Netherlands VS. Estonia

[kntucko]

Hello,

I am looking for the easiest as far as requirements and cheapest way to set up a company in the EU. I have been given two options so far Netherlands vs. Estonia. Does anyone have any suggestions?

 

[Risehigh]

Joining this conversation since I like the Netherlands a lot and looking to expand business there.

 

[FinTech Avenger]

I'd personally prefer Estonia over Netherlands for:
1) easy company formation and very moderate costs, especially if you have e-residency card;
2) interesting taxation system with wide possibilities for optimisation;
3) accounting services available at fraction of what it would it cost in NL

 

[lrotter]

If you need to deal with the digital products/services both are good.
If you are foreigner and have no Estonia e-residency there is not much difference in the process of opening the company, public records, UBO reporting etc - both are in the EU so the legislation is pretty much the same...
If you do IT projects - Netherlands have very good tax opportunities. Both of these countries are strict in terms of opening bank accounts for non-residents, but I would say Netherlands have more option for classical banks.

 

[lavel]

If you do IT projects - Netherlands have very good tax opportunities.

do you have any link or more information to what that includes?

 

[AltMain]

Hello,

I am looking for the easiest as far as requirements and cheapest way to set up a company in the EU. I have been given two options so far Netherlands vs. Estonia. Does anyone have any suggestions?

Firstly you should understand for what you will need a bank account.
Even with local ID it's not so easy to open bank account. You can register a company with a few hours and can't open account for it.
My practice says even local people opens account in KZ or BY ( during last year ) for operations. Local banks don't allow to work with many companies and countries, control all your operations like proctologist specialists. Be careful

 

[lrotter]

do you have any link or more information to what that includes?

you can check on it by simply googling, there is innovation box which might apply. 7% tax rate for attributable profits. if you can consider your IT as innovation that is developed inside Netherlands you can benefit from tax regime

 

[kranj99]

I'm not 100% sure, but I previously understood that if you set up a BV in the NL (i.e. a Dutch LLC of sorts), the director is subject to a minimum salary of 45K EUR - not sure how this works in practical terms though...

 

[EuroKiss]

How the taxation really works in Netherlands? I know it is a tax heaven, but taxes there are extremely high, so a lot of confusion searching in Google. I am really interested since opening a BV and accounting are both relatively simple and way cheaper than in other EU western countries.

 

[Mr Gus]

Only for a very small group of big international operating countries the Netherlands is used in structures, it has to do with royalty structures.

I don't know what type of business you are running but if you let the profit be taxed in the Netherlands your are taxed at 15% for the first 250K and 25% over anything above that. And if you are a resident if the Netherlands you are also subject to 26.9% in dividend tax (which still remains even if you leave the country).

And you are also subject to a 46K minimum salary, and if you are the only one employed on paper that could also turn into 80% of the profits.

Malta, Cyprus are way more interesting in Europe.