When do you graduate from an EOR to your own Netherlands entity?

The calculation below uses EUR 550 as the illustrative EUR equivalent of the Teamed fee. This is illustrative, not a fixed EUR price. The actual EUR amount depends on the exchange rate at the time of invoice. Teamed charges from $599 USD with zero FX mark-up.

All entity cost figures in this table are typical ranges based on outsourced payroll, bookkeeping, statutory filings, and HR admin for a small Netherlands BV. They are illustrative, not statutory numbers. Actual costs vary with the complexity of your setup, whether you outsource or hire in-house, and the benefits programme you run.

Employer social contributions at approximately 18.87% (estimated; components vary by sector and risk classification) apply to all employees. This cost sits on both sides of the comparison. It does not change the crossover point.

Netherlands sector-specific collective labour agreements (CAO) may impose occupational pension contributions on top. There is no single statutory employer pension rate in the Netherlands. If a CAO applies to your sector, the pension line adds to the entity-side overhead on both routes. Run the Crossover Calculator with your own headcount and salary band.

1. Calculate the EOR cost

   Multiply the Teamed fee (from $599 USD) by your planned Netherlands headcount. This is the fixed variable cost. It grows linearly as you hire.

2. Estimate the entity fixed overhead

   Typically EUR 3,500 to 5,000 per month for a small Netherlands BV. This covers payroll bureau, bookkeeping, statutory filings, and first-point HR. This cost does not grow much until headcount exceeds 15.

3. Find the crossover headcount

   The crossover is where EOR monthly cost equals entity monthly overhead. For most Netherlands tech salary bands, this is around 6 to 10 employees. Use the Crossover Calculator for your own numbers.

4. Factor in non-financial triggers

   The maths gives you a headcount threshold. Tax-treaty substance, the two-year sick pay liability, CAO applicability, and works council planning are separate questions that may override the cost crossover in either direction.

5. Plan the graduation date

   Allow 6 to 8 weeks for BV formation before the first payroll on your own entity. Factor in 2 to 6 weeks extra for bank account opening. Start the GEMO process while EOR continues running.

These are typical ranges. They are not statutory figures. There is no law that sets what a Netherlands BV costs to form. The range reflects real market rates for professional services, and it varies with how much substance and complexity your structure needs.

Why the bank account and CAO review add time

Netherlands banks apply enhanced due diligence to foreign-parented BVs. Expect 2 to 6 weeks from application to an opened account. If your sector falls under a CAO (collective labour agreement), a compliance review is needed before you can set employment terms. Skipping this check creates employment law exposure from the first hire. Allow 6 to 8 weeks total before the first payroll run.

These figures are typical market ranges for a small Netherlands BV with 1 to 15 employees. They are illustrative. They are not statutory costs. Actual costs depend on whether you outsource or hire in-house, the quality of service you choose, and the complexity of your payroll and benefits programme.

Above 15 employees, dedicated Netherlands HR capacity and an in-house finance function typically become necessary. The cost band widens at that point. CAO pension obligations, if your sector has them, sit on top of these figures on both the EOR and entity routes.

Most cost comparisons skip the director-liability dimension because it is hard to put a number on. It is worth naming explicitly before you decide.

Personal director duties under Dutch law

Under the Dutch Civil Code (Burgerlijk Wetboek), a BV director must act in the interests of the company and its stakeholders, maintain accurate accounts, and file statutory returns on time. A director who fails to file on time loses the right to challenge a tax assessment in most cases. These are personal duties. They cannot be delegated to a payroll bureau or an accountant.

The two-year sick pay obligation

This is the most frequently underestimated liability in the Netherlands. If you employ via your own BV, you must pay at least 70% of salary during the first year of illness and 70% during the second year, for up to 24 months. The total potential exposure per employee is roughly two years of salary at 70%. An EOR carries this obligation on its own entity and reflects it in the transparent fee structure.

