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Dutch Holding Regime

A holding company − often referred to as mother- or parent company − is an umbrella organization that owns the shares of various companies (which can be operating companies or subsidiaries). The Dutch holding regime in particular, is so popular due to its flexibility in Dutch corporate law and the outstanding Dutch fiscal infrastructure, which also includes the Dutch participation exemption regime and the extensive Dutch tax treaty network.

Whether you are the direct owner of a subsidiary, or you’re owning through a corporate structure, the repatriation of profits may trigger taxation in the state where the subsidiary is established. And to top that, as a direct shareholder, you may be taxed in your own country for the income which you receive. Through the application of tax treaties in combination with the Dutch participation exemption, the Dutch holding company offers an enormous reduction of the taxes at source.

The main advantages of the Dutch holding company regime

The Dutch holding regime, or Dutch holding company regime, does come with a lot of interesting benefits. Some of those benefits are as following:

  • There are no capital gains on the sale of shares in subsidiaries, if the Dutch participating rules apply.
  • In most cases, there is no withholding tax on dividends distributed to the Netherlands.
  • In most cases, there will be no withholding tax on dividends, distributed by the Dutch holding regime.
  • Before creating a complex international structure, it is possible to get an advance certainty from the Dutch tax authorities.
  • There are no foreign currency exchange restrictions.
  • The civil code of the Netherlands and the commercial law framework are business-friendly.
  • There is an excellent infrastructure and easy access to the financial markets.
  • To prevent abuse, there are some very strict laws. This means that anyone who incorporates here, has a lot of credibility.
  • The tax regime is favorable, compared to most other countries in the EU.
  • All costs are moderate.

We are aware of the fact that this is a lot of complicated information. So, if you have any questions regarding the Dutch holding company regime, or the Dutch holding regime, feel free to contact our us. We can help you out with any questions regarding the subjects stated above.