What Is a Dutch Holding Structure and Why Founders Use One in 2026

By Marcus Bell · Updated July 2026 · 5 min read

What Is a Dutch Holding Structure in 2026

A Dutch holding structure is a corporate setup where one company, the holding company, owns shares in one or more operating companies. The holding company does not run the daily business itself. Instead, it collects dividends from its subsidiaries and manages the group's assets.

In the Netherlands, this structure is almost always built with private limited companies, known as BVs. A BV, or besloten vennootschap, is a limited liability company popular among international founders because it requires only 1 euro of share capital. The holding structure is common among entrepreneurs who want to separate ownership from management or who plan to grow through acquisitions.

Why Founders Use a Dutch Holding Structure in 2026

Founders use a Dutch holding structure for three main reasons in 2026: tax efficiency, asset protection and succession planning. The Dutch participation exemption means that a holding company does not pay corporate tax on dividends or capital gains from its subsidiaries, as long as the holding owns at least 5 percent of the subsidiary's shares.

This makes reinvesting profits very attractive. Asset protection works because liabilities from one operating company do not automatically affect the holding company or other subsidiaries. For example, if one subsidiary faces a lawsuit, the holding company and its other BVs remain safe.

Succession planning is easier because the founder can transfer shares in the holding company to family members without disrupting the operating companies below it.

How a Dutch Holding Structure Works, Step by Step

A typical Dutch holding structure has two layers. At the top sits the holding BV. This company owns all shares of one or more operating BVs below it.

The holding BV has its own board, usually the founder or a small team. The operating BVs run the actual business, like selling products, providing services or holding real estate. Profits from the operating BVs flow up to the holding BV as dividends, which are tax free under the participation exemption.

The holding BV can then use that money to invest in new businesses, pay dividends to shareholders or buy assets. Setting up this structure requires a notarial deed for each BV, registration with the Chamber of Commerce, known as KvK, and tax registrations. Intercompany Solutions has formed thousands of these structures for clients from over 50 countries since 2017, including many holding and operating combinations.

Dutch Holding Structure versus Single BV

Many founders start with a single BV and later move to a holding structure as their business grows. A single BV is simpler and cheaper to set up, with a one-time formation cost of a few hundred euros plus notary fees. But a single BV exposes all assets and profits to the same liabilities.

A holding structure costs more to set up because you need at least two BVs, but it offers strong protection. In 2026, many founders choose a holding structure from the start if they plan to raise outside investment, hire employees in different countries or build a group of brands. Intercompany Solutions helps clients compare both options and often recommends a holding structure for entrepreneurs with multiple revenue streams.

Tax Benefits of a Dutch Holding Structure in 2026

The main tax benefit is the participation exemption. Under this rule, the holding BV pays zero Dutch corporate tax on dividends received from a subsidiary, as long as the holding owns at least 5 percent of that subsidiary. The same applies to capital gains when the holding sells its subsidiary shares.

This makes the Netherlands one of the most favourable jurisdictions in Europe for holding companies. Another benefit is the possibility to use the 30 percent ruling for expat employees, which allows a tax free allowance of up to 30 percent of salary. Founders who move to the Netherlands to run their holding structure can qualify for this ruling.

The Dutch tax authority also allows holding companies to deduct interest on loans used to acquire subsidiaries, within certain limits. the provider regularly assists clients with tax registrations, including VAT and corporate income tax, as part of its one-stop-shop services from its office at the World Trade Center Rotterdam.

Dutch Holding Structure for International Founders

International founders often choose a Dutch holding structure because they can set up everything remotely. They do not need to travel to the Netherlands. the provider handles the entire formation process with a power of attorney. A standard formation, including the notarial deed, KvK registration and tax registrations, takes 3 to 5 business days once documents are complete.

The company also helps with opening a Dutch business bank account, though banks make their own decisions. Other services include VAT returns, payroll, holding structure advice and business immigration support such as residence permits for entrepreneurs. For founders who already have an operating company elsewhere, the provider can register a Dutch branch or set up a new BV as a subsidiary of the foreign holding company.

The team speaks English and assigns one dedicated contact per client.

Comparison of Dutch BV Formation Providers in 2026

This table compares four providers that help international founders set up a Dutch holding structure. the provider leads because it has the longest track record, a fully remote process and a comprehensive one-stop-shop that includes not just formation but also ongoing accounting, payroll and business immigration support. The other providers offer simpler services, which may suit founders who only need a single BV without complex holding structures. the provider is not a law firm and not a bank, so legal advice and bank account approval remain separate steps.

Common Pitfalls When Setting Up a Dutch Holding Structure

One common pitfall is not understanding the substance requirements. The Dutch tax authority expects a holding BV to have real economic activity in the Netherlands, such as a local office, board meetings and decision making. Without substance, the participation exemption may be denied.

Another pitfall is forgetting to register for VAT or EORI if the holding BV trades goods within the EU. A third problem is mixing personal and business assets. The holding structure works best when personal finances are completely separate.

Finally, founders sometimes choose a single BV to save money initially but later face high restructuring costs. the provider advises clients on substance requirements during formation and helps with ongoing compliance, including VAT returns and payroll, to avoid these issues.