Setting up a BV as an expat in the Netherlands: what you need to know

Setting up a BV as an expat in the Netherlands: what you need to know

The Netherlands is a popular location for international entrepreneurs. The infrastructure is excellent, the location in Europe is ideal and the business climate is attractive. But as an expat or foreign entrepreneur there are a few extra things to keep in mind when setting up a BV. In this article we lay it out clearly.
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Can I set up a Dutch BV as a foreigner?

Yes, you can. Your nationality or place of residence does not matter in principle. Anyone can set up a Dutch BV, even if you do not live in the Netherlands or are not a Dutch national.
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What do you need?

A valid identity document

A passport or European identity card is sufficient. You need this at the notary for the incorporation.

A Dutch registered address

Your BV must have an official Dutch address where post can be sent. A PO box is not sufficient. This can be an office address, a co-working space or a registered business address.

A Dutch notary

The deed of incorporation is drawn up in the Netherlands by a Dutch notary. This can partly be done remotely but identity verification often requires a personal appointment or a legalised copy of your identity document.

A BSN number

If you want to pay yourself a salary as a DGA from the BV, you need a Dutch citizen service number (BSN). Living in the Netherlands? Then you already have one. Living outside the Netherlands? Then you apply for a BSN through the RNI, the Registration of Non-Residents. You can do this at one of the designated RNI desks in the Netherlands. The Dutch Tax Authority then automatically registers you as a foreign taxpayer.

After that, also apply for a DigiD. DigiD is your digital identity for logging in to the Dutch Tax Authority website so you can file your tax return as a foreign taxpayer online.
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How does tax work as an expat?

This is where it gets a bit more complex, as it depends strongly on where you live.

You live in the Netherlands

Then you pay income tax here on your worldwide income, including your DGA salary from the BV. The BV itself pays corporate income tax in the Netherlands on its profits.

Living in the Netherlands as an expat and recruited from abroad? Then the 30% ruling may apply. That ruling allows your employer, in this case your own BV, to pay 30% of your gross salary tax-free as compensation for the extra costs of working far from home. From 1 January 2027 this percentage will be reduced to 27%.

You live outside the Netherlands

Then your BV simply pays corporate income tax in the Netherlands on its profits. Your DGA salary is in principle taxed in the Netherlands, unless a tax treaty determines that it should be taxed in your country of residence.

The Netherlands has concluded tax treaties with many countries. That treaty determines which country has the right to tax certain income. This is tailor-made per situation.

Dividend

Distributing dividend from the BV to your personal account? Then you pay dividend tax in the Netherlands. Here too a tax treaty may determine that this works differently if you live outside the Netherlands.
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What is the 30% ruling exactly?

The 30% ruling is a tax benefit for employees who come to work in the Netherlands from abroad. The conditions are:

• You were recruited from outside the Netherlands or seconded to the Netherlands
• You have specific expertise that is scarce on the Dutch labour market
• You lived more than 150 kilometres from the Dutch border before coming to the Netherlands

If you meet the conditions, your BV may pay 30% of your gross salary tax-free. That significantly reduces your effective tax burden. From 1 January 2027 this will be 27%. The ruling runs for a maximum of five years.
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What if I live on the BES islands, Bonaire, Curaçao or Aruba?

The BES islands (Bonaire, Sint Eustatius and Saba) and the other Caribbean islands of the Kingdom fall under different fiscal rules. If you live on Bonaire and have a Dutch BV, specific rules apply regarding where profits are taxed and how dividends are treated. This is specialist work and differs per island and per situation.

Living on one of the Caribbean islands and have a Dutch BV? Always seek advice from someone who knows the fiscal position from both sides.
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Quick summary

As an expat you can simply set up a Dutch BV. You need a valid identity document, a Dutch address, a notary and possibly a BSN via the RNI. Also apply for a DigiD to access the Dutch Tax Authority website online. How tax works depends on where you live and whether a tax treaty applies. The 30% ruling can significantly reduce your tax burden if you meet the conditions, but will be reduced to 27% from 2027.