Netherlands-US Tax Treaty: 0% Dividends Explained

The Netherlands-US tax treaty is among the most generous globally. Dutch residents running US LLCs typically have zero US federal income tax on operating revenue, and treaty rates on US-source FDAP can drop to 0% in qualifying cases. Here is the detailed breakdown.

Answer

The Netherlands-US treaty: dividends drop to 0% in qualifying parent-subsidiary cases, or 5%/15% otherwise (with W-8BEN-E filed). Royalties drop to 0% under the treaty. Article 7 protects business profits from US tax. Belastingdienst generally recognizes US LLCs as transparent (pass-through), so the LLC flows through to your Dutch tax return cleanly. Among the cleanest cross-border setups globally for non-resident founders.

By Zawwad, Founder & CEO, WyomingLLC by Topslice LLC.

Last updated May 20, 2026

Treaty rates breakdown

Dividends: 0% qualifying parent-subsidiary (10%+ ownership). 5% for 10%+ ownership otherwise. 15% standard.
Royalties: 0% under the treaty (one of the most generous globally)
Interest: 0% on most types
Business profits (Article 7): protected from US tax without US permanent establishment

How Belastingdienst treats US LLCs

Generally treats US LLCs as transparent for Dutch tax. Pass-through income flows to your Aangifte IB (annual income tax return). Reported via Anlage AUS (foreign income) or relevant sections. Consult a Dutch belastingadviseur for specific filing setup.

Common Dutch founder structures

BV + Wyoming LLC: Dutch BV for local operations, Wyoming LLC for US-facing
ZZP + Wyoming LLC: independent contractor (ZZP) for local + Wyoming LLC for US clients
Holding BV owns Wyoming LLC: tax-efficient cross-border

Box 3 and Wyoming LLC

LLC ownership and any retained earnings may fall under Dutch Box 3 wealth tax depending on Belastingdienst categorization. Most Wyoming LLC owners with operating businesses (low retained capital) face minimal Box 3 impact. Consult a Dutch tax advisor for specific calculation.

Dutch ATAD CFC rules

Yes (Art. 13a Wet VPB). Most operating businesses with substantive activity escape CFC treatment. Passive holding or investment structures may trigger. Consult a belastingadviseur for specific risk assessment.

Frequently asked questions

Will I owe any US federal tax?

Generally no for operating business profits. Form 5472 + pro forma 1120 filing mandatory annually but typically $0 tax due.

How is GST/VAT on US sales to Dutch customers?

Dutch VAT may apply to digital services to Dutch consumers. Consult a Dutch VAT specialist if you have significant Netherlands-consumer revenue.

Can I run BV and Wyoming LLC together?

Yes. Common pattern. BV for Dutch ops, Wyoming LLC for US-facing.

Does Belastingdienst always recognize LLC pass-through?

Usually yes. Some edge cases trigger opaque treatment. Standard structures are transparent. Consult a Dutch belastingadviseur for confirmation.