A ZZP or a BV?
Contrary to what other online resources may say, most DAFT applicants choose to set up a sole proprietorship (ZZP), as the setup and administration are simpler than that of a BV. A ZZP structure is ideal for freelancers, digital nomads and solo entrepreneurs who want to minimize startup costs while benefiting from various tax advantages, such as the Small Business Scheme (‘KOR’) and the Tax Relief for New Companies Program. However, unlike a BV, a ZZP does not offer liability protection or access to the 30%-ruling tax advantage.
For the 30%-tax ruling, a BV acts as your ‘employer’, which means payroll taxes are due. This should be arranged before you move to The Netherlands. The ruling provides a tax-free allowance equal to 30% of your gross salary for up to 5 years - effectively reducing your taxable income to 70% for the first 5 years. This can result in significant tax savings, especially for businesses with higher revenues and payrolls.
To ensure that payroll taxes do not exceed these tax savings, the BV structure becomes financially worthwhile if you are confident in earning more than €70,000 annually, otherwise the ZZP structure might be an easier route.
Have more questions? Need more help? Schedule a one-hour consultation with Attorney Stephan Roelofs today.
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Consultation with Attorney Stephan Roelofs
To learn more about how we can help and support you in preparing and filing for the DAFT residence permit, please contact Mr. Roelofs for a one-hour consultation.