Starting a business in the Netherlands as an expat: the practical checklist

Setting up a business in the Netherlands as an expat is entirely doable, but it requires ticking off the right boxes in the right order.

This guide walks you through the full process, from confirming whether you can legally run a business here and the required documents to choosing the right legal structure.

Can you legally start a business in the Netherlands as an expat?

Before you create a business bank account or register open positions on LinkedIn, you need to confirm you have the legal right to run a business here.

And these legal requirements depend entirely on your nationality:

• EU, EEA, and Swiss nationals have the simplest path, thanks to the EU’s policy on free movement and residence. This allows you to live and work in the Netherlands, provided you have a valid identity card or passport.
• Non-EU nationals will need a valid residence permit that authorises them to work in the Netherlands. A general residence permit (for example, one tied to a student visa) won’t automatically give you the right to run your own company.

Always refer to information from the Dutch immigration service, as requirements for your work permit may vary, depending on your nationality and the purpose of your stay.

Here’s your checklist for setting up a Dutch business

Whether you’re planning on working your way to a six-figure firm or establishing a freelance business on the side, here’s how to set it all up.

Step 1: Get a Dutch BSN

Before you start building your Dutch business, you’ll need a BSN.

Also known as a burgerservicenummer or citizen service number, this is the Netherlands’ equivalent of a national insurance or social security number. You’ll need it for every administrative process here, from tax to business registration and banking.

READ MORE | How to get a BSN number in the Netherlands: The complete guide

You receive your BSN when you register with your local gemeente (municipality). If you’re staying longer than four months, this registration is legally mandatory.

Step 2: Ensure you have a valid business address

Your business address needs to be a valid address within the Netherlands.

It will appear in the public Handelsregister (Business Register) and will be used by the Belastingdienst for all official correspondence. If you work remotely or from home and don’t want your home address listed publicly, virtual office addresses are also accepted by the KVK.

Step 3: Choose your business structure

As an expat entrepreneur in the Netherlands, this is one of the most significant decisions you’ll make. This is because your business structure has tax, legal, and financial implications that will follow you for years.

While the Dutch system typically offers several structures, most international business owners choose one of two:

Opting to be a ZZP’er (zelfstandige zonder personeel) or freelancer

This is the simplest and most popular structure in the Netherlands, used by freelancers, consultants, designers, developers, and anyone else working independently.

Typically, there’s no minimum capital or notary required, and registration takes a single KVK appointment.

However, the trade-off is personal liability. As a ZZP’er, you and your business are legally the same entity — so if your business incurs debt, it’s your debt.

Opting to be a BV (besloten vennootschap) or private limited company

The BV is the Dutch equivalent of a limited company or LLC.

Unlike being a ZZP’er, this is a separate legal entity, meaning your personal assets are generally protected if the business runs into trouble. (However, there’s a caveat: directors can be held personally liable for serious mismanagement or fraud.)

In addition to the KVK registration fee of €85.15, notary fees typically add €500–€1,500 — bringing the total cost to roughly €600–€2,000 for a standard single-founder BV.

Step 4: Register with the KVK

KVK, also known as the Kamer van Koophandel or the Dutch Chamber of Commerce, manages the official register of all businesses operating in the Netherlands.

Before you can conduct any business transactions, you’ll need to set up an appointment with the KVK.

For your appointment, you’ll typically need your:

• Valid passport or ID
• BSN
• Dutch business address
• Chosen business name
• Description of business activities (the KVK will help you identify the correct SBI activity code)

If you’re setting up a BV, you’ll also need the notarially registered deed of incorporation.

You’ll leave with your KVK number, an eight-digit identifier that goes on every invoice, contract, and piece of business correspondence you produce.

Step 5: Sort out your Dutch tax obligations

As the KVK automatically forwards your registration to the Belastingdienst (Dutch Tax Authority), you don’t need to register for tax separately. Your BTW number (VAT identification number) typically arrives by post within 10 days.

Dutch tax obligations kick in from the moment you start trading, and here’s what applies from day one:

BTW (VAT)

In the Netherlands, the standard VAT rate is 21%, with a reduced rate of 9% applying to certain goods and services.

If your annual turnover exceeds €20,000, you’re required to charge BTW on invoices and file quarterly VAT returns with the Belastingdienst. Below that threshold? You may qualify for the KOR (kleineondernemersregeling, the small business VAT scheme).

Corporate tax for BV holders

BV profits are subject to vennootschapsbelasting (corporate income tax) of 19% on the first €200,000 of profit, and 25.8% above that.

Any salary you pay yourself is taxed as personal income; dividends distributed to yourself are subject to a 15% dividend withholding tax (dividendbelasting).

Extra conditions also apply for Americans, as your US tax obligations don’t pause because you’ve moved abroad and started a business.

You’ll still need to file an annual US return, and depending on your Dutch bank balances and business structure, FBAR (FinCEN Form 114) and FATCA disclosures may also apply.

Step 6: Open a business bank account

Once you have your KVK number, you can open a Dutch business bank account.

READ MORE | How to open a bank account in the Netherlands: the ultimate guide

Keeping your business and personal finances separate from day one can make tax filing more straightforward, accounting cleaner, and your business more professional to any clients or future investors who ask to see your records.

Most banks will typically require your:

• KVK number,
• business activity description,
• and registered address.

Step 7: Get the right insurance

Once you’ve covered the financial aspect of your business, it’s time to ensure you’re fully insured.

These are the most common types of insurance you may need as a business owner in the Netherlands:

• Dutch health insurance (zorgverzekering) is legally mandatory for all residents, including freelancers and BV-owners. 
• Professional liability insurance (beroepsaansprakelijkheidsverzekering) covers you if a client claims your work caused them financial loss. Whether you need it depends on your sector, but many larger organisations require it as a condition of signing a contract.
• Disability insurance (AOV or arbeidsongeschiktheidsverzekering) isn’t legally required for ZZP’ers, but could be the most important coverage you’ll take out. An AOV is what keeps the bills paid if you’re unable to work for weeks or months, as you have no employer to cover extended sick leave.

Have you started a business in the Netherlands as an expat? Share your experience in the comments below.

Starting a business in the Netherlands as an expat: Frequently asked questions