BV or Sole Trader? The Real Cost Since the 2026 Tax Cuts

I've reviewed this exact question for dozens of Dutch entrepreneurs this year, and the honest answer is: the breakeven point has moved. In 2026, the zelfstandigenaftrek dropped to just €1,200 down from €2,470 in 2025 and that single change has pushed the point where a BV becomes cheaper than an eenmanszaak lower than most people assume. If your profit is comfortably under €70,000, a sole trader (eenmanszaak) is almost always still cheaper. Above roughly €90,000–€100,000, a BV starts to win on tax alone. Between those numbers, it depends on your salary needs, your savings goals, and how much risk you're carrying.  If you're choosing between a bv vs eenmanszaak in the Netherlands, this isn't a decision you make once and forget. It's a calculation you should redo every time the tax rules shift and they just shifted significantly. 

What changed in the 2026 tax rules for sole traders? 

The government has been phasing out the zelfstandigenaftrek since 2023, deliberately narrowing the tax gap between employees and self-employed entrepreneurs. In 2026, that phase-out took a big step: 

• Zelfstandigenaftrek 2026: €1,200 (down from €2,470 in 2025, and a long way from €6,310 in 2022) 

• It's scheduled to drop again to €900 in 2027 the final stop in the phase-out 

• The startersaftrek stays at €2,123 for now, but the cabinet announced in April 2026 that it will be scrapped entirely from January 2027, with no transition arrangement 

• The mkb-winstvrijstelling (SME profit exemption), which you apply after the entrepreneur deductions, stays at 12.7% in 2026 

In plain terms: a sole trader who used to shave a meaningful chunk off their taxable profit is now getting a much smaller deduction. This is the main reason the "switch to BV" conversation has gotten louder in 2026 the government hasn't made a BV more attractive, it's made staying a sole trader less attractive.  Skim summary: the zelfstandigenaftrek 2026 amount is €1,200, a sharp cut from 2025, and it keeps shrinking through 2027. This alone is why more profitable freelancers are re-running the numbers this year. 

How much tax do you actually pay as an eenmanszaak in 2026? 

As a sole trader, your profit is taxed as personal income in box 1, using the same progressive brackets as an employee's salary, after subtracting your deductions.  The 2026 box 1 brackets for entrepreneurs under the state pension age: 

Bracket	Taxable income	Rate
1	Up to €38,883	35.75%
2	€38,883 – €78,426	37.56%
3	Above €78,426	49.50%

Your actual bill is lower than these headline rates because you subtract, in order: 

1. Zelfstandigenaftrek (€1,200, if you meet the 1,225-hour criterion) 

1. Startersaftrek (€2,123, if eligible, for up to 3 of your first 5 years) 

1. Mkb-winstvrijstelling (12.7% of what's left) 

So on €80,000 profit, roughly €76,700 remains taxable after deductions and the profit exemption  most of it taxed at 37.56%, with a slice at the top rate. The effective rate lands somewhere in the low-to-mid 30s as a percentage of gross profit, before any personal tax credits.  Skim summary: sole traders pay progressive box 1 rates (35.75% / 37.56% / 49.50% in 2026) on profit, reduced by the zelfstandigenaftrek, startersaftrek, and the 12.7% mkb-winstvrijstelling but all three deductions are worth less than they used to be. 

How much tax do you pay through a BV in 2026? 

A BV is a separate legal entity, so the tax happens in two stages: once inside the company, and again when money reaches you personally. 

Stage 1 Corporate tax (vennootschapsbelasting / VPB): 

Bracket	Profit	Rate
Low	Up to €200,000	19%
High	Above €200,000	25.8%

Stage 2 Getting the money to yourself: 

• Salary (DGA loon): As a director-shareholder (DGA), you're legally required to pay yourself a "customary salary" at least €58,000 in 2026, or the market rate for comparable work if that's higher. This salary is taxed as regular box 1 income, at the same rates shown above. 

• Dividend (box 2): Whatever profit you take out as dividend after VPB is taxed again, this time in box 2, at 24.5% up to €68,843 (€137,686 for tax partners together) and 31% above that. 

Stack VPB and box 2 together and the combined tax on a euro of BV profit that's eventually paid out as dividend lands somewhere between roughly 39% and 49%, depending on which bracket you're in. That's often higher than a sole trader's effective rate at moderate profit levels  the BV only pulls ahead once profits are large enough, or once you start leaving money inside the company to grow it rather than pulling it all out.  Skim summary: a BV pays 19–25.8% corporate tax, then a further 24.5–31% box 2 tax when dividend reaches you personally, plus box 1 tax on your mandatory €58,000+ DGA salary the compounding of these layers is why a BV isn't automatically cheaper. 

Sole trader vs BV: side-by-side tax comparison 

Factor	Eenmanszaak (sole trader)	BV
How profit is taxed	Personal income tax, box 1 (up to 49.5%)	Corporate tax (19–25.8%) + box 2 on dividend (24.5–31%)
Entrepreneur deductions	Zelfstandigenaftrek (€1,200), startersaftrek (€2,123), mkb-winstvrijstelling (12.7%)	Not available these are personal income tax reliefs
Mandatory salary	None	Minimum €58,000 DGA salary in 2026
Liability	Personal your private assets are at risk	Limited the BV is liable, not you personally
Setup cost	Free, register with the KVK	Notarial deed required, a few hundred euros
Admin burden	Lower simpler bookkeeping	Higher annual accounts, payroll, two tax returns
Retained profit for growth	Taxed immediately, no deferral	Can be left in the BV, taxed at 19–25.8% only until withdrawn
Rough breakeven point	Cheaper below roughly €80,000–€100,000 profit	Starts winning above that, depending on your salary and withdrawal plans

Skim summary: below roughly €80,000–€100,000 in annual profit, the eenmanszaak generally wins on tax because of the entrepreneur deductions; above that, the BV's lower corporate rate and the option to defer tax on retained profit start to outweigh the extra layer of dividend tax. 

