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/ 01DECISION MAP™AVAILABLE · REVIEWED 12 NOV 2026

Establishing a European operating base: Germany, the Netherlands or France

Where should a non-EU company place its first EU operating company? Compare three common locations for a first EU subsidiary on the questions that usually decide the choice: formation, profit taxes, incentives, VAT, people and the practical sequence.

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Written for: Leadership, finance and legal teams of companies from outside the EU planning a first EU entity. A Decision Map is a structured comparison, not a professional opinion: each point shows its source and the date it was checked.

/ 02COMPARE
ROUTES CATEGORIES
Category Germany
GmbH		 Netherlands
BV		 France
SAS
Company formation
Which entity is usual and what capital does it need?		 GmbH is the usual form. Minimum share capital EUR 25,000, of which at least half must be paid in before registration. Formation is notarised and registered in the commercial register. [3] BV is the usual form. No meaningful minimum capital since the 2012 flex-BV reform (one share of EUR 0.01 is enough). Deed executed before a Dutch civil-law notary, then registration with the Chamber of Commerce (KVK). [5] SAS is the usual form for foreign-owned subsidiaries. Capital is freely set by the shareholders (a symbolic amount is possible) and the articles are highly flexible. General information
Corporate income tax
What headline rate applies to profits?		 Corporate income tax 15% plus 5.5% solidarity surcharge (15.825%), plus municipal trade tax that varies by location. Combined burden typically around 30%. The 15% rate is legislated to fall by one point a year from 2028 to 10% in 2032. [1] [2] 19% on the first EUR 200,000 of taxable profit and 25.8% above it, unchanged for 2026 and proposed unchanged for 2027. [4] [5] Standard rate 25%. Eligible SMEs (turnover below EUR 10 million, conditions on ownership) pay 15% on the first EUR 42,500 of profit. [6] [7]
Innovation incentives
What helps a company that develops technology?		 Research allowance (Forschungszulage): a cash-refundable allowance on qualifying R&D costs. Check current rates and caps before modelling. [2] Innovation box: qualifying profits from self-developed intangibles can be taxed at an effective 9% instead of 25.8%. [5] Research tax credit (crédit d’impôt recherche) on qualifying R&D spending; the reduced SME rate applies separately. Check current rates before modelling. General information
VAT standard rate
What VAT rate applies to most sales?		 19% standard rate (7% reduced). [2] 21% standard rate (9% reduced). [5] 20% standard rate (reduced rates of 10%, 5.5% and 2.1%). General information
Employment
What should be expected when hiring?		 Strong employee protection once headcount and service thresholds are met; works councils can be formed in establishments with five or more employees. Employer social contributions are substantial. General information Dismissal requires a reasonable ground and usually UWV approval or a court ruling. A 30% ruling may reduce taxable salary for qualifying incoming employees. General information Employment governed by the Labour Code and sector collective agreements; employer social charges are among the highest in the EU. General information
Practical sequence
What usually comes first?		 Notarial deed → capital deposit → commercial register entry → tax registration → trade registration with the municipality. [3] Notarial deed → KVK registration (tax numbers issued automatically) → bank account → payroll registration if hiring. [5] Articles and capital deposit → single online formality (guichet unique) → Kbis extract → tax and social registrations. General information
UNCERTAINTIES

What the evidence cannot settle

  • German municipal trade tax depends on the city chosen; the combined rate must be modelled for the actual address.
  • Incentive rates and caps change frequently and depend on the project; verify before relying on them.
  • EU and OECD minimum tax rules (Pillar Two) may apply to groups with consolidated revenue of EUR 750 million or more.
FOR YOUR ADVISERS

Questions needing qualified advice

  • Which entity form and capital fit the planned activity and investors?
  • Will the parent need transfer pricing documentation for services to the new entity?
  • Does any activity need a licence (financial services, healthcare, telecoms)?
  • How will founders and secondees be employed and taxed?
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Take it further

/ 03SOURCES7 SOURCES · CHECKED 12 NOV 2026
  1. Germany: Taxes on corporate income · PwC Worldwide Tax Summaries · 2026-06-30 · checked 12 Nov 2026
  2. Germany Highlights 2026 · Deloitte · 2026 · checked 12 Nov 2026
  3. Limited Liability Companies Act (GmbHG), section 5 · Federal Ministry of Justice · checked 12 Nov 2026
  4. Corporation tax · Government of the Netherlands · 2026 · checked 12 Nov 2026
  5. Taxes and Incentives 2026 · Invest in Holland (NFIA) · 2026-01 · checked 12 Nov 2026
  6. L’impôt sur les sociétés · Ministère de l’Économie · 2026-04-22 · checked 12 Nov 2026
  7. Impôt sur les sociétés : taux, déclaration, paiement · Entreprendre Service Public · 2026-02-17 · checked 12 Nov 2026

Prepared by Intelligence desk · AI-assisted research, sources checked 12 Nov 2026. Points marked "General information" are widely published practice and should be confirmed with qualified advisers. Not legal, tax, investment or financial advice. How research is reviewed · Report a correction