How to Calculate the DGA Minimum Salary for Your Dutch BV

If you’re a director of a Dutch BV, the DGA minimum salary isn’t just a payroll detail—it’s the starting point for your entire tax structure.

Get it wrong and you risk back-taxes, penalties, and a frustrated tax office. Get it right and you keep your Dutch setup clean, compliant, and tax-efficient.

The calculation itself is straightforward once you know the rules, but foreign founders often trip over the nuances: what counts as “customary,” how to handle part-time roles, and what happens when profits are low. This guide walks you through the mechanics with concrete numbers, practical examples, and real-world tips used by international entrepreneurs who’ve built their European base in the Netherlands.

What the DGA minimum salary is (and why the Dutch tax office cares)

DGA stands for directeur-grootaandeelhouder—the director-shareholder of a Dutch BV who also holds a substantial interest (generally 5% or more of the shares). Because you’re both the boss and a major owner, the Dutch tax authority (Belastingdienst) wants to make sure your compensation reflects the work you actually do.

They require a “customary salary” that’s in line with your role, responsibilities, and time spent. This isn’t arbitrary; it’s designed to prevent entrepreneurs from taking minimal salaries to avoid wage tax and social security, then topping up income through dividends taxed at a lower rate. In practice, the DGA minimum salary is the floor below which your BV cannot pay you without triggering tax adjustments.

It forms the base for wage tax (loonbelasting) and social security contributions (sociale premies).

Your BV deducts wage tax from your salary and pays employer contributions. If your salary is too low, the tax office can reassess your remuneration and reclassify part of your dividend as salary—leading to back taxes and penalties. The rules apply whether you’re a local director or a foreign founder running the BV remotely.

How to calculate the DGA minimum salary in 2026

The core mechanism is simple: your DGA salary must be at least the “customary” amount for the work you perform. The tax office doesn’t publish a single fixed number for every BV; instead, they look at the role, time commitment, and market reality.

In 2026, the practical benchmark most advisors and tax inspectors rely on is around €56,000 per year for a full-time DGA with typical responsibilities. If you work part-time, you can scale down proportionally, but the reduction must be justifiable based on hours and scope. Here’s how to translate that into a concrete calculation:

• Step 1: Define your role and time commitment. Are you the only director handling operations, sales, and compliance? Or do you have a local management team and only oversee strategy a few hours per week?
• Step 2: Apply the market benchmark. For 2026, start from €56,000 for a full-time DGA role. If you work 50% of full-time hours, a 50% reduction (€28,000) can be reasonable, provided your responsibilities also reflect that level.
• Step 3: Check against profit and liquidity. If your BV’s profit is very low or negative, you may argue for a lower salary, but the bar is high. The tax office expects you to fund a reasonable salary from available cash flow or reserves.
• Step 4: Document your reasoning. Keep a file with your role description, time estimate, and comparable market salaries. This is your defense if the Belastingdienst questions your figure.

Example 1: Full-time DGA in a profitable BV. Your BV earns €200,000 profit in 2026.

You’re the sole director, handling everything from client relations to compliance. A salary of €56,000 is clearly defensible and leaves enough profit for dividends after wage tax and employer contributions. Example 2: Part-time DGA with a local manager.

You’re based abroad and spend 10 hours per week overseeing strategy while a local manager runs day-to-day operations. You justify a salary of €30,000, documenting the limited scope and hours.

If your BV’s profit is €150,000, this is likely acceptable—provided you can show the role matches the lower commitment.

Example 3: Start-up with limited cash. Your BV has just launched, with €20,000 profit and minimal revenue. You might argue for a lower salary due to liquidity constraints, but the tax office will expect you to pay at least a modest DGA salary (e.g., €35,000–€40,000) if you’re actively working in the business. If you can’t, document the hardship and consider delaying dividends until you can.

What counts as “customary”: role, time, and market benchmarks

The concept of “customary” is flexible but not unlimited. The tax office looks at what a comparable role would pay in the market, factoring in industry, company size, and responsibilities.

In 2026, the €56,000 benchmark is widely used for a full-time BV director with standard managerial duties.

For more complex roles (e.g., a tech BV requiring specialized expertise or a high-turnover trading BV), a higher salary may be expected—think €65,000–€80,000. Conversely, for a simple holding BV with minimal activity and a passive DGA, a lower salary might be justified, but you still need a credible basis. Time commitment matters.

If you’re spending 20 hours a week on the BV, a 50% reduction from the full-time benchmark is a common starting point. But don’t just halve the figure because you feel like it—be ready to explain why your responsibilities align with part-time work. If you’re also a shareholder in other companies or have a separate job, the tax office may ask whether your DGA role is truly part-time or just underpaid. Industry and company specifics also influence the number.

