Most freelancers in the Netherlands work as an eenmanszaak: register with the KvK, charge 21% VAT (or use the KOR below EUR 20,000 turnover) and pay box 1 income tax on profit after the self-employed deduction of EUR 1,200, the 12.7% SME profit exemption and, for starters, EUR 2,123. A B.V. pays 19% corporate tax, a customary salary of at least EUR 58,000 and 24.5% or 31% box 2 tax on dividends. In 2026 the break-even is around EUR 100,000 of profit if you take everything out; the B.V. wins earlier if you leave profit in the company. Since 2025 clients face real Wet DBA enforcement, whatever your legal form.
Freelancing in the Netherlands: the two routes
A freelancer in the Netherlands is usually called a ZZP'er: zelfstandige zonder personeel, a self-employed person without staff. Legally, almost every ZZP'er runs an eenmanszaak, a sole proprietorship. You register it with the Chamber of Commerce (KvK), you invoice clients in your own name and you pay income tax on the profit in box 1 of your personal return.
The alternative is to work through a besloten vennootschap, a B.V. The company invoices the clients, pays corporate tax on its profit, pays you a salary and, when you want, a dividend. You become a director-shareholder, a DGA in Dutch tax language. The B.V. has more paperwork and a fixed annual cost for accounts and payroll, but it caps the tax rate on profit you leave in the company.
The tax gap between the two routes has been shrinking for years. The self-employed deduction fell from EUR 3,750 in 2024 to EUR 1,200 in 2026, the SME profit exemption has been cut to 12.7% and the value of deductions is capped at 37.56%. On the B.V. side the customary salary for the director has risen to EUR 58,000. The result in 2026: below about EUR 100,000 of profit the eenmanszaak is usually cheaper; above that the B.V. starts to win, and it wins clearly if you do not need all the money now.
Eenmanszaak
Profit taxed in box 1 at 35.75% to 49.50%, with entrepreneur deductions. Simple to start and to stop.
B.V.
19% corporate tax up to EUR 200,000, salary of at least EUR 58,000 and 24.5% or 31% on dividends.
Wet DBA
Since 2025 clients face real enforcement against disguised employment. Your contract and way of working matter.
No safety net
Self-employed people have no state disability or unemployment insurance. You arrange it yourself.
KvK registration, VAT and the KOR
You register an eenmanszaak at the KvK by appointment, in person, with your passport and a Dutch address. You need a BSN (citizen service number) first, so newcomers register with their municipality before they go to the KvK. Registration gives you a KvK number and, automatically, a registration with the Belastingdienst, which then decides whether you are an entrepreneur for VAT and for income tax.
For VAT you receive two numbers. The VAT identification number (btw-id) goes on your invoices and website. The VAT tax number (omzetbelastingnummer) is used only in your contact with the tax authority. The standard VAT rate is 21% and the reduced rate is 9%. Most freelance services are at 21%; services to business clients in other EU countries are usually reverse-charged and reported in your EU sales listing.
- Choose a trade name and check it.The KvK checks the name against the register; you are protected only within the region and sector.
- Register at the KvK.In person, with ID and proof of address. You leave with a KvK number.
- Receive your VAT numbers.The Belastingdienst sends them by post within about two weeks.
- Open a business account.Not legally required for an eenmanszaak, but it makes bookkeeping and VAT returns much easier.
- Decide on the KOR.Apply at least four weeks before the date you want it to start.
The small business scheme, the kleineondernemersregeling or KOR, exempts you from VAT if your Dutch turnover is no more than EUR 20,000 a year. You then charge no VAT and file no VAT returns, but you also cannot reclaim VAT on your laptop, software or coworking desk. The scheme makes sense for freelancers who work mainly for private clients or have a small side business. For freelancers with business clients it often costs money: the client can reclaim your VAT anyway, and you lose your own deduction. Since 2025 there is no three-year lock-in, so you can leave the scheme when it stops paying off, and an EU version of the scheme exists for sellers whose EU-wide turnover stays below EUR 100,000.
Law and practice: Commercial Register Act 2007 (Handelsregisterwet); Turnover Tax Act 1968, articles 25 and following for the KOR, as amended from 1 January 2025. Thresholds and procedure: belastingdienst.nl and kvk.nl.
Income tax as an entrepreneur: what you deduct in 2026 and 2027
As a sole trader you pay income tax on your profit, not on a salary. The profit goes into box 1 with your other income. In 2026, below state pension age, the rates are 35.75% up to EUR 38,883, 37.56% up to EUR 78,426 and 49.50% above. Two general credits reduce the tax: the general tax credit of up to EUR 3,115 and the labour credit of up to EUR 5,685, both phased out as income rises.
