The default shutdown route
In recent years, “turboliquidatie” (turbo liquidation) has become the standard route for ending a company in the Netherlands. Nearly 80% of business closures reportedly happen via this fast-track dissolution, according to Het Financieele Dagblad (FD).
A turbo liquidation is a quick way to dissolve a BV, NV, foundation, or other legal entity, but it is only allowed if the organisation has no assets left. In other words: the legal entity has stopped operating and holds no remaining property or value.
A legal tool with a built-in blind spot
Each year, around 40,000 companies disappear through turbo liquidation, FD reports. The mechanism was introduced in 1994 to clear out empty, inactive entities and prevent misuse.
The key distinction: a company without assets can be dissolved even if debts remain. That makes turbo liquidation fundamentally different from bankruptcy, where a trustee (curator) steps in to distribute any remaining value and can investigate potential wrongdoing.
From efficiency to “plof-BV”
In most cases, turbo liquidation is legal and practical an efficient way to clean up non-performing parts of larger corporate structures.
But experts cited by FD argue that the same speed and simplicity can also attract bad actors. The term “plof-BV” is often used for entities that are effectively “popped” out of existence, leaving creditors behind.
FD estimates that the Dutch Tax and Customs Administration (Belastingdienst) alone has seen roughly €1.5 billion in tax debts evaporate over the past decade due to turbo liquidations. In an editorial comment, the newspaper describes this as a structural weakness in Dutch corporate law, especially because the process can occur without oversight from a trustee, accountant, or civil-law notary.
While it remains unclear how many cases involve outright fraud, FD argues the current framework makes it far too easy for entrepreneurs who never intended to repay creditors in the first place.
The wider damage goes beyond tax
According to FD, the impact extends well past the Treasury. Other parties left empty-handed can include:
UWV (employee insurance agency)
Pension funds
Private creditors, often SMEs
The broader societal cost, FD suggests, likely exceeds the €1.5 billion estimate and risks undermining trust in the market.
New rules since 2023 but are they enough?
Since November 2023, the Temporary Transparency Act for Turbo Liquidations has been in force. It requires directors to file additional documentation with the Chamber of Commerce (KVK), including:
A balance sheet
A statement of assets and liabilities
A justification for why the entity is assetless
The aim is to reduce abuse, improve creditor protection, and increase transparency. The law intended as temporary was extended this autumn through 2027.
Still, FD warns that without substantive checks and serious enforcement, the measures risk becoming a paper exercise. The newspaper calls for sharper legislation, arguing other countries show it can be done without stifling entrepreneurship.