Tax Avoidance and Estate Planning

Large companies have known various fiscal routes for years and built complex international structures on them. Frequently, they can even count on a written consent of their tax inspector. This ruling-policy has turned the Netherlands and other countries into a virtual tax haven for multinational companies. In a simplified form, we bring these privileges within reach of small and medium-sized companies as well, which on their own lack the necessary negotiating clout with the tax inspector.

A holding structure may be appropriate, therefore, for anyone who cannot move his firm or his family abroad, but does want to profit from foreign tax rates. A simple, well-planned combination of an operating company, holding company, and Trust can effectively cut your tax burden in half. This holds true for almost any company making profits in Europe. In some cases for companies involved in international trade or in holding intellectual property rights we can help avoid almost all taxation.

Example:
Since the Dutch corporation tax rate (20% and 25%) is generally lower than the income tax rate for sole-proprietors and general partnerships (marginally 52% in box 1 of the personal tax return), a BV or Limited provides an annual 20% cash flow advantage. When ending a BV or Limited and liquidating its assets, moreover, you would face a 25% tax, as against 52% as sole-proprietor or general partner. This is of course a future (and therefore often neglected) advantage. This 25% tax (box 2 of the personal tax return) can be avoided altogether using an English holding company held in turn by a holding company in a zero-tax jurisdiction. For anyone who has faithfully reinvested the profits of many years, such a structure would not just save him money, but in effect save his lifework.

Your investment in our most popular structure, the Dividend Structure, would break even at an annual pre-tax profit of EUR 30.000. At EUR 100.000 (pre-tax), you stand to return 3 or 4 times the costs in tax savings.

Home