EOR vs entity cost comparison
Compare the cost of Employer of Record against setting up your own legal entity. Side-by-side monthly costs, timelines, and break-even analysis.
About this tool
Compare the monthly and three-year costs of using an Employer of Record versus establishing your own Dutch BV. The calculator factors in entity setup, legal and notary fees, ongoing administration, and the EOR fee structure.
For whom
Companies hiring their first few employees in the Netherlands who are deciding between EOR and entity setup.
Inputs
Headcount, average salary, and expected timeline in the Netherlands.
Output
Side-by-side monthly cost comparison and break-even analysis.
EOR vs own entity cost calculator
Compare the total cost of using an Employer of Record against establishing your own legal entity in the Netherlands. Adjust the parameters below to see a personalised breakdown.
EOR model
- Setup time
- 2-4 weeks
- Monthly cost
- € 33.976
- Total cost (36 months)
- € 1.223.138
- Setup cost
- € 0
Own entity
- Setup time
- 8-16 weeks
- Monthly cost
- € 35.351
- Total cost (36 months)
- € 1.273.713
- One-time setup
- € 1.075
Break-even analysis
Break-even point
EOR is more cost-effective for this duration
Monthly difference
€ 1.375 / month in favour of EOR
This comparison is based on 2025 statutory rates from Belastingdienst, UWV, CBS. Actual costs may vary depending on industry sector, pension fund obligations, and collective labour agreements (CAOs). EOR fees vary by role, employment structure, and benefits. Contact us for a tailored quote.
Get your EOR vs entity cost comparison
We will send you a side-by-side analysis based on your inputs.
Sources & methodology
How the result is computed
Each employee's monthly fully-loaded cost = gross salary × (1 + employer social-security rate + 8% holiday allowance). The entity path adds one-off setup (notary + KvK registration) and monthly ongoing accounting & legal. The EOR path applies the same employee cost without fixed overhead. Break-even is the month at which the cumulative entity cost drops below the cumulative EOR cost.
Primary sources
- 01Belastingdienst: employer social-security premiums 2025WW 2.77%, WIA 7.68%, ZVW 6.5%, Whk 0.5%: applied up to the premium wage maximum (€66,956).
- 02Dutch Civil Code Art. 7:641: holiday allowanceStatutory 8% vakantiegeld on gross annual salary.
- 03Kamer van Koophandel (KvK) registration feeFlat €75 one-off registration for a Dutch BV.
- 04Koninklijke Notariële Beroepsorganisatie (KNB): notary tariffsRepresentative BV incorporation fee range (€500–€1,500).
- 05Industry benchmarks: Dutch small-BV accounting & legalTypical annual accounting €5,000–€15,000 and legal €3,000–€10,000 for a small Dutch BV; figures cross-checked with Octagon client engagements.
Results are indicative and based on publicly available Dutch law, tax-authority guidance, and Octagon's engagement history. Always confirm specifics with a qualified adviser before acting on them.
Need expert guidance?
Our consultants can walk you through the results and recommend next steps tailored to your situation.