Favourable fiscal climate

The Netherlands offers a very attractive fiscal climate. Discover the highlights about tax advantages in the Netherlands.

• Highly competitive corporate tax rate

  • The corporate tax rate of 25% is lower than the national average of the EU-25 (25.8%) and far below the average of the EU-15 (29.5%). For smaller firms, even lower rates will apply -- 20% for the first € 200,000.

• A wide tax treaty network

  • The Netherlands has a superior treaty network created as part of an overall policy of removing obstacles to international flows of goods and capital as far as possible. The treaties avoid double taxation on income and capital, and reduce withholding taxes on dividends.
    

• Benefit from participation exemption

  • This feature exempts from Dutch corporate income tax any and all benefits related to a qualifying shareholding -- such as cash dividends, dividends-in-kind, bonus shares, hidden profit distributions and capital gains.
    

• Save substantially on labor costs: 30% tax ruling for expatriates

  • The Netherlands has a special tax regime for expatriates, the so-called 30% ruling, which provides a substantial income tax exemption of up to 30%, for a period of up to 120 months. This is viewed as a reimbursement for the extra costs involved in living abroad. In addition, the employer may reimburse certain costs tax free. These include international school fees, relocation expenses and a moving allowance up to a certain limit. For more information, please contact us.

• Certainty in advance: Advance Tax Ruling Practice

  • This covenant between Dutch tax authorities and the taxpayer, agreed to in advance, ensures they view a company's tax situation in a certain way in cross-border situations. It allows companies to obtain a predetermined tax ruling regarding what will be taxed. Companies can lock in their future tax position for a specified number of years.