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David VanAssche

BV with 30% Ruling (C-Corp Equivalent in USA) vs. ZZP (Equivalent of 1099 in USA): Your Comprehensive FAQ Guide



Deciding between a BV (Besloten Vennootschap) with the 30% ruling and a ZZP (Eenmanszaak) setup in The Netherlands can be complex. This guide answers key questions to help you understand the differences and make an informed choice.


BV Setup with 30% Ruling FAQs:

  1. What's unique about the BV setup under the 30% ruling?

  • A BV under the 30% ruling requires incorporation as a foreign shareholder with a foreign address. This involves additional notarial identification and KYC work.

  1. Can the 30% ruling be applied in a ZZP setup?

  • No, the 30% ruling requires an employment contract, which only a BV can provide.

  1. What happens to the 30% ruling if I become unemployed?

  • The 30% ruling expires 3 months post-employment. It’s crucial to start a new ruling application within this period.

  1. Does nationality affect the 30% ruling?

  • No, nationality is irrelevant for the 30% ruling; it only impacts residence and work permits.

  1. When can I start working for clients in a BV + 30% setup?

  • You can sign contracts from the BV's registration date, invoice clients once you have a VAT number, and pay yourself after getting your BSN number.

Tax and Salary FAQs:

  1. How is salary calculated under the BV + 30% ruling?

  • Deduct estimated annual costs from your revenues. If the remainder is above €59,932, you can apply the 30% ruling.

  1. What about profit taxes in a BV?

  • Profit taxes apply only to profits after salary payments. Maximizing salary under the 30% ruling usually avoids profit taxes.

Freelancing and Employment FAQs:

  1. Can I maintain the 30% ruling if I switch to regular employment?

  • Yes, but it requires a new application without the need to be hired from abroad.

  1. How do freelancing requirements differ between a BV and a ZZP?

  • Requirements like multiple clients and minimum income apply only to ZZP setups, not to BV freelancers.

  1. Should I choose salary or dividend payments in a BV + 30% setup?

  • Salary is usually more tax-efficient than dividends under the 30% ruling.

  1. Do I need to prove my income to the Tax Authorities for the 30% ruling?

  • No, the 30% ruling is applied to your director's salary in the BV, evident in your income tax returns.

Additional Benefits of a BV + 30% Ruling:

  • Relocation Costs: Reimbursement for relocation expenses is possible as business costs in the BV.

  • Schooling Costs: Expenses for children’s schooling at expat schools can be covered.

  • Driver’s License Swap: Swap your foreign license for a Dutch one without additional exams.


Choosing between a BV with the 30% ruling and a ZZP setup depends on your business goals, tax situation, expected revenues/profits and personal circumstances. Understanding these FAQs will guide you in making the best decision for your entrepreneurial journey in The Netherlands. You'll likely have questions and choose to hire an expert to assist. Book a Call with us to discuss this and the other services we offer to American Expats moving to, within or out of The Netherlands.

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