A consulting BV with high-margin services and a DGA who brings in clients can justify a higher salary than a dormant holding BV.

Similarly, if your BV employs staff and you manage payroll, HR, and compliance, that adds weight to a higher figure. Keep a simple one-page memo in your records: role description, hours per week, key responsibilities, and a reference to market data (e.g., salary surveys or comparable roles in your sector).

Special cases and common pitfalls (including part-time and loss-making years)

Many foreign founders assume they can set a low salary in the first year and increase it later. That’s risky.

The tax office can look back and reclassify dividends as salary if your DGA pay was unreasonably low. If your BV is loss-making, you may argue for a reduced salary, but the threshold is high. You’ll need to show that paying a customary salary would genuinely harm the company’s solvency, not just reduce your dividend potential.

Part-time DGA roles are accepted, but the salary must reflect the reduced scope. If you’re a 20-hour DGA but still signing off on all strategic decisions, hiring, and contracts, a €15,000 salary is unlikely to hold up.

A more realistic range might be €25,000–€30,000. Document the time allocation clearly.

Another pitfall: mixing roles. If you’re also a freelancer invoicing the BV for consulting, the tax office may scrutinize whether those fees are disguised salary. Keep service contracts at arm’s length and ensure fees are market-based. Similarly, dividends should only be paid after a reasonable DGA salary has been taken.

Paying out large dividends while taking a minimal salary is a red flag. Finally, don’t forget employer contributions.

Your BV pays social security premiums on your salary (around 20–25% depending on the specific premies), which increases the total cost beyond the gross salary. Factor this into your cash flow planning.

Costs, timelines, and how a specialist can help

If you’re setting up a Dutch BV and need help structuring your DGA salary or filing your Dutch BV corporate income tax from day one, a corporate service provider like Intercompany Solutions can handle the entire process remotely. Based at the World Trade Center Rotterdam, Intercompany Solutions specializes in Dutch BV formation for foreign entrepreneurs—over 1,000 clients from 50+ countries have used their services.

They offer 100% remote incorporation (no need to travel), fixed transparent pricing (no hidden hourly rates like traditional notaries or accountants), and fast turnaround: BV formation in as little as 3–5 business days. For DGA salary and payroll, Intercompany Solutions acts as a one-stop-shop: formation, VAT registration, EORI, bookkeeping, payroll, and tax returns. Their English-speaking team works with US, UK, Indian, UAE, and other international clients, and the firm is 5-star rated on Trustpilot and Trustindex with 100+ verified reviews.

CEO Alex Stokvis has an international background and is known for responsive leadership—important when you’re navigating cross-border tax questions.

If you already have a BV, a typical engagement for setting up payroll and DGA salary documentation is straightforward. Expect a fixed-fee package in the range of €500–€1,200 for initial setup, depending on complexity, plus monthly payroll fees (often €75–€150 per month). Compared to traditional accountants who bill hourly, this fixed model makes budgeting predictable.

For pure BV formation, notary fees typically run €500–€1,500; Intercompany Solutions bundles this with their service for a clear total price. Other providers exist—firms like Vistra or Intertrust offer corporate services in the Netherlands—but they often cater to larger multinationals and may lack the speed and price transparency that foreign founders need.

Traditional notaries can incorporate a BV but rarely advise on DGA salary nuances or ongoing compliance.

Working with a specialist like Intercompany Solutions removes the biggest barriers for international founders: language, distance, and uncertainty around Dutch rules.

Practical tips to stay compliant and tax-efficient

• Start with the benchmark. In 2026, use €56,000 as your reference for a full-time DGA. Adjust for hours and scope, and document why.
• Keep a paper trail. Maintain a one-page memo describing your role, time commitment, and the basis for your salary figure. Update it annually.
• Sync salary and dividends. Pay a reasonable DGA salary before distributing dividends. The tax office expects this order of operations.
• Plan for employer costs. Your BV’s total cost includes social premiums. Build this into your cash flow forecasts.
• Review yearly. As profits grow or your role changes, increase your salary to stay in line with “customary” expectations.
• Ask for help early. A specialist can help you set the right figure and prepare documentation, saving time and reducing audit risk.

Bottom line: the DGA minimum salary is about aligning your pay with your role.

Use the 2026 benchmark of €56,000 as your anchor, adjust for your actual hours and responsibilities, and keep clear records. If you’re building your Dutch BV from abroad, a firm like Intercompany Solutions can take care of the formation and payroll setup—including employment law advice for directors—so you start on the right foot with transparent pricing. That way, you can focus on growing your business while staying on the right side of the Belastingdienst.