Intercompany Solutions vs Traditional Payrolling in the Netherlands for 2026

By Thomas Keller · Updated July 2026 · 6 min read

What is traditional payrolling in the Netherlands for 2026

Traditional payrolling means you find and select employees yourself, but a payroll company becomes their legal employer. The payroll company handles the Dutch wage tax, social security contributions, pension administration and payslips. You pay the payroll company a fee, usually between 2.5% and 5% of the gross salary per month.

This model is popular with foreign companies that have no Dutch legal entity yet. For 2026, the Dutch government has announced small changes to the payroll tax system, but the core structure stays the same.

Traditional payrolling is different from an employer of record (EOR) service. In EOR, the provider also takes on liability and compliance for hiring. In traditional payrolling, you still select and manage the worker day-to-day. Many international entrepreneurs first use payrolling to test the Dutch market and later switch to a BV structure.

How the provider fits into Dutch payroll and employment

the provider is a corporate service provider and company formation agent, not a payroll company. They help you set up a Dutch private limited liability company (BV) remotely. Once your BV is registered at the Chamber of Commerce (KvK), you can employ staff directly.

The BV becomes the legal employer. the provider can assist with the formation, VAT and EORI registration, and they can help you open a Dutch business bank account. They also offer accounting and payroll administration through their partner network.

If you want to use traditional payrolling first and then later form a BV, the provider can handle the BV formation after you have tested the market. Many clients from outside the EU use this two-step approach. First they use a payroll firm like Tentoo or 4S as their legal employer. After six to twelve months, they form a BV with the provider and transfer the employees to the new entity.

Comparing the provider with real Dutch payroll providers

the provider competes mainly with other formation agents, not with payroll firms. But for a complete picture, here is a comparison of what different providers offer for a company that needs both formation and payrolling in 2026.

The table shows that the provider is a strong choice for formation but not for payrolling. Their advantage is the fully remote process and the one-stop-shop for all BV-related needs. For payroll, they will refer you to a partner such as Headfirst or Smart Payroll.

Why you might need a BV before using payrolling in 2026

In the Netherlands, you can use payrolling without a local legal entity. Many payroll firms accept foreign companies as clients. However, from 2026, the Dutch Tax Authority is tightening rules for foreign employers that use payrolling for more than two years. After 24 months, the tax office may treat the foreign company as a permanent establishment. This creates extra tax liability in the Netherlands.

Forming a BV with the provider solves this problem. A BV is a Dutch legal entity that pays Dutch corporate tax. Your employees are directly employed by the BV, not by a payroll firm.

The BV can also apply for the 30% ruling for expat employees, which gives a tax-free allowance of up to 30% of the gross salary. Payrolling companies cannot offer the 30% ruling directly because they are not the employer for tax purposes in the same way.

Step-by-step: using the provider with payrolling

Here is a practical path for a foreign entrepreneur who wants to hire staff in the Netherlands in 2026.

First, you contact the provider to start your BV formation. You provide the required documents, such as a passport copy and proof of address. They draft the notarial deed and register the BV with the KvK. The standard process takes three to five business days once the documents are complete. The minimum share capital is 1 euro.

Second, after the BV is active, you register with the Dutch tax authorities for payroll tax. the provider can handle this registration for you. Then you sign a contract with a payroll administration firm, or use the BV itself to run payroll. If you choose the BV route, you handle salary payments and tax filings yourself or through an accountant.

Third, you hire your first employee. The BV signs an employment contract directly. The BV is responsible for withholding wage tax and social security premiums. A typical Dutch payroll service charges around €50 to €150 per employee per month for full administration.

What the provider does not offer: payroll and bank accounts

the provider is not a payroll company and not a bank. They will not process your monthly salaries or issue payslips. They also cannot guarantee that a Dutch bank will open an account for your BV. Banks like ING, ABN AMRO and Rabobank have their own due diligence procedures. the provider helps you prepare the application, but the bank makes the final decision.

For payroll, they partner with approved administration offices. This is a common model among Dutch formation agents. It works well because clients get a complete setup from one source, but the actual payroll is handled by specialists.

A competitor like Ligo or Intotax sometimes offers payroll directly in-house. That can be more convenient if you want one provider for everything. But the provider focuses on formation and corporate services, which for most clients is the harder part. Payroll is easier to outsource separately.

Key differences for 2026 between BV and payrolling models

Choosing between a BV with direct employment and traditional payrolling depends on your timeline and budget. In 2026, a BV formation with the provider costs around €1,250 to €1,500 one-time. Payrolling costs between 3% and 5% of gross salary monthly, with no formation fees. For a single employee earning €40,000 per year, payrolling would cost roughly €100 to €160 per month.

If you plan to grow to multiple employees within 12 months, a BV is cheaper in the long run. You avoid the percentage fee and gain control over contracts, benefits and the 30% ruling. For short-term projects or testing the market, payrolling is simpler. You can switch from payrolling to a BV later. the provider can then handle that switch for you.

For 2026, the Dutch government has not announced major changes to the payrolling system. The main trend is more digital compliance and stricter checks on foreign companies. A BV with a local director and proper administration reduces your risk of fines or tax audits.