfills all relevant EU standards, EU regulations, OECD standards, the FATF standards, and the FSF standards.
Dutch companies are recognized throughout the European Union as EU companies with an extensive Network of Tax Treaties. This circumstance is used mainly by holding companies. Nowadays, the Netherlands has one of the most favorable tax regimes and competes within the EU with Cyprus, Ireland, Malta, Luxembourg, and the UK as a non-EU jurisdiction.
Why not speak to us about the advantages of company formations in the Netherlands or a holding structure there?
What you need to consider
A long-term stay in a country for more than 183 days will usually (and automatically lead to an unlimited tax liability for your worldwide income. Some countries go even further and already assign this tax liability if you can permanently use your apartment (this can even be the room in your parents’ house or a regularly visited hotel), which you can access with your keys – known as “Schlüsselgewalt” in German-speaking countries. This rule establishes or maintains an unlimited Tax liability for your worldwide income. If this subject interests you, you may learn more about it on our dedicated website for Taxation.
However, a tax residency in the Netherlands is granted to non-domiciliaries if they stay in the country for at least 183 days each calendar year. This fact limits your ability to engage in extended travel.
Especially for Digital Nomads, the Netherlands is a fantastic place to stay, creating a safe environment within the EU and short distances to the continent. But leaving all doors open for up to six months of travel. One can’t stay in any other (EU-) country for more than 183 days, as this would trigger a tax residency there. There are some exceptions we will discuss in a meeting.
Company formations in the Netherlands is a straightforward process. The real challenge lies in establishing an unassailable tax residence for both the company and its founder. Relocation may sound simple, but it is by no means as easy as moving to a new country. German-speaking countries in particular are familiar with the Taxation of hidden reserves and exit taxation.
Once you have overcome these problem areas, the next hurdle awaits you: opening a bank account. You probably cannot imagine how many founders in the Netherlands, Cyprus, Malta, and Ireland are stuck with a useless company without a bank account. Please don’t listen to rumors; instead, contact us directly. We will tell you straight up whether it can work for you or not. That’s a promise.
If you have plans for company formations in the Netherlands, be sure to speak with us first to avoid costly mistakes. We can help you determine if a relocation is a good fit. Our Tax Experts and corporate finance experts at TAXEDO LLP will find a sophisticated solution.
TOP Jurisdiction for EU Residence in Central Europe
The Netherlands, however, offers ideal conditions for a tax residence. To obtain tax residence, one must stay in Malta for more than 183 days. With close links to other European countries, excellent flight connections, and travel times of approximately two hours to the center of Europe, this is an ideal location for conducting business of any kind.
Of course, you cannot stay in any other country for more than 183 days, which would trigger an unlimited tax liability there. This concept is, therefore, ideal for everyone who can live and work flexibly (e.g., digital nomads). If you need more flexibility due to a busy travel schedule, we strongly recommend Cyprus as an alternative. If you expect smaller turnover and profits, we recommend Czechia.
You can rely on well-founded and legally sound advice if you come to us. Together, we will find your ideal life concept.
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