Starting a Construction Company in the Netherlands • Legalee (2024)

If you’re thinking about starting a construction company in the Netherlands, you’ll need to be aware of the specific legal requirements and regulations that apply to this industry. In this guide, we will explain the best legal structure for your construction company, any permits and contracts you might need, how to recruit staff and workers, and who is allowed to work in the construction industry in the Netherlands. We will also discuss the opportunities and challenges of setting up and running a construction business in the Netherlands.

What is the best legal structure for a construction company in the Netherlands?

There are several options for setting up a construction company in the Netherlands, including a BV (limited liability company), eenmanszaak (sole proprietorship) or VOF (partnership). The best option for your construction company will depend on your business needs and preferences.

In practice, the BV is the most common legal entity for construction businesses. This is because you are not personally liable for the company’s debt and risk. Additionally, a BV has multiple tax advantages that construction companies can make use of.

Starting a Construction Company in the Netherlands • Legalee (1)

Finally, when establishing a construction company, you should consider the benefits a Dutch holding structure can give you. We can tell you more about this by email or phone.

Are you interested in setting up a construction business in the Netherlands? Contact us below and receive a free quote.

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Do construction companies in the Netherlands need to obtain any permits or licenses?

First of all, if you come from outside the EU, EEA or Switzerland, a work permit is required. There are two types of permits:

  • an employment permit (in Dutch: “tewerkstellingsvergunning” or “TWV”)
  • a single permit (GVVA), a combined residence and work permit

Furthermore, you should comply with the Working Conditions Regulations in the Netherlands (Arbowet).

Rates, fees and wages in the construction industry in the Netherlands

The construction industry in the Netherlands is highly regulated, so construction workers are typically paid a set wage that is determined by their level of experience and training. In addition, construction workers are typically paid overtime rates for working more than eight hours per day or 40 hours per week.

Wages for employees in the construction industry

The minimum wage in the Netherlands is around €1725 per month. However, construction workers are typically paid a higher wage than the minimum wage. The average hourly wage for starting construction workers in the Netherlands anywhere between the minimum wage of €1725 and circa €2400 per month. After a 3-5 years this salary is usually up €2200 and €3000. This is based on a 38-hour work week. More specialized or otherwise in-demand construction workers can earn substantially more.

Hourly rates construction worker

Self-employed construction workers can charge whatever they want. These fees are not regulated. The difference in fees is determined by the experience, quality and how much demand there is for this specific type of work. Finally, a self-employed construction worker with low overhead costs usually offers a lower tariff than a larger construction firm. Find a few examples below to give you some guidance (ex. vat):

  • Carpenter: €25-50 per hour
  • Electrician: €45-70 per hour
  • Plasterer: €25-40 per hour
  • Painter €35-50 per hour
  • Mason: €30-40 per hour
  • Roofer: €30-45 per hour

Pension in the Dutch construction industry

Employees of a Dutch construction or building firm are often required to take part in a pension fund. This also applies if you are the sole employee of your own firm. As an employers are obliged to join the industry pension fund for the Construction Industry (bpfBOUW). Employees participate in this pension scheme. The rights and obligations of employers and employees are laid down in the relevant collective labour agreement (CAO), which is referred to in the employment agreement.

Contracts for a Dutch construction company

A construction company in the Netherlands should have a number of different contracts in place to protect itself from potential legal disputes and provide clarity to its employees and customers. Some of the most important legal documents a construction company should have include: general terms and conditions, a contractor’s agreement with a customer and an employment contract for all of its employees.

  • Employment contract

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  • General terms and conditions for services

    200.00

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  • Contractor agreement

    200.00

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What are the tax implications of starting a construction company in the Netherlands?

If you are a sole proprietorship or partnership, your business income be taxed on your personal income tax. If you have little income, you will pay relatively little tax. But if your company is quite profitable, your taxes will be quite high. There are a few tax breaks for small businesses called zelfstandigenaftrek, startersaftrek and MKB-winstvrijstelling.

Personal Income Tax (IB)20222023
Bracket 137,10% up to €68.50836,93% up to €73.031
Bracket 249,50% from €68.50849,50% from €73.031

If you set up a limited liability company (BV), you will pay corporate tax on the business profits. This tax is relatively low for small and medium-sized businesses.

