Expats (foreigners) in the Netherlands who would like to perform activities as an self-employed entrepreneur / freelancers in the Netherlands (for example dentists/doktors/IT persons) can also benefit from the 30% ruling. One of the requirements is that you as an entrepreneur are being employed by your own company. This means that you are on the payroll as an employee of your own Dutch company.

It does not matter if the company is foreign or is a Dutch B.V. Important is that the company is a legal entity and this company pays wage tax in the Netherlands. Consequently, you send invoices to your old employer / clients.

If you would like to start your own business and implement the 30% ruling for your own BV, please be aware of the following requirements:

• During your current employment the 30% ruling has already been granted in the Netherlands, or it is your first time in the Netherlands;
• Within three months after ending your current employment you have to sign a contract with your own Dutch BV;
• A Dutch BV must be set up before signing the contract;
• The Dutch BV pays a taxable income of at least € 38,347 (excluded the 30% ruling);
• A new request of the 30% ruling must be filed at the Dutch tax authorities;
• The Dutch BV must apply for a VAT number at the Dutch tax authorities in order to invoice with VAT;
• We recommend to obtain a special form issued by the Dutch tax authorities called “VAR DGA” (“verklaring arbeidsrelatie”) annually.

The advantage of having your own company instead of being on the payroll somewhere is:

• You will earn more and do not pay any corporate income tax
• You can schedule your own time
• You can declare all your expenses through the company (dinners, car, company car, computer etc.)

The disadvantage of having your own company is:

• You need to maintain a payroll administration
• You need to maintain a business administration
• VAT tax filing obligations