The VBI is a company whose activities are solely investing while spreading the risk. The VBI can therefore not run a business, not have periodic payment or pension obligations, and not have a direct interest in real estate in The Netherlands. Providing loans is also not permitted. The tax authorities impose requirements on the manner in which investments are made in a VBI.

The VBI can only invest in financial instruments, which are restricted by law. These are for example securities (shares, bonds), bank balances (payment, savings and deposit accounts), share swaps and forward rate agreements. The legal form has to be a public limited company or an open fund for joint accounts.

The advantages of a VBI are:

• By request a VBI is exempt from corporate taxes;
• The VBI is not taxable for dividend tax;
• The VBI is not required to distribute.