Establishment of a holding company in the Netherlands
Advantages of Dutch Holdings
In addition to the classic locations for holding companies such as Luxembourg, the United Kingdom, and Switzerland and the newer holding locations in Cyprus and Malta, the Netherlands also has a lot to offer as a holding location.
Attractive taxation of interest, dividends, and royalties has given the Netherlands the reputation of a secret tax haven within the EU. In addition, holding companies and multinational corporations continue to have the opportunity to enter into discreet tax agreements with the Dutch tax authority that are subject to confidentiality. The right-wing liberal government continued to rely on international corporations, which paid just over a billion euros in taxes for their presence in the Netherlands (as of 2012). However, there were hardly any official branches with employees.
During the financial crisis of 2008/2009, this was reason enough for the USA to put the Netherlands on the blacklist of tax havens. However, after a successful intervention by a delegation from The Hague, US President Obama removed the country from the list again. For years, dubious constructs such as the “Double Irish – Dutch Sandwich” were used by multinational corporations, as claimed in the press. And this is in complete accordance with national and international tax legislation. Incidentally, similar models also existed for Luxembourg and Switzerland.
Today, attractive structuring options still arise through group taxation for medium-sized companies with an international focus. Just call or email—we will be happy to advise you.
No more legal warnings
If limited companies are involved, warnings are often not even issued because conducting the procedure on-site in Ireland (Malta or Cyprus) would be too complicated, and a lawyer licensed to practice in Irish courts would have to act. In addition, even if the counterparty wins, these procedural costs usually have to be borne by the party leading the proceedings, so a warning would not bring any financial advantage. There would also be the problem that any legal title that may be disputed would not be enforceable because the limited company’s assets are insufficient.
Please speak to us for further details.
Ideal Tax Framework for Holding Companies
Before Ireland joined the European Union, the former “offshore” regulations were abolished. The Irish legislation thus today fulfills all relevant EU standards, EU regulations, the OECD- standards, the FATF and the FSF.
Irish companies are recognized throughout the European Union as EU companies with an extensive Tax Treaty Network. This circumstance is used particularly by holding companies. Ireland nowadays has one of the most favourable Tax Regimes and competes within the EU with Cyprus, Malta, the Netherlands and Luxembourg at a split of the cost or with UK as a NON-EU Jurisdiction.
Why not speak to us to about the advantages of a holding structure.
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 world income. Some countries go even further and already assign this tax liability if you can permanently use your own apartment (this can even be the room in your parents’ house or a regularly visited hotel) which you can access with your own keys – knows as “Schlüsselgewalt” in German speaking countries. This rule establishes or maintains an unlimited Tax liability for your world income. If this subject is of interest, you may find out more on our dedicated website for Taxation.
The often cited and in general used “183-Days-Rule” is not entirely correct. It can be only used to a limited extend as few countries (Germany) deem a personal tax liability if one spends in total more than 183 days within the country in two consecutive years, spanning two tax periods.
One can therefore only advise that people interested in relocating their place of residence not to rely on start-up agencies and other jokers – the pitfalls are simply too great and sound advice is required. A few advisors (specialized lawyers, accountants) study tax law for years, others do a weekend seminar or attend the Google University – where do you feel better off?
It’s amazing what’s on offer on the internet. Believe us – there is no point in having no tax residency/residence anywhere. If in doubt, you never gave up your original tax liability (in your country of birth) or you are automatically subject to tax through your passport.
If you have plans for company formations in Ireland it makes sense to speak about your relocation in detail.
TOP Jurisdiction for EU-Residence
Ireland, however, offers ideal conditions for a tax residence. To obtain a tax residence, one need to stay more than 183 days in Ireland. With close links to other European countries, good flight connections and travel times of roughly two hours into the center of Europe, is this an ideal place to conduct business of any kind.
Of course, you are not allowed to 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 come to us, you can rely on well-founded and legally sound advice. Together we will find your ideal life concept.
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