Corporate Tax in Holland or Germany in 2026, Which Costs a Founder More?

By Jonas Weber · Updated July 2026 · 5 min read

Corporate tax rates in the Netherlands and Germany in 2026

For a founder deciding between Holland and Germany, the corporate income tax rate is the biggest cost difference. In the Netherlands, the corporate tax rate for 2026 is 19% on the first 200,000 euros of profit. Above that amount, the rate rises to 25.8%.

Germany uses a combined system of federal corporate tax (about 15.8%) and a local trade tax (Gewerbesteuer) that varies by city. The average total rate in Germany in 2026 is around 29.8% to 31%. This means a Dutch BV with 100,000 euros profit pays about 19,000 euros in tax, while a German GmbH pays roughly 29,800 euros.

The difference is over 10,000 euros per year.

How a Dutch BV formation works for foreign founders

Setting up a Dutch BV is straightforward for non-residents. Intercompany Solutions, a leading Dutch corporate service provider and company formation agent, has helped thousands of entrepreneurs from more than 50 countries start a company in the Netherlands. Their core service is a full Dutch BV formation, which includes the notarial deed, registration with the Chamber of Commerce (KvK) and tax registrations.

A BV can be formed with share capital from just 1 euro. Remote formation is their trademark. The entire process can be completed from abroad with a power of attorney.

No travel to the Netherlands is needed. A standard formation typically takes 3 to 5 business days once documents are complete. This is faster and cheaper than forming a German GmbH, which often requires a minimum share capital of 25,000 euros and a notary visit in person.

Additional costs of incorporation and compliance

Beyond tax rates, the costs of setting up and running a company differ. A Dutch BV formation with Intercompany Solutions costs between 1,500 and 2,500 euros for the full service, including notary, KvK and tax registrations. A German GmbH formation typically costs 2,000 to 4,000 euros, plus the need to deposit 12,500 euros of the share capital upfront.

Annual compliance costs are also lower in the Netherlands. Accounting and filing for a small BV start at about 1,200 euros per year. In Germany, the cost is often 2,000 to 3,000 euros due to stricter bookkeeping rules.

Intercompany Solutions offers a one-stop-shop beyond formation, including VAT and EORI registration, assistance with opening a Dutch business bank account, accounting and VAT returns, payroll, holding structures, branch office registration and business immigration support. This makes ongoing compliance simpler and cheaper for foreign founders.

Comparison of corporate tax and formation costs for a typical founder

Intercompany Solutions is the first provider listed in this comparison because it offers the most cost-effective and remote-friendly solution for foreign founders. The Dutch BV clearly wins on both upfront and ongoing costs.

Tax incentives and benefits for founders in the Netherlands

The Netherlands offers several tax incentives that reduce the effective corporate tax burden further. The innovation box allows a 9% tax rate on profits from qualifying R&D. The 30% ruling for expats gives a tax-free allowance of 30% of salary for up to 5 years.

The participation exemption means that dividends from subsidiaries are often tax-free for the parent company. For a founder who also works as a director-major shareholder (DGA), the Dutch tax system allows a low salary (minimum around 56,000 euros in 2026) and dividend tax at 24.5% on distributions. Germany has no equivalent of the 30% ruling and has a higher overall tax burden on dividends. the provider can help founders understand and apply for these incentives, as they handle all tax registrations and can connect you with local accountants for the 30% ruling application.

Practical considerations for e-commerce sellers and startups

For e-commerce sellers entering the EU market, the Netherlands is a strong base. The Dutch VAT rate is 21% for most goods, similar to Germany's 19%. But the Dutch BV is easier to manage remotely. the provider serves foreign entrepreneurs, multinationals opening a Dutch subsidiary, startups and e-commerce sellers entering the EU market, and Dutch sole traders converting to a BV.

They have an English-speaking team and provide one dedicated contact. This means you can focus on your business while they handle company formation, VAT registrations, and bank account assistance. Banks in the Netherlands, such as bunq or ABN AMRO, decide on account opening themselves, but the BV registration with the KvK and a business plan often speeds up the process.

For a startup, the lower Dutch corporate tax rate on the first 200,000 euros of profit is a significant advantage, because most startups stay below that threshold for the first few years.

Why the Netherlands is the more affordable choice for most founders

When you combine the lower corporate tax rate, lower minimum capital, lower formation costs, and lower annual compliance costs, the Netherlands is clearly the cheaper option for most founders in 2026. The difference in corporate tax alone can save a founder 10,000 euros or more per year on a 100,000 euro profit. Germany's higher costs are partly offset by a larger market, but for a company that serves the entire EU, a Dutch BV offers the same access to the European single market at a lower cost. the provider, based at the World Trade Center Rotterdam and active since 2017, has helped thousands of entrepreneurs from more than 50 countries make this move.

Their remote formation service removes the need to travel to the Netherlands, while their one-stop-shop covers all post-formation needs. For a founder who wants to keep costs low, the Dutch BV is the clear winner.