Profit20222023
SME tariff15% (up to €395.000)19% (up to €200.000)
Standard tariff25,8% (profits exceeding €395.000)25,8% (profits exceeding €200.000)
Innovation Box9% on profits derived from qualifying innovative activities9% on profits derived from qualifying innovative activities

Additionally, businesses must pay value added tax (VAT) on all goods and services they sell. The standard VAT rate in the Netherlands is 21%.

What are the recruitment requirements for construction workers in the Netherlands?

First of all, citizens from the EEA or Switzerland do not need a residence and work permit to work in the Netherlands. However, workers from other countries might need to apply for a residence or work permit. You can find out what kind of permits you or your employee(s) need on the website of the Dutch Immigration Services (IND)

Starting a Construction Company in the Netherlands • Legalee (5)

Where do I find construction workers in the Netherlands?

There are several options for finding construction workers in the Netherlands. One option is to recruit workers through a labor brokerage company. These companies are licensed to match employers with employees, and they can help you find workers who meet your requirements. Another option is to use a staffing agency. Staffing agencies are allowed to place construction workers in jobs throughout the Netherlands. Examples are Randstad and USG.

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Another option is to look online for workers that are looking for a job. There are several job platforms in the Netherlands where you can post a job, for example Indeed and LinkedIn.

Associations in the Dutch construction sector

There are several trade associations in the construction industry in the Netherlands. These organizations provide support and resources to their members, and they can help construction companies stay up-to-date on the latest industry trends. Some of the most popular trade associations in the construction industry include:

Insurance for construction companies

There are numerous insurance products you can take out. The most common ones for companies in the construction industry are:

  • CAR (Construction All Risk). This insurance provides coverage for material damage caused during the construction or assembly of buildings, roads, bridges and installations. For example, due to an error that causes damage to a neighboring building.
  • A business liability insurance can protect your construction company from financial damages that may occur as a result of a lawsuit. This type of insurance can help you cover the costs associated with a legal judgement, including court fees, attorney’s fees, and damages.
  • A Legal expenses insurance provides legal assistance in conflicts, for example with a customer or supplier. Such as a conflict about a contract or a product / service that you provide.

There are several types of insurance policies available, so it’s important to choose one that meets your needs. Some policies may cover damages caused by accidents, while others may cover damages caused by employees or products. It’s also important to make sure that the policy provides enough coverage to protect your company in the event of a serious lawsuit.

What does it cost to start a construction company in the Netherlands?

There are several costs that you will incur when starting a construction company in the Netherlands. These include registration fees with the Chamber of Commerce, liability insurance, and taxes. The total cost of starting a construction company in the Netherlands typically ranges from €1000 to €3000. For more information, please see our guide on starting a business in the Netherlands. Or check out our Pricing.

How long does it take to start a construction business in the Netherlands

It typically takes between two and four weeks to have your construction business in the Netherlands up and running. This process works as follows:

  • Construction company is incorporated at the notary (special lawyer in the Netherlands) takes 5-10 days
  • Registration at the chamber of commerce (KvK) takes 24 hours
  • Application for VAT number takes 5-10 days on average
  • Opening a business bank account takes 1-7 days on average
  • Optionally: take out company liability insurance and apply for any permits and licenses

We can help you to properly set up your construction company. Request a free quote below.

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Starting a Construction Company in the Netherlands • Legalee (2024)

FAQs

How to start a construction company in Netherlands? ›

On this page
  1. Check if you fulfil the conditions for staying in the Netherlands.
  2. Choose a business structure.
  3. Register with the Dutch Business Register and Dutch Tax Administration.
  4. Demonstrate you are self-employed with a model agreement.
  5. Hourly rates, construction contracts and general conditions.
  6. Tax schemes.

Can a foreigner open a company in Netherlands? ›

Can i start a business in Netherlands as a foreigner? Yes, you can start your own business in the Netherlands as a foreigner, you can also bring your business from abroad. There are certain conditions that need to be fulfilled, the primary being legal residence, and 'permission' to work in the Netherlands.

