Procedures

The Dutch Holding, Finance and License Company

The Netherlands tax system is one of the most advanced tax systems in the world with international orientation. It is designed to make the Netherlands an attractive location for foreign investors.

A holding company is a company set-up in the Netherlands to hold the shares in domestic or foreign subsidiaries. On the basis of the Dutch participation exemption, income (i.e. dividend income and capital gains) derived from qualifying participations is corporate income tax exempt. This is one of the main reasons why international companies come to the Netherlands. Other important tax reasons are the extensive Dutch tax treaty network to avoid double taxation and the possibility to discuss tax issues with the Dutch tax authorities in advance.

Quite often holding companies also perform financing and licensing activities. This is also reasoned by the absence of Dutch withholding tax on interest and royalties.

Holland Gateway can connect you to our specialist network partner for further information on the benefits of holding, finance and license companies in the Netherlands.