Term · BV & DGA
Holding company
A BV that holds shares in another BV, the operating company. A holding company is often used to separate risks and to arrange profit or assets flexibly.
Dividends from the operating company to the holding company are tax-free thanks to the participation exemption. This lets you protect profit from business risk.
A holding company does mean extra bookkeeping, annual accounts and tax returns. Whether it pays off depends on your profit and plans.