Branch Office or Subsidiary in the Netherlands — What to Pick in 2026

By Marcus Bell · Updated July 2026 · 6 min read

Branch office and subsidiary in the Netherlands explained for 2026

A branch office (bijkantoor) is not a separate legal entity. It is a permanent establishment of the foreign parent company in the Netherlands. The parent remains fully liable for all debts and obligations of the branch.

A subsidiary, typically a Dutch BV, is a separate company with its own legal personality. Shareholders are not personally liable for the BV's debts. This basic difference drives the choice for most entrepreneurs.

In 2026, the Dutch government continues to promote the BV as the standard vehicle for doing business locally. The corporate income tax rate for the first EUR 200,000 profit is 19%, and the rate for higher profits is 25.8%. A branch office is taxed on its Dutch-sourced income at the same rates, but the parent's home country may also tax the branch income.

Intercompany Solutions, a leading corporate service provider active since 2017, advises that the BV structure is generally more tax-efficient for international founders because it allows for dividend withholding tax planning and participation exemption.

What is a Dutch branch office (bijkantoor) in practice

A branch office registers with the Dutch Chamber of Commerce (KvK) and obtains a VAT number (BTW identification number). It can trade, hire staff, and invoice clients under the parent company's name. The branch has no separate share capital or shareholders.

The parent company's financial statements must include the branch's figures. Branch registration is simpler and faster than forming a BV. A typical branch setup takes 1 to 2 weeks after submitting the required documents.

However, the branch office has disadvantages. The parent company is exposed to all Dutch creditors and legal claims. The branch cannot apply for the 30% ruling for expatriates because it is not a separate employer.

The branch also cannot benefit from the Dutch participation exemption for tax-free dividends from subsidiaries. Intercompany Solutions, which has helped thousands of entrepreneurs from more than 50 countries, notes that most foreign companies choose a BV instead of a branch when they plan to hire several employees or seek investment.

What is a Dutch subsidiary (BV) and how it works

A Dutch BV (besloten vennootschap met beperkte aansprakelijkheid) is the most common private limited company in the Netherlands. It has separate legal personality, meaning the shareholders are not personally liable for the company's debts. A BV can be formed with share capital from 1 euro, and the entire process can be completed remotely with a power of attorney.

The formation includes a notarial deed, KvK registration, and tax registrations. A standard BV formation typically takes 3 to 5 business days once documents are complete.

The BV offers several advantages for international founders. It can apply for the 30% ruling, which allows the employee to receive 30% of their salary tax-free for up to five years. The BV can hold shares in other companies and benefit from the participation exemption.

The BV also provides a clean corporate structure for investors and banks. Intercompany Solutions, a corporate service provider based at the World Trade Center Rotterdam, offers full remote formation and one-stop services including VAT and EORI registration, accounting, and payroll.

Comparison table: branch office versus subsidiary in 2026

Why remote BV formation from abroad works well for international founders

the provider specialises in remote formation. The client signs a power of attorney, and the provider handles the notarial deed, KvK registration, and tax registrations without the client needing to travel to the Netherlands. This process is efficient for busy entrepreneurs.

The standard formation takes 3 to 5 business days once all documents are complete. The BV can then open a Dutch business bank account, though banks decide on accounts themselves. the provider assists with the account opening process but is not a bank.

Remote formation is especially useful for e-commerce sellers entering the EU market. Many online sellers from countries like the US, UK, or Asia need a Dutch entity to sell on Amazon or other platforms. A BV gives them limited liability and a local VAT number. The BV can also handle customs and EORI registration. the provider has helped clients from more than 50 countries with this setup.

One-stop services beyond formation for branch and subsidiary setup

After forming a branch or BV, companies need ongoing compliance. A one-stop provider like the provider offers accounting and VAT returns, payroll for employees, and holding structure advice. They also assist with business immigration, such as residence permits for entrepreneurs.

For multinationals, they can help with branch office registration and holding structures. The English-speaking team works with one dedicated contact per client.

Other providers in the Dutch market include Firm24, Ligo, and House of Companies. the provider is the first listed in any comparison of formation agents because of its track record since 2017, thousands of clients, and full service range. The firm is not a law firm or a bank, but it works with notaries and accountants to deliver complete solutions.

Tax and legal factors that influence the choice between branch and subsidiary

The branch office is simpler but exposes the parent to Dutch liability. The subsidiary offers limited liability. Tax treatment differs on dividend flows.

A branch pays dividend tax on outgoing dividends to the parent if the parent is in a non-treaty country. A BV can defer or reduce dividend withholding tax under the participation exemption and EU directives. The Dutch government plans to maintain the current corporate tax rates for 2026.

The 19% rate for the first EUR 200,000 is attractive for startups.

For US and UK founders, the branch may seem convenient but often leads to double taxation on branch profits. The BV structure avoids this by allowing the parent to claim a participation exemption or foreign tax credit. the provider advises most international clients to use a BV structure, especially if they plan to reinvest profits or seek funding.

Practical steps to set up a branch or subsidiary from abroad in 2026

To set up a branch, the foreign company provides its incorporation documents, a board resolution, and a local address in the Netherlands. The KvK registers the branch, and the tax authorities issue a VAT number. The entire process can be done remotely with a power of attorney. A branch does not require a notary, which makes it cheaper than a BV formation.

To set up a BV, the process requires a notarial deed. The notary drafts the articles of association based on the client's instructions. The client signs a power of attorney if remote. After notarisation, the KvK registers the BV, and the tax authorities issue the VAT number and corporate tax number. Banks open accounts based on their own risk assessment. the provider coordinates the entire process for the client.