Before the rates apply, the tax authority lets you take the entrepreneur deductions. Three matter for most freelancers. The self-employed deduction and the starter deduction only apply if you meet the hours criterion: at least 1,225 hours a year on your business, and more than half of your working time if you started within the last five years. Indirect hours count: acquisition, quotes, administration, training. Keep a log. In a tax audit the hours criterion is one of the first things checked, and the burden of proof is on you.
| Deduction | 2025 | 2026 | 2027 (plan) | Hours criterion? |
|---|---|---|---|---|
| Self-employed deduction (zelfstandigenaftrek) | EUR 2,470 | EUR 1,200 | EUR 900 | Yes |
| Starter deduction (startersaftrek) | EUR 2,123 | EUR 2,123 | Proposed: EUR 10, abolished from 2028 | Yes |
| SME profit exemption (mkb-winstvrijstelling) | 12.7% | 12.7% | 12.7% | No |
| Cap on the value of deductions | 37.48% | 37.56% | Rate of the second bracket | n/a |
The SME profit exemption is a percentage of profit after the other deductions: 12.7% in 2026. It applies without the hours criterion, so part-time freelancers get it too. The deductions are then capped: for income above EUR 78,426 they save tax at 37.56% rather than 49.50%. In practice this means that a high-earning freelancer gets less out of the deductions than the headline numbers suggest.
Profit EUR 60,000 minus the self-employed deduction of EUR 1,200 leaves EUR 58,800. The SME profit exemption takes 12.7% of that, EUR 7,468. Taxable income is EUR 51,332. Box 1 tax before credits is about EUR 18,575; after the general and labour credits the bill is roughly EUR 11,500. Add the Zvw contribution of 4.85% (EUR 2,490) and the total is about EUR 14,000, or 23% of profit.
Freelancers who invest also get the small-scale investment deduction (KIA): an extra 28% on business investments between EUR 2,901 and EUR 71,683 in 2026.
Law and practice: Income Tax Act 2001 (Wet IB 2001), articles 3.74 to 3.79a for the entrepreneur deductions and the SME profit exemption, article 2.10 for the rates, article 2.10 paragraph 2 for the cap on deductions. Amounts for 2026 and the 2027 plans: kvk.nl, belastingdienst.nl, Tax Plan 2027 as presented on 15 September 2026. The 2027 starter deduction is a proposal.
Fake self-employment: what changed in 2025 and what comes next
The Netherlands has one question at the centre of every freelance contract: is this really self-employment, or is it employment in disguise? The Dutch term is schijnzelfstandigheid. The Wet DBA (Deregulation of the Assessment of Employment Relationships Act) has been law since 2016, but the tax authority did not enforce it, except against bad faith, until the end of 2024. On 1 January 2025 the enforcement moratorium ended. The Belastingdienst again audits clients, and if it finds that a freelancer is in fact an employee, the client owes wage tax and social premiums, for 2025 without penalties in most cases and from 2026 with fines.
The test is the case law, not a form. Courts look at the whole relationship: whether the client can give instructions about how the work is done (authority, gezag), whether you are embedded in the client's organisation, whether you work for several clients, whether you carry entrepreneurial risk, set your own rate and use your own tools. Working on the same project for the same client for years, with a company laptop and a team role, looks like employment whatever the contract says.
That is why clients now ask more questions. Expect requests for your KvK extract, proof of other clients, a model agreement approved by the tax authority, a description of deliverables rather than hours, and sometimes a demand to work through an intermediary or payroll company. A B.V. does not solve this: the assessment looks at the work, not at the legal form of the contractor, although a B.V. with several clients and real risk does strengthen the picture.
The government split its reform plan. The part of the VBAR bill that would have clarified the authority test was dropped in March 2026 and moved to a future Zelfstandigenwet. The other part, a rebuttable presumption of employment for workers paid less than EUR 38 an hour (2026 reference), was adopted by the Lower House on 21 April 2026 and by the Senate on 16 June 2026. It enters into force on a date to be set by royal decree. Below that rate, the worker can rely on the presumption and the client must prove that the relationship is not employment.
Law and practice: Wet deregulering beoordeling arbeidsrelaties (Wet DBA, 2016); Civil Code, article 7:610 and the Supreme Court tests (Deliveroo, 24 March 2023); Wet invoering rechtsvermoeden van arbeidsovereenkomst op basis van uurtarief (bill 36783), adopted 16 June 2026, entry into force by royal decree.
