When does a holding company make sense?
Short answer
A holding company makes sense mainly if you want to build up profit without risk in your operating company, if you may want to sell your business one day, or if you run a business with partners. Dividend from the operating company to the holding is tax-free, and so is the gain when the operating company is sold.
Updated on · Reviewed by the tax advisers at Boekhoudvriend
A holding company is a BV that holds the shares of another BV, the operating company. You own the holding, and the holding owns the operating company. This creates a buffer between your business risk and your assets.
The benefits
- Spreading risk: you move profit from the operating company safely into the holding
- Participation exemption: dividend and sale gains from the operating company are tax-free in the holding
- Flexibility: you choose when to pay dividend out to yourself privately
- Working together: each partner has their own holding and makes their own choices
The costs
A holding means an extra BV with its own annual accounts and tax return. With us, a holding with an operating company on Full service costs € 350 a month in total. We work out with you in advance whether that outweighs the benefit.
Sources
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.