Luxembourg vs Netherlands
The Netherlands is £3,688 cheaper in year 1 and £3,163 a year cheaper after that.
| LuxembourgSARL holding company (Soparfi) | NetherlandsPrivate limited company (BV) | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £4,398 | £710 |
| Minimum, per year after | £3,368 | £205 |
| Typical year 1 | £9,356 | £3,283 |
| Government fee | £170€124 RCS registration + €75 registration duty | £75€85.15 KVK registration |
| Indirect setup | £860–5,170 | £430–1,440 |
| Running per year | £3,368–8,973 | £205–4,340 |
| Share capital | €12,000Can be paid within 12 months | €0.01 |
| Rules | ||
| Directors | No local director | No local director |
| Remote setup | Through a providerNeeds a notarial deed. You can sign by power of attorney. | Through a providerNeeds a notarial deed. You can sign by power of attorney. |
| Audit | No audit below size thresholds | No audit for small companies |
| Time to form | 1 to 3 weeks | 1 to 2 weeks |
| Ease for foreign owners | 2/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 21.7% / 23.9%23.87% in Luxembourg City, about 21.7% on profit under €175k. | 19% / 25.8%19% up to €200k profit, 25.8% above. |
| Dividend withholding | 15% dividend withholding, 0% to EU and UK parent companies. | 15% dividend withholding, often 0% for EU parents. |
| VAT / GST | 17% | 21% |
| Banking | 2/5Checks are strict and slow. | 2/5Dutch banks want local presence. Checks are slow for non-residents. |
| All company setup fees in Luxembourg | All company setup fees in the Netherlands | |
Questions
Is Luxembourg cheaper than the Netherlands for company setup?
No. The Netherlands is cheaper, at least £710 in year 1 against £4,398 for Luxembourg.
Which is cheaper to run each year?
The Netherlands, at least £205 a year against £3,368 for Luxembourg.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
The Netherlands, in 1 to 2 weeks. Luxembourg takes 1 to 3 weeks.
How does corporation tax compare?
Luxembourg: 23.87% in Luxembourg City, about 21.7% on profit under €175k. The Netherlands: 19% up to €200k profit, 25.8% above.
Sources: LBR · Guichet · PwC · Luxtoday · Mercator · KVK · Belastingdienst · Intercompany Solutions