DGA Salary 2026: What International Directors Need to Know

DGA stands for directeur-grootaandeelhouder — director-major shareholder. You are classified as a DGA if you:

- Hold 5% or more of the shares in a BV (directly or indirectly through a holding)

- AND work as a director (bestuurder) for the company

As a DGA, you have a dual role: you are both an employee and a shareholder. This creates specific tax obligations, particularly the requirement to pay yourself a minimum salary.

The DGA rules apply regardless of your nationality or residency status. If you are a non-resident DGA of a Dutch BV, you may still need to file a Dutch income tax return for your DGA salary.

The minimum DGA salary for 2026 is **€56,000** per year (gross). This amount is indexed annually and has increased from €51,000 in 2023.

How it is determined

The Tax Authority (Belastingdienst) uses the highest of three benchmarks:

- 75% of the salary for a comparable position in the market

- The highest salary paid to other employees of the BV

- €56,000 (the statutory minimum for 2026)

You must pay yourself at least the highest of these three amounts.

What it means in practice

On a €56,000 gross salary, you will pay approximately €15,000–18,000 in income tax and social contributions (depending on deductions). Your net take-home will be around €38,000–41,000.

The BV also pays employer contributions (approximately 5–8% of gross salary).

The 30% ruling (30%-regeling) is a Dutch tax benefit for expatriate employees, and it can also apply to DGA directors.

How it works

30% of your gross salary is treated as a tax-free allowance for extraterritorial costs. This means you only pay income tax on 70% of your salary.

Impact on DGA salary

With the 30% ruling, your €56,000 gross DGA salary is effectively split:

- €39,200 — taxable salary

- €16,800 — tax-free allowance

This reduces your effective income tax rate significantly.

Eligibility

To qualify, you must:

- Be recruited from abroad (or lived more than 150 km from the Dutch border for 16 of the 24 months before starting)

- Have specific expertise not readily available in the Netherlands

- Earn at least the minimum salary threshold (€46,107 in 2026, or €35,048 for holders of a Dutch master's degree under 30)

**Duration:** maximum 5 years (reduced from the original 8 years).

**Important:** the 30% ruling applies to the taxable portion of your salary. The minimum DGA salary of €56,000 still applies before the 30% ruling calculation.

There are situations where the Tax Authority accepts a lower DGA salary:

How to request an exception

You can apply to the Belastingdienst for a ruling on a lower DGA salary. Alternatively, you can set a lower salary and provide justification if audited. In either case, keep thorough documentation.

**Warning:** setting your salary too low without proper justification can result in the Tax Authority adjusting your salary upwards and imposing penalties. When in doubt, consult a tax adviser.

As a DGA, you have flexibility in structuring your total compensation:

Salary vs dividends

Beyond the minimum salary, you can choose to take additional compensation as salary or dividends. Dividends are taxed at approximately 26.9% (box 2), while salary above €75,518 is taxed at 49.50% (box 1). For amounts above the minimum salary, dividends are usually more tax-efficient.

Optimal strategy for 2026

1. Pay yourself the minimum DGA salary (€56,000)

2. Apply the 30% ruling if eligible

3. Take additional profits as dividends through your holding BV

4. Keep reserves in the holding for reinvestment

Management fee

If you have a holding structure, your holding BV can charge a management fee to the operating BV. This is a common way to move money from the operating BV to the holding. The management fee is subject to VAT (21%) and must be at arm's length.

Pension accrual

You can build pension reserves in your holding BV, providing tax-deferred retirement savings. Consult a pension adviser for the specifics.