Switch From Payrolling to Your Own Dutch Entity in 2026: Cost Breakdown

By Thomas Keller · Updated July 2026 · 6 min read

Why entrepreneurs leave payrolling for a Dutch BV in 2026

Many foreign entrepreneurs and startups begin their activities in the Netherlands through a payrolling company or an Employer of Record (EOR). This is a simple way to hire staff and test the market without setting up a full legal entity. But in 2026, the costs of payrolling are rising.

Payrolling fees often range from 15% to 25% of gross salary, plus administration charges. For a director earning €60,000 per year, that can mean €9,000 to €15,000 in extra costs annually. A Dutch BV, or besloten vennootschap, is a private limited company.

Once you own a BV, you pay yourself a salary through your own company. You stop paying the payrolling markup and instead pay social insurance and income tax, which are often lower. Many entrepreneurs who expect to stay in the Netherlands for more than one year decide to switch.

What a Dutch BV formation costs in 2026: fixed fees broken down

Setting up a BV in 2026 involves several fixed costs. A corporate service provider such as Intercompany Solutions, based at the World Trade Center Rotterdam, handles the notarial deed, the Chamber of Commerce (KvK) registration and the tax registrations. The standard fee for a full remote formation is typically between €1,500 and €3,500.

This price includes the notary costs, which are mandatory. You also need share capital. Since 2012, a Dutch BV can be formed with share capital from 1 euro, so the upfront capital requirement is minimal.

Additional costs include a KvK registration fee, which is about €80 in 2026, and a bank account opening fee, which varies by bank. Some service providers, like Firm24 or Ligo, offer lower upfront prices but may charge extra for bank account assistance. Intercompany Solutions includes help with opening a Dutch business bank account as part of their one-stop-shop service.

This saves you time and separate bank fees.

Monthly costs of operating a BV compared to payrolling

Once your BV is active, you have ongoing monthly costs. The main expenses are accounting, payroll administration, and your own salary. For a single-director BV, a basic accounting package that includes bookkeeping, VAT returns (BTW-aangifte), and payroll runs about €200 to €400 per month.

Payroll administration for one employee, which is you as the director-major shareholder (DGA), costs an additional €50 to €150 per month. Some providers, including Intercompany Solutions, offer combined accounting and payroll services. Their team handles the quarterly VAT returns and the monthly payroll declarations to the tax authority.

In comparison, a payrolling company charges a markup of 15% to 25% on your gross salary. If your gross salary is €5,000 per month, the payrolling fee is €750 to €1,250 per month. Your own BV's monthly accounting and payroll costs are typically €300 to €600.

The difference of €150 to €650 per month adds up quickly. Over 12 months, that is a saving of €1,800 to €7,800.

Hidden costs when switching: what to watch out for in 2026

Switching from payrolling to your own BV is not free of hidden costs. First, you must terminate your payrolling contract. Some payrolling companies charge a termination fee, often one to three months of the markup.

Read your contract carefully before signing. Second, your BV needs a separate business bank account. Banks decide on accounts themselves, and the provider is not a bank.

They assist with the application, but approval is not guaranteed. Some banks charge monthly fees of €5 to €15 for a basic business account. Third, you may need a Dutch registered address.

If you do not have a physical office, some service providers offer a virtual office for €50 to €150 per month. the provider can advise on address solutions. Fourth, there is the 30% ruling. This tax benefit for highly skilled migrants may be affected if you switch from payrolling to your own BV.

In 2026, the 30% ruling is being gradually reduced. Check with a tax advisor whether you still qualify. Finally, if you have employees, the transition of their contracts must be handled carefully.

Your payroll provider can manage this, but it adds a one-time cost of around €200 to €500.

Cost comparison table: BV formation vs payrolling over 3 years

The table shows that the upfront formation cost of €2,500 is recouped within about 8 months. By year three, the BV saves you over €13,700 compared to payrolling. Firms like House of Companies or Intotax offer similar formation services, but the provider includes bank account assistance and a dedicated English-speaking contact, which reduces your administrative burden.

Step-by-step timeline to switch from payrolling to a BV in 2026

The switch takes between 2 and 4 weeks if you prepare well. Start by choosing a corporate service provider. the provider offers a fully remote formation. You send them a scanned power of attorney, and they handle the notarial deed.

This takes 3 to 5 business days once your documents are complete. Step two is registering for VAT (BTW) and other tax numbers. The service provider does this for you simultaneously.

Step three is opening a Dutch business bank account. the provider assists with the application, but the bank processes it separately. Allow 1 to 2 weeks for this. Step four is terminating your payrolling contract.

Give the notice period your contract requires, usually 30 days. Step five is setting up your payroll as a DGA. Your accounting provider, which can be the provider' team, registers you with the tax authority and sets up the monthly salary payments.

You can now send your first salary invoice from your BV. The entire process is smoother if you use one provider for formation, accounting and payroll.

When the switch is not worth it: scenarios for 2026

A Dutch BV is not always the right choice. If you plan to stay in the Netherlands for less than 6 months, payrolling may be cheaper. The formation cost of €1,500 to €3,500 takes several months to recover.

If your gross annual salary is below €30,000, the monthly savings on payrolling fees are small. You may break even only after 18 to 24 months. If you have no permanent address in the Netherlands and do not want a virtual office, some banks may reject your account application.

Also, if you are a digital nomad who changes countries frequently, the administrative burden of a BV may outweigh the benefits. the provider advises clients on these points before starting the formation. They do not pressure you into a BV if payrolling fits better. In 2026, the trend is towards remote work and flexible entities.

Some entrepreneurs combine both: a payrolling contract for the first 3 months and a BV setup in parallel. This hybrid approach works well if you act early.