The B.V. alternative: salary, corporate tax and box 2
A one-person B.V. can be set up by a notary in a few days, with share capital of as little as EUR 0.01. The tax logic is a split of the profit into three layers. First, the B.V. pays you a salary. As the director-shareholder you must take a customary salary of at least EUR 58,000 in 2026, or more if a comparable employee would earn more. The salary is deductible for the company and taxed in your box 1 like any wage. The company also pays the employer Zvw contribution of 6.10% on it; there are no WW or WIA premiums for a controlling DGA.
Second, the remaining profit is taxed at corporate rates: 19% on the first EUR 200,000 and 25.8% above. Third, when you take the after-tax profit out as a dividend, it is taxed in box 2 at 24.5% up to EUR 68,843 and 31% above (2026). Fiscal partners can each use the lower bracket. If you leave the profit in the company, box 2 tax is deferred until you distribute or sell, which is where the B.V. really earns its keep.
| Layer | Rate 2026 | 2027 outlook |
|---|---|---|
| Customary salary (DGA) | At least EUR 58,000, taxed in box 1 | Indexed annually |
| Employer Zvw on salary | 6.10% up to EUR 79,409 | Set annually |
| Corporate tax | 19% up to EUR 200,000; 25.8% above | Unchanged |
| Box 2 dividend tax | 24.5% up to EUR 68,843; 31% above | Proposed: 29.2% top rate for 2027 to 2030 |
Combined, profit taken out through the B.V. above the salary bears 19% plus 24.5% of the remaining 81%, which is about 38.8%, and 44.1% in the 31% bracket. The sole trader in the top bracket pays 49.50% on marginal profit, eased by the SME exemption to about 44.7% effective. So for money you take out, the gap is small. The decisive difference is profit you leave in: 19% instead of 44% or more.
The proposed box 2 cut to 29.2% for 2027 to 2030 is meant to encourage DGAs to pay out retained profits. If it passes, a dividend in the top bracket would cost 19% plus 29.2% of 81%, about 42.7%. Owners with large reserves are already planning distributions around it, but until parliament votes it remains a proposal.
Law and practice: Corporate Income Tax Act 1969, article 22; Income Tax Act 2001, article 12a (customary salary) and article 2.12 (box 2 rates); Health Insurance Act for the employer contribution. 2027 box 2 rate: cabinet proposal of 29 September 2026.
Worked examples: EUR 50,000, EUR 100,000 and EUR 200,000
The examples assume a single freelancer below state pension age who meets the hours criterion and is not a starter. They include the general and labour tax credits and the Zvw contribution, and leave out the costs of running a B.V. In the B.V. the salary is EUR 58,000, or what the company can afford if profit is lower, and all after-tax profit is paid out as a dividend in the same year.
| Profit before own pay | Eenmanszaak: total tax | B.V., all paid out | B.V., profit retained | Lower if paid out |
|---|---|---|---|---|
| EUR 50,000 | about EUR 9,800 | about EUR 12,300 | about EUR 12,300 | Eenmanszaak |
| EUR 100,000 | about EUR 34,400 | about EUR 34,700 | about EUR 25,700 | Roughly equal |
| EUR 200,000 | about EUR 82,900 | about EUR 76,300 | about EUR 44,700 | B.V. |
The B.V. cannot afford the EUR 58,000 customary salary, so the whole profit goes out as salary of about EUR 47,100 plus employer Zvw. Income tax on the salary is close to what the sole trader pays, but without the self-employed deduction and the 12.7% exemption. Result: the eenmanszaak saves about EUR 2,500 a year before the B.V.'s own running costs, which widen the gap further.
As a sole trader, taxable income is about EUR 86,250 after deductions and the tax plus Zvw is about EUR 34,400. In the B.V., EUR 58,000 salary costs about EUR 16,200 in income tax and EUR 3,500 in employer Zvw; the remaining EUR 38,500 of profit bears EUR 7,300 corporate tax and EUR 7,600 box 2 tax. Total about EUR 34,700: a draw. Leave the profit in the company and the bill drops to about EUR 25,700 this year, with box 2 tax deferred.
The sole trader pays about EUR 82,900. The B.V. pays about EUR 76,300 if everything goes out, a saving of about EUR 6,500, and about EUR 44,700 if the after-tax profit of roughly EUR 112,000 stays in the company. That retained profit can fund investments, a pension through the company or a later holding structure.
Foreign freelancers face the same choice, with one more step first: the right to work. EU, EEA and Swiss citizens register like Dutch nationals. Others need a residence permit for self-employment, which the immigration service grants on a points test, unless a treaty helps: US citizens can use the Dutch-American Friendship Treaty (DAFT) with a capital investment, and Japanese citizens have a similar route. Our note on digital nomad and self-employment permits in the Benelux covers the options. A newcomer with a 30% ruling cannot use it as a freelancer; it applies only to employees, which is one more reason some arrive through their own B.V.
