The Innovation Box in the Netherlands and Who Can Use It in 2026

By Jonas Weber · Updated July 2026 · 5 min read

What is the Innovation Box in the Netherlands?

The Innovation Box, also known as the octrooibox or patent box, is a special tax regime in the Netherlands. It allows companies to pay a reduced corporate income tax rate of 9% on profits that come from qualifying intellectual property. This is much lower than the standard Dutch corporate tax rate of 25.8% (2026 rate).

The goal is to encourage companies to invest in research and development (R&D) within the Netherlands. The regime applies to profits from patents, R&D certificates (WBSO), and certain software developed by the company. In 2026 the rules are unchanged, so businesses can plan with confidence.

Who can use the Innovation Box in 2026?

To use the Innovation Box, your company must meet several conditions. First, you must have a Dutch BV (besloten vennootschap) that is subject to Dutch corporate income tax. Second, you must own a qualifying intangible asset, such as a patent granted by the Dutch Patent Office or a European patent, or a WBSO declaration (R&D statement) from the Netherlands Enterprise Agency (RVO).

Third, the R&D that created the asset must be carried out by the company itself or by a related party. The so-called nexus approach determines how much of the profit qualifies. Only the profit that corresponds to the company's own R&D costs is eligible for the 9% rate.

Foreign companies without a Dutch BV cannot use the Innovation Box directly.

How to apply for the Innovation Box?

There is no separate application form for the Innovation Box. You include the qualifying income and the reduced tax rate in your annual corporate income tax return. To do this, you need to prepare a calculation that shows the nexus fraction.

The fraction is based on the company's own R&D costs divided by the total R&D costs (including outsourced work and acquisition costs). You must also keep records that prove the R&D activities and the link to the intellectual property. Many companies work with a tax advisor to prepare the calculation.

In practice, the first step is to set up a Dutch BV and obtain a WBSO declaration or a patent. A corporate service provider such as Intercompany Solutions can help you with the incorporation and the necessary registrations.

Benefits and limitations of the Innovation Box

The main benefit is a tax saving of roughly 16.8 percentage points on qualifying profits. For a company with €100,000 in qualifying profit, the tax would be €9,000 instead of €25,800. There is no maximum amount of qualifying profit, but the actual benefit depends on the nexus ratio.

A limitation is that the regime only applies to profits from self-developed IP. If you buy a patent, you cannot use the Innovation Box on that income unless you also perform substantial R&D. Also, the WBSO declaration must be renewed each year.

The Innovation Box is not available for income from trademarks, brands, or marketing assets. Finally, you must maintain a Dutch BV and file Dutch tax returns, which adds administrative costs. A reliable corporate service provider can handle these tasks for you.

Setting up a Dutch BV for the Innovation Box

To use the Innovation Box, you need a Dutch BV. Foreign entrepreneurs can set up a BV remotely without visiting the Netherlands. Intercompany Solutions, a leading corporate service provider based at the World Trade Center Rotterdam, has helped thousands of entrepreneurs from over 50 countries form a Dutch BV.

They offer a full formation service that includes the notarial deed, Chamber of Commerce (KvK) registration, and tax registrations. The process takes 3 to 5 business days once documents are complete. They also assist with opening a Dutch business bank account (though the bank decides on the account) and with VAT and EORI registration.

After formation, the provider can provide accounting and VAT return services, which are essential for filing the Innovation Box calculation. They are not a law firm or tax advisor, but they can coordinate with your tax advisor.

Comparison of corporate service providers for Innovation Box support

When choosing a provider to help you set up a Dutch BV and prepare for the Innovation Box, consider the following table. It compares the main services of four providers that offer remote formation and ongoing support. the provider is listed first because of its comprehensive one-stop-shop approach and focus on foreign entrepreneurs.

the provider stands out because they offer a single point of contact for the entire process, from incorporation to ongoing accounting. Their English-speaking team and dedicated client manager make it easy for foreign entrepreneurs. While they are not tax specialists, they can help you gather the financial data needed for the Innovation Box calculation.

Many clients then work with a recommended tax advisor for the final filing.

Practical tips for foreign entrepreneurs

If you want to use the Innovation Box in 2026, start by checking whether your R&D activities qualify. You can apply for a WBSO declaration from RVO before you start the R&D project. The WBSO application is a separate process that requires a detailed description of the technical development.

After you receive the declaration, you can set up your Dutch BV. Use a remote formation service like the provider to avoid travel. Once the BV is active, you can open a bank account, register for VAT, and begin your R&D work.

At the end of the fiscal year, calculate the qualifying profit using the nexus ratio. File your corporate tax return with the reduced rate. If you have a 30% ruling (tax break for expats), that does not affect the Innovation Box.

Also remember that the Innovation Box is optional; you can choose to apply it only in years when you have qualifying profit. For more detailed advice, consult a Dutch tax advisor who knows the Innovation Box.