CUSTOMARY SALARY FOR A DIRECTOR AND MAJOR SHAREHOLDER

Introduction and General Requirements

If you work for your own private limited company (bv), Dutch law requires that you receive a salary from this company. There are specific rules governing the amount of your salary, which must be a 'customary salary'.

Who Must Receive a Customary Salary?

The customary salary regulation applies to anyone who holds a substantial interest in a company, and also performs activities for that company. An individual has a substantial interest if they own at least 5% of the shares, have the right to acquire at least 5% of the shares, or hold profit participation rights covering at least 5% of the annual profit.

Do you have a substantial interest in a private limited company (bv)? If your partner works for your bv, they must also receive a customary salary, even if they do not personally own shares.

Determining the Salary Amount

Your salary for 2026 must be set at the highest amount among the following: the salary from the most comparable employment position, the salary of the highest-earning employee within your company or affiliated companies, or €58,000. The amount of €58,000 for 2026 represents an increase of €2,000 compared to 2025 (€56,000).

A company is considered an affiliated company if your bv holds at least a one-third interest in another bv, if another bv holds at least a one-third interest in your bv, or if a third party holds at least a one-third interest in both your bv and another bv.

Salary in Special Cases

Does your bv have multiple directors and major shareholders, and does a fellow director within the bv have a higher salary than you? Your fellow director’s salary becomes the salary of the highest-earning employee.

Can you convincingly demonstrate that the calculated customary salary is higher than the salary from the most comparable employment position? If so, you may set your customary salary to match that lower salary.

In certain situations, you may apply a lower salary, for example, start-up businesses can apply a lower salary for a maximum of three years if the bv cannot afford the customary salary due to initial start-up costs.

Part-time Work

If you work part-time, you may proportionately calculate the salary from the most comparable employment position or the highest-earning employee based on your part-time percentage. You cannot proportionally adjust the standard amount of €58,000.

Components Counting Towards Customary Salary

Once you have determined your customary salary, it is sometimes possible to set your regular salary at a lower amount because, in addition to your regular cash salary, other salary components are also taken into account, including the taxable benefit of your company car and reimbursements under the work-related expenses scheme.

Administrative Exemptions

If your customary salary is no more than €5,000, you do not need to comply with customary salary rules, and you may choose not to pay yourself a salary. However, if you do pay a salary, you must maintain payroll records and deduct payroll tax—even if the salary is below €5,000.
 

More information

For more information about this subject, you can read the advisory handbook.

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