The Netherlands runs almost everything through a single agency, the KVK (Chamber of Commerce), which registers your business and automatically passes your details to the tax authority behind the scenes. For a sole proprietorship, that means one appointment and you're done. Here's what it takes to start a business in the Netherlands in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Eenmanszaak (sole proprietorship). The standard route for freelancers, commonly called ZZP'ers. You and the business are the same legal entity, with unlimited personal liability, but registration is fast and cheap.
- Vof (general partnership). Two or more people running a business together under a partnership agreement, with liability generally shared.
- BV (private limited company). A separate legal entity with limited liability, formed through a notary. There's no meaningful minimum share capital requirement anymore, but the notary step adds real cost and time compared to a sole proprietorship.
2. Register your business
You register at the KVK (Kamer van Koophandel), which maintains the Handelsregister, the Dutch commercial register. For an eenmanszaak, you typically complete an online form in advance and then attend an in-person appointment with valid ID; the one-off registration fee is €85.15 in 2026 (this amount is adjusted for inflation each year), and you get your KVK number immediately at the appointment. There's no recurring annual fee for keeping the registration itself active.
A BV requires an extra step first: a notary has to draft the incorporation deed and articles of association before you register with the KVK, and notary fees typically run €300 to €1,200 or more depending on complexity. You'll also choose an SBI code at registration, a standard classification describing what your business does.
3. Get your BTW-id
Once you register at the KVK, your information is automatically forwarded to the Belastingdienst (Tax Administration); you don't register with them separately. Within roughly two weeks, you'll receive two numbers by post: a btw-id (VAT identification number, in the format NL123456789B01) that goes on your invoices and website, and a separate omzetbelastingnummer used only for your own contact with the tax authority. You can't legally invoice until the btw-id letter arrives.
4. Check licenses and permits
The Netherlands doesn't issue a single national business license. What you need depends on your industry and municipality: certain trades and premises need local permits, regulated professions need their own authorization, and food, hospitality, and similar sectors typically carry additional requirements. Check with your municipality directly for anything industry-specific.
5. Understand Dutch taxes
Sole proprietors pay Box 1 personal income tax on profit, progressive across two main brackets that work out to roughly 37% and 49.5% in 2026. A partial offset, the Mkb-winstvrijstelling (SME profit exemption), excludes 12.7% of your profit from tax entirely, which meaningfully softens the effective rate.
A BV pays corporate income tax (vennootschapsbelasting, VPB) instead: 19% on the first €200,000 of profit and 25.8% above that. If the BV distributes profit as dividends, a 15% dividend tax applies on top, sometimes reduced under a tax treaty depending on where the recipient lives. A director-major shareholder (DGA) of a BV is also legally required to pay themselves a market-conform minimum salary, around €56,000 in 2026, which matters for cash flow planning in the early years.
VAT (BTW) is 21% standard, with a 9% reduced rate for food, books, and certain other goods and services. Businesses with annual turnover under €20,000 can opt into the Small Business Scheme (KOR), which exempts them from charging or collecting VAT at all.
6. Stay compliant
If you have a VAT number, you must file a BTW return, typically quarterly, even if it's entirely zero; missing one triggers an automatic €68 fine plus a "default assessment" the Belastingdienst calculates on your behalf, which can run to thousands of euros if you don't correct it. BVs additionally file annual financial accounts (jaarrekening) with the KVK and must maintain up-to-date UBO (Ultimate Beneficial Owner) registration.
Netherlands business costs at a glance
| Item | Cost |
|---|---|
| KVK registration (eenmanszaak) | €85.15 |
| BV notary fees (in addition to KVK) | ~€300 to €1,200+ |
| BTW-id / VAT registration | Free, automatic |
| Corporate tax (VPB), first €200,000 profit | 19% |
| Corporate tax (VPB), above €200,000 | 25.8% |
| Dividend tax (BV distributions) | 15% |
| VAT (standard rate) | 21% |
| Small Business Scheme (KOR) exemption | Under €20,000/year turnover |
Frequently asked questions
How much does it cost to register a sole proprietorship in the Netherlands?
A one-off KVK registration fee of €85.15 in 2026, with no recurring annual fee to keep it active.
How much capital do I need to start a BV in the Netherlands?
There's no meaningful minimum share capital requirement, though notary fees for the incorporation deed typically run €300 to €1,200 or more.
What's the corporate tax rate for a BV in the Netherlands?
19% on the first €200,000 of profit, 25.8% above that, plus 15% dividend tax on distributions.
When do I need to register for VAT in the Netherlands?
Registration happens automatically through the KVK when you form your business. You can't invoice legally until your btw-id letter arrives, typically about two weeks after registration.
What is the KOR scheme in the Netherlands?
The Small Business Scheme, which exempts businesses with annual turnover under €20,000 from charging or collecting VAT at all.
Fees and rates above come from the KVK and Belastingdienst as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Netherlands-qualified accountant or lawyer about your specific situation.