Netherlands

Start a business and keep the Dutch 30% ruling

Foreigners starting their own business in the Netherlands may be able to claim the 30% ruling and receive tax exemption on part of their income.

Foreigners living in the Netherlands can benefit from a 30% ruling if they work for a Dutch employer. What’s lesser known is that the 30% ruling may also apply to freelancers under certain conditions. start a business.

This guide will walk you through the loopholes where you can profit from or keep the 30% ruling by starting your own business.

What is the 30% ruling for expats?

of 30% tax ruling In the Netherlands, it is intended for employees hired from abroad, provided that they meet certain salary conditions. If eligible, a foreign employee can receive 30% of her salary as a tax-exempt benefit. This allowance is compensation for the costs of relocation and working in the Netherlands. Available for up to 5 years.

Aerial view of Amsterdam

but, 30% rule It applies to employees, not freelancers, but foreign entrepreneurs who want to start their own business in the Netherlands can also benefit from the award if they follow the proper procedures.

Self Employment and the 30% Ruling

start your own business is a popular movement in the Netherlands. 16.8% Self-employed in the working population. This includes many foreign entrepreneurs who migrate and work freelance or run their own companies. However, all foreign residents who start their own business Dutch tax systemthey can qualify for a 30% tax ruling.

30% adjudication is for employees. If you are a sole proprietor or have an unincorporated business, you cannot claim it. However, there is a loophole. If you set up your business as another legal entity, such as a limited liability company (BV), you can run payroll as an employee of your own company. Legally, you are classified as an employer rather than a self-employed person. As long as your company is registered with the Dutch Tax Office for payroll tax, you are subject to the 30% rule.

Immigrate to the Netherlands to start a business

One of the conditions of the Dutch 30% tax system is that it must be adopted from abroad. This means that if you want to assert your judgment, you cannot simply relocate and then start your business. However, you can set up your BV before moving to the Netherlands.

The first step is to contact your local Chamber of Commerce (Kamer voor Koophandel, or KVK). You can then sign the contract yourself and enter into an employment relationship with your own company. The final step is simply to transfer as an employee.

Amsterdam Chamber of Commerce KVK
Amsterdam Chamber of Commerce (KVK)

Forming a law firm from overseas can be complicated, so seek expert advice from firms such as:

Foreign company and 30% ruling

If you are already doing business through a foreign company outside the Netherlands, you can also take advantage of the loophole. Simply register the foreign company with the Dutch tax office for payroll tax and apply for his 30% ruling as an employee of your own foreign company.

Essentially the same conditions apply as when setting up a BV. It is then possible to build a business model through BV at a later stage.

Follow the 30% rule if starting a business from a job

The 30% rule applies for up to 5 years and continues even if you change jobs in the Netherlands. You can reapply as long as you meet the eligibility requirements and sign a new employment contract within three months of leaving your job. This means you can quit your job and start your own business and still maintain your arbitrage.

As long as the business is a BV, the same rules as above apply. If your his BV was established and you signed an employment contract with the BV within 3 months of leaving, you can transfer the 30% ruling to your new business without any problems. However, please note that even if he does not use it for 3 months, the end date of the ruling will not change.

The only circumstances in which you cannot claim the 30% ruling if you are self-employed are if you start a side business or take on additional freelance work while employed. The 30% ruling only applies to one work relationship. Therefore, if you have a side job or a freelance side job, you do not meet the eligibility requirements. You may request an award only for your current employment.

Tax Issues to Consider

Consider the pros and cons before deciding to pursue a 30% control option when starting your business. Partial non-resident status has significant advantages as income from savings and investments is not taxed. However, despite the financial benefits, you need to understand the visa requirements, tax obligations, and administrative responsibilities of running a BV.

Thankfully, however, there are a number of foreigner-friendly tax advisors in the Netherlands who can help you understand the 30% ruling. They can also help with many tax-related issues by providing advice and information in English or another language. Dutch foreign-friendly tax accountants are:

website Business.gov.nl provides a list of Dutch organizations that can provide information to freelancers and self-employed professionals.you can find a list of Dutch tax accountant in our directory.

helpful resources

  • belastodienst: 30% Ruling Advice from the Dutch Tax Office
  • KVK: Dutch Chamber of Commerce

https://www.expatica.com/nl/finance/taxes/starting-a-business-and-keeping-the-30-percent-ruling-in-the-netherlands-1739159/ Start a business and keep the Dutch 30% ruling

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