The Netherlands has long been a favourite home for foreign investors. It has a stable and successful economy and a trade and investment policy that is one of the most open in the world. The Netherlands has a liberal tax regime including generous participation exemption in which dividends received and capital gains realised are exempt from Dutch Corporate Income Tax. A Dutch limited liability company can be registered within 4 weeks.
Public Limited Company (NV):
- minimum share capital is €45,000, at least 20% of this must be issued
- minimum one shareholder of any nationality and residence
- management board and supervisory board are required
- resident secretary is required
- Local registered office is required
- Suitable for companies wishing to raise capital publicly
- Audited accounts must be filed with the Chamber of Commerce
Private Limited Company (BV):
- minimum share capital is €1
- minimum one shareholder of any nationality and residence
- minimum one director is required
- Local registered office is required
- resident secretary is required
- Shareholders’ liability is restricted to their individual capital contribution
- Audited accounts must be filed with the Chamber of Commerce
Taxation:
- corporate tax is 20% for the first 200,000 EUR and 25% for the amounts exceeding 200,000 EUR
- dividend tax is 15%, while interests and royalties are no subject to any withholding taxes
- VAT rate is 21%, but reduced rates of 6% apply to certain products
- Royalty payments and interest payments to a residence business entity are tax exempt