When should you switch to a BV in the Netherlands? 

This is the question I get asked most, and the honest answer is that tax is only one input. Based on what I see in practice, a switch to BV usually makes sense when two or more of these apply: 

• Your profit is consistently above roughly €90,000–€100,000 comfortably clear of the fuzzy breakeven zone 

• You don't need to withdraw all the profit every year leaving money in the BV to reinvest or build a buffer is where a BV's lower corporate rate really pays off 

• You're carrying real liability risk client contracts, large invoices, or a business model where a lawsuit or bad debt could threaten your personal assets 

• You're planning to bring in a co-founder or investor, which is far cleaner structurally with shares than with a partnership agreement 

• You want a holding structure for future exits, so a sale of your operating company can happen tax-efficiently at the holding level 

None of these are tax questions on their own — but they all change how much the tax comparison actually matters to you. If you recognise two or more of these in your own situation, it's worth getting the incorporation itself scoped out properly FIFEC's company formation service in the Netherlands handles the notary, KVK registration, and tax setup as one process, typically within 5 to 10 business days.

Skim summary: switching to a BV is rarely a pure tax decision it tends to make sense once profit is well above the breakeven zone and you have a liability, growth, or investment reason to want a separate legal entity. 

What are the non-tax reasons to choose a BV anyway? 

Some entrepreneurs choose a BV even when the eenmanszaak is technically cheaper, because: 

• Limited liability protects personal assets your house and savings sit outside the company's balance sheet 

• Professional perception some larger clients and government tenders prefer or require contracting with a legal entity rather than an individual 

• Continuity planning a BV survives changes in ownership more cleanly than a sole proprietorship, which matters if you're thinking about succession or sale 

Skim summary: liability protection and how you're perceived by larger clients are real, non-financial reasons a BV can be worth it even before the tax math tips in its favour. 

What are the costs and downsides of running a BV? 

A BV isn't free to run, and it's worth being blunt about this before anyone switches: 

• Notarial deed to incorporate, plus KVK registration 

• Annual accounts prepared to statutory format, generally requiring an accountant 

• Payroll administration for your own DGA salary, filed monthly 

• Two separate tax filings corporate tax for the BV, personal income tax for you 

• No entrepreneur deductions  the zelfstandigenaftrek, startersaftrek, and mkb-winstvrijstelling simply don't apply once you're inside a BV structure 

For a lot of freelancers with profit in the €40,000–€70,000 range, these extra costs and the loss of entrepreneur deductions outweigh the limited-liability benefit. That's exactly why the eenmanszaak remains the default starting structure for most self-employed people in the Netherlands.  Skim summary: running a BV costs more in admin and accounting fees and gives up the entrepreneur deductions entirely  a cost that's easy to underestimate when comparing headline tax rates alone. 

Frequently Asked Questions

What is the zelfstandigenaftrek in 2026? The zelfstandigenaftrek in 2026 is €1,200, down from €2,470 in 2025. It's available if you qualify as an entrepreneur for income tax purposes and meet the 1,225-hour criterion. It will fall further to €900 in 2027. Is a BV or eenmanszaak better for tax in the Netherlands? It depends on profit level. Below roughly €80,000–€100,000, the eenmanszaak is usually cheaper because of the entrepreneur deductions. Above that, a BV's 19–25.8% corporate rate, especially combined with retained profit, often wins but only once you account for the mandatory DGA salary and dividend tax. At what profit does it make sense to switch to a BV in the Netherlands? Most advisors, including FIFEC, point to roughly €90,000–€100,000 in annual profit as the point worth investigating seriously but liability exposure, growth plans, and how much profit you actually need to withdraw each year can shift that number in either direction. What is the minimum DGA salary in 2026? The minimum "customary salary" (gebruikelijk loon) for a director-shareholder in 2026 is €58,000, or the market rate for equivalent work if that's higher. Do I lose the zelfstandigenaftrek if I switch to a BV? Yes. The zelfstandigenaftrek, startersaftrek, and mkb-winstvrijstelling are all personal income tax reliefs for sole traders and partnerships. None of them apply once you operate through a BV. Is starting a BV expensive in the Netherlands? Incorporating a BV requires a notarial deed, typically costing a few hundred euros, plus ongoing costs for annual accounts, payroll administration, and accountancy costs an eenmanszaak largely avoids. Can I switch from eenmanszaak to BV later without losing everything? Yes. Many entrepreneurs start as a sole trader and convert to a BV once profit justifies it, using a structure such as a "geruisloze inbreng" to transfer the business into the BV with deferred tax treatment. This needs proper advice to get right.

The bottom line 

The 2026 cuts to the zelfstandigenaftrek didn't make BVs more attractive they made staying a sole trader slightly more expensive, and that's shifted the breakeven point lower than a lot of entrepreneurs realise. If your profit is under roughly €70,000, don't overthink it: the eenmanszaak is still the simpler and cheaper choice. If you're pushing past €90,000–€100,000, or carrying real liability risk, it's worth running the actual numbers rather than going on instinct.  This isn't a decision to make from a blog post alone your specific salary needs, savings plans, and risk exposure change the math every time. FIFEC Consultancy works through this exact comparison with entrepreneurs across the Netherlands.