How can I work as a contractor in the Netherlands? ›

Business registration in the Netherlands

To work as an independent contractor in the Netherlands, you'll need to choose a legal structure for your business. Some of the most popular models include: Sole proprietorship (eenmanszaak): A simple structure that is ideal for independent, individual contractors.

How much money do I need to start a business in Netherlands? ›

How Much Does it Cost to Incorporate a Company in the Netherlands?
CostBV: Private Limited CompanyCV or VOF: Limited or General Partnership
One-off registration fee51.9551.95
Startup capital requirement0.01
Notary/Legal fee500-100200-400
Annual bookkeeping or accounting fee/administration cost600-1800500-1000

What is the legal form of a company in Netherlands? ›

The BV, bv or B.V., or “private limited company,” is the most well-known legal form in the Netherlands. A bv is a legal form in which the assets of the company are separated from the private assets of the owners, the so-called 'shareholders'.

How much does it cost to register a company in Netherlands? ›

How much does company registration cost in the Netherlands? The registration of a Dutch BV with 1 shareholder will start at € 1199 + VAT in notarial costs, and € 75 (2023) in Company Registry costs. That's it.

Can an American start a business in the Netherlands? ›

Almost anyone can start a business in the Netherlands, but the procedure may be slightly different depending on whether you need a visa or work permit – in other words, whether you are from the European Union or whether you are a third-country national.

Can I work remotely for a US company in the Netherlands? ›

In most cases, the client company will be based in a different country than the employee. The Employer of Record will therefore handle all employment-related matters such as payroll, contracts, and insurance. Working remotely from the Netherlands for a company based in another country is possible.

Can US citizens work in the Netherlands without a work sponsor? ›

Every non-EU citizen who wants to work in the Netherlands has to obtain a valid work permit. Either the employee or their prospective employer may request the permit, although it is usually the employer who makes the request.

Is it hard to get work permit in Netherlands? ›

Work Visa Requirements in the Netherlands

The requirements for the Netherlands work visa depend on what type of business you are involved in. You might be an intracompany transferee, a highly skilled migrant, or a European blue card holder. However, there are some general conditions you have to meet in order to apply.

What is the income tax rate for self-employed in the Netherlands? ›

Freelance income tax in the Netherlands

Profits are taxed under the Box 1 – Taxable income from employment and homeownership. In 2022, earnings up to €69,398 are taxed at 37.07%, while earnings over that limit are taxed at 49.5%. In 2023, you will pay a reduced rate of 36.93% on income up to €73,031.

Am I legally allowed to work in the Netherlands? ›

In order to work in the Netherlands, you will need both a residence permit to stay in the country as well as a separate work permit to be allowed to work. However, some applicants can apply for a Single Permit which combines both of those permits into one. This is called a GVVA and can be issued for one to three years.

What is the 30% rule in Netherlands? ›

The Netherlands has an expatriate tax concession: the 30% ruling. Eligible employees from abroad who meet the conditions and are granted the 30% ruling, may receive 30% of their gross employment income as a tax-free allowance. Consequently, the effective income tax rates are reduced with 30%.

How much money is enough in Netherlands? ›

The cost of living in the Netherlands is believed to be around 800-1000 Euros per month, including food, rent, transportation, books, and other expenses.

How long does it take to open a company in the Netherlands? ›

3-4 weeks

How much does a construction worker make in the Netherlands? ›

The average pay for a Construction Worker is €46,546 a year and €22 an hour in Netherlands. The average salary range for a Construction Worker is between €34,071 and €55,483.

Is Netherlands a good country to start a business? ›

The Netherlands has been ranked as the fourth-best country in Europe for start-ups in an annual ranking by NimbleFins, rising from 10th place the previous year. The company analysed data from the World Bank, World Economic Forum, UNESCO, OECD and tax consultancies to rank 31 countries in 4 different categories.

How do I start a private construction company? ›

How to start and successfully grow a construction business
  1. What area of construction will you focus on? ...
  2. Research your local market. ...
  3. Draft your business plan. ...
  4. Writing a construction business plan. ...
  5. Register your business. ...
  6. Get the right licenses and permits. ...
  7. Find an insurance provider. ...
  8. Find the funding you need.
Jan 28, 2022

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