Nearly everything runs through one agency in the Netherlands: the KVK (Chamber of Commerce), which registers a business and quietly forwards the details to the tax authority in the background. For a sole proprietorship, that translates into a single appointment and you're operational. Here's how the process works in 2026.
1. Eenmanszaak, vof, or BV
Three structures come up most often for people starting out here.
- Eenmanszaak (sole proprietorship). The standard path for freelancers, usually called ZZP'ers locally. Legally you and the business are the same, liability is unlimited and personal, but getting registered is quick and inexpensive.
- Vof (general partnership). Two or more people running a business together under a partnership agreement, with liability normally shared between them.
- BV (private limited company). A distinct legal entity offering limited liability, formed through a notary. There's no meaningful minimum share capital requirement anymore, but that notary step adds noticeably more cost and time than a sole proprietorship.
2. Registering the business
Registration happens at the KVK (Kamer van Koophandel), which maintains the Handelsregister, the Dutch commercial register. For an eenmanszaak, you generally fill out an online form ahead of time and then show up in person with valid ID; the one-off registration fee sits at €85.15 in 2026 (adjusted for inflation annually), and your KVK number is issued on the spot at that appointment. Nothing recurring is charged just to keep the registration active.
A BV involves an extra step beforehand: a notary drafts the incorporation deed and articles of association before KVK registration can happen, and notary fees typically run €300 to €1,200 or more depending on how complex the setup is. At registration, you'll also pick an SBI code, the standard classification describing what your business actually does.
3. Getting your BTW-id
KVK registration automatically forwards your details to the Belastingdienst (Tax Administration), so there's no separate registration step with them. About two weeks later, two numbers arrive by post: a btw-id (VAT identification number, formatted like NL123456789B01) that belongs on invoices and your website, and a separate omzetbelastingnummer used only when you're in contact with the tax authority yourself. Invoicing legally has to wait until that btw-id letter shows up.
4. Licenses and permits
There's no single national business license in the Netherlands. What applies depends on your industry and municipality: certain trades and premises need local permits, regulated professions need their own authorization, and sectors like food and hospitality typically carry further requirements on top. Your municipality is the place to check anything specific to your line of work.
5. Income tax, corporate tax, and VAT
Sole proprietors pay Box 1 personal income tax on profit, progressive across two main brackets working out to roughly 37% and 49.5% in 2026. A partial offset called the Mkb-winstvrijstelling (SME profit exemption) excludes 12.7% of profit from tax altogether, which noticeably softens the effective rate you actually pay.
A BV instead pays corporate income tax (vennootschapsbelasting, VPB): 19% on the first €200,000 of profit and 25.8% above that threshold. Distributing profit as dividends adds a further 15% dividend tax, sometimes reduced under a tax treaty depending on where the recipient is based. A director-major shareholder (DGA) of a BV is also legally obligated to pay themselves a market-conform minimum salary, around €56,000 in 2026, a detail that matters for cash flow planning in the early years.
VAT (BTW) runs at a standard 21%, with a reduced 9% rate covering food, books, and certain other goods and services. Businesses with annual turnover under €20,000 can opt into the Small Business Scheme (KOR), which removes the obligation to charge or collect VAT entirely.
6. Staying compliant
Holding a VAT number means filing a BTW return, usually quarterly, even when it's entirely zero; skipping one brings an automatic €68 fine plus a "default assessment" the Belastingdienst calculates on your behalf, which can run into the thousands of euros if left uncorrected. BVs additionally file annual financial accounts (jaarrekening) with the KVK and are required to keep their UBO (Ultimate Beneficial Owner) registration current.
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.