Netherlands · Substance

Will your Dutch B.V. pass a substance check?

A Dutch B.V. without real management in the Netherlands can lose its treaty rates, its 0% withholding under the EU directives, and its bank account. Tick what your company has today and see your score, your gaps and how to close them.

Free first call. We arrange directors, office and board meetings through licensed providers.

Substance at a glance
Checked byTax office, foreign tax offices, banks
DecidesTreaty rates, directive exemptions, tax residence
Core testReal decisions taken in the Netherlands
Director and officeArranged through licensed providers
Your checkFree, two minutes
Substance check

What is your substance score?

Choose what the company does, then tick what it has. The score and the list of gaps update as you go.

1. What does the company do?

2. What does it have today?

A self-check, not a legal opinion. Tax offices look at the whole picture, and the weight of each point depends on what the company does. We review your actual set-up on a call.

What is at stake

Weak substance costs you four things

Treaty rates

Foreign tax offices can refuse reduced withholding if the Dutch B.V. is not the real beneficial owner (Principal Purpose Test).

0% under EU directives

Dividend and interest exemptions under the Parent-Subsidiary and Interest-Royalties Directives need a genuine EU company.

Tax residence

If the board really decides elsewhere, another country can treat the company as its own tax resident.

Your bank account

Banks ask who decides and where. A company with no answer is refused or closed.

By activity

How much substance does your B.V. need?

The Dutch tax office has long used a substance checklist for holdings and financing companies. The more the company does, the more people and office it needs.

Company doesWhat is expectedStaff and office
Holds sharesHalf the board in the Netherlands, decisions and minutes there, Dutch bank account and booksUsually not; for rulings, EUR 100,000 salary costs and own office
Lends within the groupTransfer pricing rules for financing: real control of the risks and equity to bear themYes, own or outsourced
Fund or deal SPVDutch board, decisions in the Netherlands, administration by a Dutch providerThrough providers
Owns IP, earns royaltiesInnovation box needs own R&D; people who control the IPYes
Trades or provides servicesReal office, staff and management in the NetherlandsYes
Paper is not enough

A signature in the Netherlands is not a decision in the Netherlands

Tax offices and banks read the minutes, the emails and the travel records. If every decision arrives pre-signed from abroad, the Dutch board is decoration and the structure is exposed.

We set up the governance so that it works in practice: qualified resident directors who review and decide, meetings with real agendas, and records that show it.

What's included

Substance that stands up to a review

One adviser handles the directors, office, meetings and books. The fee is fixed before we start.

  • ✓

    Substance review

    Your current set-up checked against what the company does.

  • ✓

    Resident directors

    Qualified Dutch directors through licensed providers.

  • ✓

    Registered office

    A Dutch address with a licensed trust office, or a dedicated desk.

  • ✓

    Board meetings

    Agendas, meetings in the Netherlands and proper minutes.

  • ✓

    Accounting and books

    Kept in the Netherlands by a local accountant.

  • ✓

    Tax residence certificate

    Requested from the Dutch tax office when you need it.

  • ✓

    Bank file

    Governance documents banks ask for at onboarding and review.

  • ✓

    Yearly check

    A short review each year as your group changes.

Is it right for you?

Who needs a substance review

A good fit if

  • ✓

    Your B.V. receives dividends or interest from abroad

    That is where foreign tax offices check beneficial ownership.

  • ✓

    Your directors or owners live outside the Netherlands

    Decisions made abroad are the most common weak point.

  • ✓

    Your bank has asked governance questions

    Banks review substance at onboarding and every few years.

Probably not for you if

  • ✕

    The company is dormant

    Close it or use it; substance for an empty shell rarely pays.

  • ✕

    You want a nominee to sign what you send

    We do not provide sham directors, and it would not protect you.

  • ✕

    The business is really run elsewhere

    A company in that country may be the honest answer.

FAQ

Dutch substance questions

Is there a legal minimum for substance in the Netherlands?+

There is no single statutory checklist for every B.V. The tax office uses a substance list for holdings and financing companies: at least half of the board in the Netherlands, decisions and books there, a Dutch bank account, and for rulings EUR 100,000 of salary costs and an own office for 24 months.

How many Dutch directors do I need?+

At least half of the board should live in the Netherlands and be qualified for the role. The right number depends on the size and activity of the company.

Is a registered address enough?+

For a pure holding it is a starting point, together with a Dutch board and local books. Financing, IP and trading companies usually need their own office and people.

What happens if the B.V. lacks substance?+

Foreign tax offices can refuse treaty rates and directive exemptions, and the Dutch tax office can inform them spontaneously. Banks may close the account.

How quickly can you fix weak substance?+

Directors, address and the first board meeting are usually in place within a few weeks. We start with a review of your current set-up.