Law and practice: Figures computed with 2026 rates: box 1 brackets and credits from belastingdienst.nl; entrepreneur deductions, Zvw 4.85% and 6.10%, customary salary EUR 58,000 and box 2 rates from kvk.nl; corporate tax 19% / 25.8%. Rounded to the nearest hundred euros.
Compare your profit: eenmanszaak or B.V.
A simplified comparison for a single person below state pension age. Credits, deductions and the cap on deductions are included; B.V. running costs, partner allocation and other income are not.
Eenmanszaak or B.V.: total tax on your profit in 2026
Enter your expected annual profit before your own pay. The tool compares income tax and the Zvw contribution as a sole trader with corporate tax, salary tax, employer Zvw and box 2 tax in a B.V.
The eenmanszaak is usually cheaper and much simpler.
Roughly a draw if you take everything out; the B.V. wins if you leave money in.
The B.V. is usually cheaper, sometimes by tens of thousands a year.
The Wet DBA test looks at how you work, not at your legal form.
ZZP and B.V.: frequent questions
Do I need a B.V. to work as a freelancer in the Netherlands?
No. Most freelancers start as an eenmanszaak (sole proprietorship) registered with the KvK. A B.V. becomes worth a look when profit is consistently around EUR 100,000 or more, or when you want to limit liability or keep profit in the company.
How much is the self-employed deduction in 2026?
The zelfstandigenaftrek is EUR 1,200 in 2026 and is set to fall to EUR 900 in 2027. You only get it if you meet the hours criterion of 1,225 hours a year. Starters add the startersaftrek of EUR 2,123 in 2026.
Can I use the small business VAT scheme (KOR)?
Yes, if your turnover in the Netherlands stays at or below EUR 20,000 a year. You then charge no VAT and file no VAT returns, but you also cannot reclaim VAT on costs. You must apply at least four weeks before the start date.
Has the Wet DBA been abolished?
No. The Wet DBA is still the law. What changed on 1 January 2025 is that the tax authority ended its enforcement moratorium and now checks contracts for disguised employment again. A separate law introducing a presumption of employment for rates below EUR 38 an hour was adopted in June 2026 and enters into force on a date still to be set.
What is the customary salary for a director-shareholder in 2026?
EUR 58,000 a year, or more if a comparable employee would earn more. Lower amounts are possible only if you can show that a lower salary is customary for the work, or the company cannot pay it.
Is the box 2 rate going down?
The cabinet proposed on 29 September 2026 to cut the top box 2 rate from 31% to 29.2% for 2027 to 2030. It is a proposal and needs parliamentary approval. In 2026 the rates are 24.5% up to EUR 68,843 and 31% above.
Can a foreign freelancer work in the Netherlands as a ZZP'er?
EU, EEA and Swiss citizens can register with the KvK like a Dutch national. Others need a residence permit for self-employment; US and Japanese nationals can use the treaty-based routes, including the DAFT for Americans.
Zvw, pension and the disability gap
A sole trader pays one social charge through the tax return: the income-related Zvw contribution for health care. In 2026 it is 4.85% of your profit, up to a maximum contribution income of EUR 79,409. The maximum contribution is therefore EUR 3,851. You also pay the national insurance premiums for the state pension and other schemes, but they are part of the box 1 rate in the first two brackets, not a separate bill. Separately, you buy the basic health insurance policy yourself, like every resident.
What you do not have is employee insurance. A freelancer pays no WW (unemployment) or WIA (disability) premiums and receives none of those benefits. If you fall ill, your income stops. The options are a private disability insurance policy (arbeidsongeschiktheidsverzekering, AOV), a bread fund (broodfonds) in which a group of freelancers support each other for up to two years, or the voluntary insurance offered by UWV within three months of starting. Private AOV premiums are deductible in box 1 as an income provision, but they are not cheap, and they depend on your profession and age.
The government has been working for years on a compulsory basic disability insurance for the self-employed (BAZ). As of mid-2026 there is no final bill; ministry documents mention 1 January 2030 as the earliest possible start, with a premium estimated at around 5.7% of income. Treat it as a plan, not as a cost you will pay soon.
Law and practice: Health Insurance Act (Zorgverzekeringswet), article 43 and following; 2026 rate of 4.85% and maximum contribution income of EUR 79,409 per the annual regulation. BAZ status: ministry correspondence of 2026; no bill has been adopted.