The Netherlands is an attractive place for many foreign entrepreneurs to establish themselves as a company. The Netherlands offers a favorable tax climate, is relatively cheap in terms of operating costs, and has a highly educated workforce. The Netherlands is also a front-runner when it comes to entering into international tax treaties. Enough reasons to start a company in the Netherlands. Are you also considering starting a business in the Netherlands? We would love to help you. Read what to keep in mind when starting your own business in the Netherlands.
Work permit (TWV or GVVA)
If you want to hire an employee from outside the European Economic Area or Switzerland, you need a work permit (TWV) or a combined residence and work permit (GVVA). Since 1 October 2020, family members of foreign self-employed professionals no longer need a work permit.
Business bank account
To start a business, you will also need a business bank account (IBAN). The Dutch Banking Association (Nederlandse Vereniging van Banken) created a Quick Scan to help you find out if you are eligible. With an IBAN account, the national and cross-border euro payments are easy and secure. We advise you to keep your private bank account separate from a business bank account.
Many people are doubting whether to operate as a sole proprietor (eenmanszaak) or as a private limited company (BV). The main difference is that a sole proprietor qualifies as an entrepreneur for income tax purposes, where the profits are taxed in Box 1. When operating as a private limited company, you are an employee for income tax purposes (salary is taxed in Box 1), and as the holder of a substantial interest (profits and dividends are taxed in Box 2). Most people start as a sole proprietor or partnership (Vennnootschap onder Virma) because of the tax benefits.
Also, there is a big difference in liability between a sole proprietor and a private limited company. For example, when your company would go bankrupt, you are personally liable with a sole proprietor. If you are the owner of a private limited company, you are employing yourself to the company which will give you more certainty. Which structure is better for you depends on how high the profit will be and on the volume you will make. Do you need help choosing the right structure? Our accountants would like to advise you.
A few weeks after registration, the Dutch Tax and Customs Administration will send you a letter with all the relevant information. You may also receive a VAT number and a tax return form.
To see which health insurance suits you the best and to company prices, you can visit Independer or Zorgwijzer.
Registering a foreign address with the Chamber of Commerce (KVK)
If you are moving to a foreign country, it is important that you pass on your new business address to the Chamber of Commerce. Your company is registered there and is linked to your business or private address. You may register a foreign address with the Chamber of Commerce, but only when your actual activities continue to exist in the Netherlands. Isn't this the case? Then you have to deregister and re-register at the Chamber of Commerce in the country concerned. The Chamber of Commerce checks whether you are active in the Netherlands or not.
Tax as a self-employed person from abroad
In addition, you will have to take into account different tax rates if you are going to work from abroad. If you are established in the Netherlands, you will be taxed in the Netherlands for your work, even if it takes place abroad. Is your business address abroad? Then you have to pay your tax on your income to the country in which you work.
Contact the Chamber of Commerce shortly and discuss your plans with your bookkeeper or accountant.
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