Taxes and incentives

Corporate income tax rate is 19% for the first € 200,000 of taxable profits and 25.8% for taxable profits exceeding this amount. A special optional effective tax rate of 9% may be selected for profits resulting from intangible assets (Innovation box). 

The 30% ruling allows employers to pay international employees 30% of their salary tax-free to compensate for extra costs when moving to the Netherlands. 

Wide tax treaty network to avoid double taxation and reduce withholding taxes on dividends, interest and royalties. 

No withholding tax on interest and royalties

Participation exemption of 100% for qualifying dividends and capital gains from shareholdings which is beneficial for European headquarters.  

Fiscal unity regime offers tax consolidation within a corporate group.  

VAT reverse charge mechanism on import which means no actual payment of VAT and cash-flow advantages.  

Certainty in advance on tax implications of planned investments in the Netherlands (Advanced Tax Rulings).

Tax credit for R&D (WBSO / WBSO) allows companies deduct tax for part of the research and development wage costs, other costs, and expenditures. 

Energy Investment Allowance (EIA): allows companies to deduct 45.5% of  investments in energy-efficient technologies and sustainable energy from the taxable profit on top of the usual depreciation. 

Environmental Investment Deduction (MIA): allows companies to deduct up to 45% of investment costs for an environmentally friendly investment on top of regular investment tax deductions. 

Arbitrary depreciation of environmental investments (Vamil): allows companies to depreciate 75% of the investment costs of an environmentally friendly investment at a random moment to take advantage of liquidity or interest. 

Innovation Credit: allows companies to apply for credit to finance the development of high risk, technological innovation projects. 

Sustainable Subsidies for Businesses 

Industrial Space Subsidy Program: Subsidy for companies in the manufacturing industry that are expanding or establishing themselves in the Spanish Polder or the Rotterdam Makers District. 

Smart Energy Systems (SES) program: the municipality grants subsidies to organisations and entrepreneurs who accelerate the energy transition with their initiatives. The subsidy amounts to a maximum of EUR 100,000 for a feasibility study, experimental development, or a pilot in the field of Smart Energy Systems.

Energy Transition Loan for Entrepreneurs: The Rotterdam Energy Transition Fund (of which the energy transition loan is a part of) is designed to finance energy-saving and home or building improvement measures. 

Energy Transition Fund for Major Sustainable Investments: This fund finances innovative businesses and large-scale sustainable projects that can contribute to Rotterdam's energy transition and circular economy. 

Hydrogen and Green Chemistry Subsidy: 'Green' hydrogen plays a significant role in achieving climate goals. However, its production is still quite expensive. A new subsidy for hydrogen and green chemistry aims to address this issue. 

Netherlands Foreign Investment Agency (NFIA) for an overview of key benefits of the Dutch tax system and incentives. 

Netherlands Enterprise Agency for a guide on available subsidy and funding options. 

Dutch Tax and Administration for tax related information for business who are not established in the Netherlands. 

Business.gov.nl for information for entrepreneurs about business taxes 

Subsidies and Ondernemen010 (Dutch websites): local subsidies for entrepreneurs