Netherlands or United Kingdom: where should you start a business?
The Netherlands ranks higher in the index, 10 against 16. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Taxable profit up to €200,000 is taxed at 19% and profit above it at 25.8%, rates that have applied from 2023 to 2026. VAT is 21%.
Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%.
Set-up
A BV is formed by a civil-law notary, with fees the government puts at €500 to €1,500, and registration costs €85.15. No standard time is published.
Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50.
On the ground
Official pages state no residence requirement for directors. A director living abroad is registered with a legalised passport copy and proof of address.
No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital.
Ownership
Public access ended on 16 July 2025, according to law firm reports. Access is now limited to authorities and obliged entities such as gatekeepers.
The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld.
Residence
The start-up permit requires a facilitator and lasts at most one year, after which a points-based self-employed permit can follow. US nationals have a treaty route.
Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement.
Living and working
Currency
Euro.
Pound sterling.
Time zone
UTC+1, and UTC+2 in summer.
UTC+0, and UTC+1 in summer.
Personal tax
Income above €78,426 is taxed at 49.50% (2026, below pension age); investments are taxed at 36% on a deemed return.
Income over £125,140 is taxed at 45% (2026/27, outside Scotland); inheritance tax is 40% above £325,000, and capital gains tax applies.
Language
The Netherlands Commercial Court works in English and issues its judgments in English.
English is used in practice, and Welsh can be spoken in legal proceedings in Wales.
Flights
From London, British Airways reaches New York in 8 hrs 10 mins, Dubai in 6 hrs 50 mins and Singapore in about 12 hrs 45 mins.
Netherlands vs United Kingdom: common questions
The Netherlands: Taxable profit up to €200,000 is taxed at 19% and profit above it at 25.8%, rates that have applied from 2023 to 2026. VAT is 21%. The United Kingdom: Profits of £50,000 or less are taxed at 19%, with marginal relief up to £250,000 and 25% above that. VAT is charged at 20%.
The Netherlands: A BV is formed by a civil-law notary, with fees the government puts at €500 to €1,500, and registration costs €85.15. No standard time is published. The United Kingdom: Online registration costs £100, and Companies House usually registers a company within 24 hours. The annual confirmation statement costs £50.
The Netherlands: Official pages state no residence requirement for directors. A director living abroad is registered with a legalised passport copy and proof of address. The United Kingdom: No director or secretary needs to live in the UK, but the registered office must be at an appropriate UK address. There is no minimum capital.
The Netherlands: Public access ended on 16 July 2025, according to law firm reports. Access is now limited to authorities and obliged entities such as gatekeepers. The United Kingdom: The register of people with significant control is public and free to search. Home addresses and full dates of birth are withheld.
The Netherlands: The start-up permit requires a facilitator and lasts at most one year, after which a points-based self-employed permit can follow. US nationals have a treaty route. The United Kingdom: Owning a company gives no right to live in the UK. An owner from abroad needs a visa such as the Innovator Founder visa, which requires an endorsement.
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