The compliance treadmill

• Annual accounts: filed with KVK within 8 days of adoption (typically within 12 months of year-end). Late filing creates a presumption of mismanagement in insolvency proceedings.
• Corporate tax return (Vennootschapsbelasting): due 5 months after year-end (extendable). Late penalties apply.
• Loonheffing (payroll tax) submissions: monthly, filed with Belastingdienst on or before payday.
• UWV sick-pay and leave notifications: strict timelines. Late notification can forfeit your right to UWV reimbursement in the second year of illness.
• Works council (ondernemingsraad): required from 50 employees. At that threshold, certain decisions require consultation or co-determination rights. This is a structural governance cost that does not appear in the monthly overhead range above.

Each filing is individually manageable. Stacked across a year, they consume real director attention. An EOR carries all of these on its own entity.

• Under 6 Netherlands employees at average salaries: EOR is cheaper and faster every month. The entity overhead has nothing to amortise against.
• Market validation phase: you are hiring 1 or 2 people to test commercial fit, with an option to scale back. BV setup commits capital and management attention before you know whether the Netherlands market will deliver.
• Short-duration hires: 6 to 12 month engagements where the formation cost will not amortise before the project ends.
• Sick-pay risk is unquantified: you have not yet modelled what a two-year sick-pay obligation looks like across your planned headcount. One long-term illness event on your own BV costs roughly two years of that employee's salary at 70%. On EOR, Teamed holds this risk.
• CAO uncertainty: you have not yet confirmed whether a sector CAO applies to your hires. Running a BV under the wrong CAO assumption creates retroactive exposure. EOR provides cover while you get legal clarity.
• Acquired team you may divest: post-acquisition holding patterns where adding a BV creates wind-up complexity later.

• Sustained headcount above 8 to 10 Netherlands employees at average salaries: the BV overhead amortises across enough people that per-head cost falls below the EOR fee.
• Tax-treaty substance and permanent establishment control: some cross-border structures require actual Netherlands substance (employees, address, banking, board decisions) in your own entity. EOR employment does not count as your substance for these purposes. This is often the first structural reason to incorporate.
• Innovation box (Innovatiebox) and R&D incentives: the Netherlands 9% innovation box rate and WBSO R&D credits require qualifying activities conducted by your own entity. An EOR structure cannot access these tax regimes on your behalf.
• Works council preparation: planning past 50 employees in the Netherlands means planning for a works council. That governance structure is simpler to build in your own BV from the start than to retrofit through an EOR transition.
• Enterprise customer or investor expectation: Netherlands enterprise customers and institutional investors often prefer a local BV counterparty. Worth flagging early if relevant to your sales or fundraising motion.

The technical mechanic is contract novation: the employment contract transfers from Teamed B.V. to your new BV on a specified date. All terms carry across. Salary, pension (if applicable under a CAO), holiday entitlement (20 days statutory days plus any contractual excess), and continuous service date all remain unchanged. The employee sees a different employer name on their payslip. Nothing else changes.

What we do operationally:

• Stand up your Netherlands BV through GEMO, typically around 6 to 8 weeks, while EOR continues running in parallel.
• Handle KVK registration, notary deed, and Belastingdienst loonheffing registration.
• Confirm CAO applicability for your sector before the first payroll runs on the new entity.
• Novate every active employment contract on a single effective date.
• Migrate ongoing benefits without any lapse.
• File final EOR-period loonheffing submissions and open new payroll on the BV from the novation date.
• Provide the same People Ops specialist as the post-graduation primary contact.

The Graduation Model exists because the Netherlands BV transition has more moving parts than most countries. Sick-pay obligations, CAO confirmation, and works council planning all need to be sequenced correctly. We build that plan from the day you hire your first employee through us.

Real HR and legal experts handle your Netherlands hires from the first offer letter through every loonheffing submission and annual P60 equivalent. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on every invoice. You see the employer social contributions line at approximately 18.87% (estimated; exact rate varies by sector and Whk classification), the statutory 20 days annual leave accrual, and the two-year sick pay obligation at 70%. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on one platform. The service works until it isn't the right answer any more, and then we help you graduate. Run the Crossover Calculator to see the month the model flips. Start from the Netherlands hiring overview. Key sources: Business.gov.nl and Belastingdienst (Dutch Tax Authority).