How corporate tax works in Netherlands
Dutch-resident companies are generally taxed on worldwide profits, subject to participation exemption and treaty outcomes. The 2026 corporate income tax rates are 19% on the first EUR 200,000 and 25.8% on the excess.
The Netherlands remains a major holding and finance jurisdiction because of its participation exemption, treaty network and legal infrastructure. That advantage depends on substance, anti-abuse rules and beneficial-ownership standards.
Large groups can also face Pillar Two minimum-tax rules. Operating companies still need to budget for VAT, wage tax, social security and transfer-pricing compliance.
Tax rates at a glance
- Profit up to EUR 200,000
- 19%2026
- Profit above EUR 200,000
- 25.8%
- Participation exemption
- Often available
- Domestic dividend WHT
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Holding companiesFoundersMultinationalsFinance and IP structuresCross-border groups
Watch out for
- A Dutch BV is not automatically low-tax once director salary, Box 2 extractions and substance costs are included.
- Interest deduction limits, ATAD rules and transfer pricing can move the effective rate more than the headline brackets.
- Participation exemption is powerful but condition-heavy. Portfolio holdings and low-taxed passive subsidiaries need care.
- Dividend withholding tax and non-resident corporate tax can still appear on the way out of the structure.
Frequently asked questions
What is the corporate tax rate in the Netherlands?
In 2026 it is 19% on the first EUR 200,000 of taxable profit and 25.8% above that.
Is the Netherlands good for holding companies?
Often yes, because of the participation exemption and treaty network, but substance and anti-abuse rules are central to whether the structure holds.
Are company profits taxed again when distributed?
They can be. Dividend withholding tax and shareholder-level Box 2 or foreign tax may apply depending on who owns the company.