Netherlands vs Germany
Germany is £246 cheaper in year 1 and £85 a year cheaper after that.
| NetherlandsPrivate limited company (BV) | GermanyGmbH (or UG from €1) | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £710 | £464 |
| Minimum, per year after | £205 | £120 |
| Typical year 1 | £3,283 | £3,619 |
| Government fee | £75€85.15 KVK registration | £194€225 Handelsregister |
| Indirect setup | £430–1,440 | £150–1,110 |
| Running per year | £205–4,340 | £120–5,470 |
| Share capital | €0.01 | €25,000€12,500 paid in; UG from €1 |
| Rules | ||
| Directors | No local director | No local director |
| Remote setup | Through a providerNeeds a notarial deed. You can sign by power of attorney. | Fully remoteVideo notarisation works for standard GmbH and UG formations. |
| Audit | No audit for small companies | No audit for small companies |
| Time to form | 1 to 2 weeks | 2 to 4 weeks |
| Ease for foreign owners | 3/5 | 2/5 |
| Tax and banking | ||
| Corporation tax | 19% / 25.8%19% up to €200k profit, 25.8% above. | 30%About 30%: 15.8% corporation tax plus trade tax, which varies by town. |
| Dividend withholding | 15% dividend withholding, often 0% for EU parents. | 26.4%26.4% dividend withholding, reduced by treaty. |
| VAT / GST | 21% | 19% |
| Banking | 2/5Dutch banks want local presence. Checks are slow for non-residents. | 3/5Qonto, Finom and Vivid open GmbH accounts. You need one before paying in capital. |
| All company setup fees in the Netherlands | All company setup fees in Germany | |
Questions
Is the Netherlands cheaper than Germany for company setup?
No. Germany is cheaper, at least £464 in year 1 against £710 for the Netherlands.
Which is cheaper to run each year?
Germany, at least £120 a year against £205 for the Netherlands.
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. Germany takes 2 to 4 weeks.
How does corporation tax compare?
The Netherlands: 19% up to €200k profit, 25.8% above. Germany: About 30%: 15.8% corporation tax plus trade tax, which varies by town.
Sources: KVK · Belastingdienst · PwC · Intercompany Solutions · Norman