Stichting (Foundation) in the Netherlands

Key Takeaways

A stichting (foundation) is a separate legal entity with no shareholders and no members.
It cannot distribute profits to its founders or board members.
A stichting can run commercial activities — profits must serve the foundation's stated purpose.
Stichtingen with ANBI status are exempt from most taxes and can receive tax-deductible donations.
Stichtingen are also used as holding structures (STAK) and for asset protection — not only for charities.

What Is a Stichting?

stichting

The stichting is one of the most versatile legal forms in the Netherlands. While commonly associated with charities and non-profits, stichtingen are used across a wide range of purposes: social enterprises, cultural organizations, sports clubs, pension funds, and sophisticated corporate structures.

Setting Up a Stichting

Incorporation

A stichting must be incorporated through a notary. The notary drafts the statuten (articles of association) and files the deed of incorporation.

Costs: €500–€1,500 for the notary, plus €75 for KVK registration.

Articles of Association (Statuten)

The statuten must include:

Name — must include the word "stichting"
Purpose (doel) — clearly defined, may be broad or narrow
Board composition — how board members are appointed and dismissed
What happens to remaining assets upon dissolution — must go to a purpose similar to the stichting's own purpose

Governance

A stichting is governed by its board (bestuur). There are no shareholders to report to. The board makes all decisions.

Key governance rules:

No individual board member should have decisive control — the statuten should prevent this
Board members may receive reasonable compensation for their work, but not profit distributions
A supervisory board (raad van toezicht) is optional but recommended for larger stichtingen

Tax Treatment

Corporate Income Tax

A stichting is subject to corporate income tax (vennootschapsbelasting) if it conducts commercial activities — activities that compete with taxable businesses.

If the stichting's commercial profits stay below €15,000 per year (or below €75,000 over a rolling 5-year period), it is exempt from corporate tax.

If taxable, the same rates apply as for BVs: 19% on the first €200,000, 25.8% above.

VAT

If the stichting provides goods or services for consideration, it must register for and charge VAT (BTW). Some activities of stichtingen qualify for VAT exemptions (education, healthcare, cultural activities).

ANBI Status

ANBI

Benefits of ANBI status:

No gift tax or inheritance tax on donations and bequests received
Donors can deduct donations from their income tax (Box 1)
No corporate tax on commercial activities if profits serve the ANBI purpose
Reduced or zero VAT on certain activities
Enhanced credibility with donors, grants, and government contracts

Requirements for ANBI status:

At least 90% of the stichting's activities must serve the public interest
Board members may not receive more than reasonable compensation (no profit-based bonuses)
The stichting must publish certain information on its website (mission, board composition, annual report, financials)
Strict administration and transparency requirements

STAK — Stichting Administratiekantoor

A specialized use of the stichting form is the STAK (Stichting Administratiekantoor). This is a foundation that holds shares in a BV and issues certificates (certificaten) to the economic beneficiaries.

The STAK separates voting rights (which stay with the STAK board) from economic rights (which go to the certificate holders). This structure is commonly used for:

Employee participation — give employees economic interest without voting power
Succession planning — transfer wealth while retaining control
Asset protection — keep shares under controlled governance

Good to know

The STAK is a legitimate and widely used corporate structure, not a tax avoidance scheme. It is standard practice for family businesses, startups with employee stock plans, and multi-generational companies.

When Does a Stichting Make Sense?

Scenario	Stichting Appropriate?
Charity or non-profit organization	Yes — apply for ANBI status
Social enterprise reinvesting all profits	Yes
Holding shares in a BV (STAK structure)	Yes
Regular commercial business	No — use BV or eenmanszaak
Getting profits out to founders	No — stichtingen cannot distribute profits

Common Mistakes

Using a stichting to avoid taxes — A stichting that conducts commercial activities still pays corporate tax. The tax benefits primarily apply to genuine ANBI organizations.
Expecting to receive profit distributions — By law, a stichting cannot distribute profits to founders or board members. If you want to extract profits, a BV is the right structure.
Poor governance — A stichting with one all-powerful board member invites problems. Implement proper checks and balances.
Not applying for ANBI status when eligible — If your stichting qualifies, ANBI status provides significant tax benefits for both the organization and its donors.