B.V. or eenmanszaak?

Choosing a business type

The first thing that you need to do is decide what type of company you want to establish in the Netherlands. You can choose between a Private limited company (B.V.) or an Eensmanszaak (ZZP), depending on your company’s expected revenue.

The type of business structure you choose can affect your eligibility for the expat scheme (30% ruling):

• Eenmanszaak (Sole Proprietorship): As a sole proprietor, you are not eligible for the expat scheme. This is because the ruling is designed for employees, and as a sole proprietor, you are technically not an employee. All income in the sole proprietorship is taxed as personal income with a relatively high tax burden. Because of the various tax breaks designed for the sole proprietorship, this structure is usually still preferable over the B.V. with an expat scheme if you make roughly under EUR 70,000 and it is not likely that income will grow. More about the eenmanszaak here: https://business.gov.nl/running-your-business/legal-forms-and-governance/sole-trader-or-sole-proprietorship-in-the-netherlands/
• BV (Private Limited Company): It is possible to qualify for the expat scheme as a director/employee of your own BV. However, the BV typically needs to be established before your arrival in the Netherlands. More about a B.V. here https://business.gov.nl/running-your-business/legal-forms-and-governance/private-limited-company-in-the-netherlands/

Expat scheme (30% ruling)

It is possible to qualify for the 30% ruling as a director/employee of your own BV. However, the BV typically needs to be established before your arrival in the Netherlands.

Other benefits of having a B.V. and the 30% ruling include:

• Relocation costs which are expensed as business costs in your B.V. (including additional generic costs up to 7.750 euros as of 2023)
• Schooling costs for any children at an international school in the Netherlands which can be expensed as business costs in your B.V.
• Swapping your foreign driver’s licence for a Dutch driver’s licence without any additional requirements

More about the expat scheme and how to go about setting up a B.V. you can find here: https://www.nordichq.com/guide-to-the-30-percent-ruling-in-the-netherlands/