Taxation of Foreign Investors in the Netherlands
Taxation of Foreign Investors in the NetherlandsUpdated on Monday 20th March 2023
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Competitive taxation in the Netherlands
The Netherlands has a very attractive taxation regime for foreign investments. The country imposes a differential corporate tax for companies and the government offers various incentive programs for new companies.
The consultants at our Dutch accounting firm can give you detailed information about the fiscal climate for foreign companies and also provide you with specialized tax consultancy and advice.
The corporate income tax in the Netherlands
The Dutch tax system makes the country one of the most attractive locations for new companies. The country is considered one of the most tax friendly countries in Europe and in the world. The tax policy is also aided by the numerous double tax treaties concluded by the Netherlands with numerous countries. These treaties provide for reduced withholding tax rates on dividends, royalties and interest.
The corporate income tax in the Netherlands has a value of 20% for the first 200,000 euros and 25% for profits exceeding this value. The corporate tax is imposed on the worldwide income of a Dutch resident company (a company incorporated in the Netherlands).
Non-resident companies like branches are only taxed on their Dutch-source income. This income includes that received from sources like business income (derived form a permanent establishment or a permanent representative) or income derived from immovable property owned in the Netherlands.
The normal corporate income tax applies for foreign companies, on the income produced in the Netherlands. The representatives at our accounting firm in the Netherlands can help you determine the amount of payable taxes, according to the income produced in the country.
Other taxes in the Netherlands
Apart from the corporate income tax, other taxes apply in the Netherlands. The transfer tax is applicable upon the acquisition of the economic or legal ownership of immovable property and it can also apply when acquiring shares in a company. Road taxes, excise taxes or municipal taxes and inheritance and gift taxes are also applicable in the Netherlands.
EU companies in the Netherlands benefit from the Parent/Subsidiary Directive which allows for full exemption on the dividend withholding tax, in some cases.
You can contact the experts at our Dutch accounting firm if you have any questions about taxation for foreign companies. Our agents can also help you with professional accounting services for your business. A company's manpower requirements are always unique. This means one company can have more or less employees. This will also affect your company from a taxation point of view as it can be categorized as a small, medium or large-sized enterprise. In this regard, feel free to contact us since we provide a broad range of services relating to Dutch payroll.