When using NL companies take note of the following matters regarding equity and debt financing:

• The public limited company (“NV”) and the limited liability company (“BV”) have a minimum share capital of EUR 18,000.
• Capital contributions are not subject to a tax in The Netherlands.
• It is possible to make capital contributions without issuing new shares.
• Capital contributions may be in cash or in kind.
• Under certain circumstances, equity contributions in kind may avoid a valuation by a charted accountant.
• Debt financing may be beneficial due to the absence of tax on payments of interest (“interest withholding tax”).
• Netherlands tax law does include limited thin capitalization rules.
• Netherlands companies are used in so-called “back-to-back financing” structures. The spread to be reported should be at arm’s length.