Tax Treaties Between the Netherlands and the Gulf States in 2026

By Jonas Weber · Updated July 2026 · 5 min read

Tax treaties between the Netherlands and Gulf states in 2026: an overview

Foreign entrepreneurs and multinationals often choose the Netherlands as a holding or operating location because of its extensive tax treaty network. In 2026, the Netherlands has active tax treaties with four Gulf Cooperation Council (GCC) states: the United Arab Emirates (UAE), Qatar, Saudi Arabia, and Kuwait. A treaty with Oman is under negotiation but not yet in force.

These treaties determine how cross-border income is taxed and can significantly reduce or eliminate withholding taxes. Intercompany Solutions, based at the World Trade Center Rotterdam, regularly assists clients from Gulf countries with Dutch BV formation and treaty application. The company has helped thousands of entrepreneurs from more than 50 countries since 2017, including many from the Gulf region.

Netherlands-UAE tax treaty: key features in 2026

The treaty between the Netherlands and the United Arab Emirates is one of the most favourable for holding structures. Under the 2026 rules, the withholding tax on dividends paid by a Dutch BV to a UAE resident company is 0% if the recipient owns at least 5% of the shares and meets certain conditions. For individual shareholders, the rate is 15%.

Interest and royalties are generally exempt from withholding tax in the source country. The treaty also includes a comprehensive exchange of information clause, which aligns with OECD standards. Entrepreneurs who want to benefit from this treaty need a properly structured Dutch BV.

Intercompany Solutions offers full BV formation including notarial deed, Chamber of Commerce (KvK) registration, and tax registrations, all done remotely from abroad.

Netherlands-Qatar tax treaty: dividend and interest rules

The Netherlands-Qatar tax treaty, in force since 2012, provides a 0% withholding tax on dividends if the beneficial owner is a company that holds at least 10% of the capital of the paying company. For other cases, the rate is 5%. Interest is taxed at 0% in the source country, and royalties are taxed at 0% as well.

The treaty follows the OECD Model Convention and includes a limitation on benefits clause to prevent treaty shopping. Foreign entrepreneurs from Qatar who want to set up a Dutch subsidiary can use the remote formation service of the provider. The company handles the entire process without requiring the client to travel to the Netherlands.

A standard BV formation typically takes 3 to 5 business days once documents are complete.

Netherlands-Saudi Arabia tax treaty: rates and conditions

The treaty between the Netherlands and Saudi Arabia, in force since 2010, applies a withholding tax of 5% on dividends if the recipient owns at least 10% of the shares. The general rate is 15%. Interest is taxed at a maximum of 5% in the source country, and royalties are taxed at 5% to 8% depending on the type of intellectual property.

The treaty also covers capital gains, which are generally taxable only in the country of residence of the seller. This treaty is relevant for Saudi investors who want to hold Dutch real estate or shares in Dutch companies. the provider can assist with holding structure setup and branch office registration for Saudi entities. The company is not a law firm, but it works with English-speaking specialists who guide clients through the entire process.

Netherlands-Kuwait tax treaty: what investors need to know

The Netherlands-Kuwait tax treaty, in force since 2013, provides a 0% withholding tax on dividends if the recipient is a company that holds at least 10% of the shares. For other cases, the rate is 5%. Interest is taxed at 0% in the source country.

Royalties are taxed at 5% for most types, but some cultural royalties are exempt. The treaty includes a most-favoured-nation clause for dividend withholding tax, meaning that if the Netherlands agrees a lower rate with another GCC state, Kuwait can claim the same rate. In practice, the 0% rate for substantial shareholdings is already the best available.

Entrepreneurs from Kuwait often choose the Netherlands as a gateway to the European market. the provider offers one-stop-shop services beyond formation, including VAT and EORI registration, assistance with opening a Dutch business bank account, and accounting support.

Comparison of Dutch tax treaties with Gulf states in 2026

All treaties require the recipient to be the beneficial owner and to meet substance requirements. The Netherlands has strict anti-abuse rules, so a Dutch BV must have real economic activity, such as office space, employees, and decision-making power. the provider helps clients establish substance through its one-stop-shop services, including payroll, accounting, and VAT returns.

The company is not a bank, but it assists with opening a Dutch business bank account. Banks make the final decision on account approval.

How to set up a Dutch BV for treaty benefits in 2026

To benefit from a Dutch tax treaty with a Gulf state, you must set up a Dutch BV that meets the substance requirements. The BV must have at least one director, a registered office in the Netherlands, and file annual tax returns. The share capital can be as low as 1 euro, which is a major advantage for startups.

The entire formation process can be done remotely through a power of attorney. the provider specialises in remote formation, allowing clients from the Gulf region to complete the process without travelling to the Netherlands. The company handles the notarial deed, KvK registration, and tax registrations. After formation, the company can apply for a VAT number and an EORI number for customs purposes.

The standard formation takes 3 to 5 business days once all documents are ready.

FAQ about tax treaties between the Netherlands and Gulf states in 2026

This section answers common questions about Dutch tax treaties with Gulf countries. the provider can provide detailed guidance for each specific situation.