FAQs: Minimum Director's Salary Requirements for a BV in The Netherlands

1. What are the minimum director’s salary requirements?

• A Director-General (DGA) with a significant share (>5%) must receive the higher of: comparable job salary, the highest company employee's salary, or €56,000 (2024).

1. How can I avoid paying the minimum director’s salary?

• Options include requesting a lower salary level from the Tax Authorities, performing “zero” salary payments with year-end adjustments, or appointing a holding company as director. We recommend the second option, but consult an accountant first. Our team includes a qualified accountant.

1. Which salary components count towards the minimum requirement?

• The total includes gross salary, bonuses, holiday allowances, benefits, pension schemes, and company cars.

1. What is the DGA salary for 2024?

• The minimum DGA salary for 2024 is set at €56,000, reflecting an inflation adjustment from 2023’s €51,000.

1. Why is there a minimum salary requirement?

• To balance the tax disparity between highly-taxed salaries and lower-taxed dividends, ensuring a fair amount of salary is taxed before dividend distribution.

1. How do the 30% ruling and minimum salary requirements relate?

• The 30% ruling's minimum (circa €46,107 in 2024) is lower than the DGA requirement, so adhering to the DGA minimum covers both.

1. What additional costs apply to a €56,000 salary?

• Employer taxes are generally included in the DGA’s monthly taxes. Opting out of employment insurance can reduce premiums, subject to shareholder control.

1. What should be avoided if the minimum salary requirement isn’t met?

• Avoid disbursing dividends, entering large personal loans, or running a high current account deficit with the BV.

1. Does the minimum salary requirement apply to sole proprietorships (ZZP)?

• No, this requirement is specific to BVs.

1. What if I appoint a holding company as director?

• This changes the setup to a management agreement with a flat fee, not subject to DGA salary requirements. The minimum applies in the holding as usual.

1. Does the requirement apply to directors living abroad?

• It doesn’t apply to directors who are tax residents in countries with a Dutch double-taxation treaty, except for Belgium.

1. What is the net income from a €56,000 salary?

• Use an online calculator to estimate net income from this salary or refer to an accountant who manages payroll.

1. Can I reduce the salary for part-time work?

• Yes, the minimum requirement can be adjusted pro rata for part-time directors.

1. Can you assist with DGA payrolling requirements?

• Our accounting partners offer comprehensive services, including personal income tax returns.