Most freelancers in the Netherlands start with an eenmanszaak (sole proprietorship), often called ZZP. As the business grows, the question comes up: should I move to a BV (private limited company)? There is no single turnover figure where a BV becomes better. It depends on your profit, what you need to live on, your risks and your plans. Here is how the two compare.
The key differences
| ZZP (eenmanszaak) | BV | |
|---|---|---|
| Setting up | Registration at the KvK | Deed of incorporation at a notary, then KvK registration |
| Liability | You are personally liable for business debts | The company is liable; as director you can still be liable in some situations |
| Tax on profit | Personal income tax (box 1), with entrepreneur deductions | Corporate income tax on the company's profit |
| Paying yourself | All profit is your income | Salary through payroll, plus optional dividend |
| Annual obligations | Income tax return | Annual accounts, KvK filing, corporate tax return, payroll, personal tax return |
| Running costs | Low | Higher: notary, bookkeeping, annual accounts and payroll |
How a ZZP is taxed (2026)
Your business profit is added to your other income and taxed in box 1, at rates of 35.75%, 37.56% and 49.50% in 2026. Before that, several entrepreneur benefits reduce your taxable profit:
- Self-employed deduction (zelfstandigenaftrek): €1,200 in 2026, if you meet the hours criterion.
- Starters' deduction (startersaftrek): an extra €2,123 in 2026 if you are a recent starter.
- SME profit exemption (MKB-winstvrijstelling): 12.7% of your profit after the deductions above.
The hours criterion means spending at least 1,225 hours a year on your business. If you also have a job, extra conditions may apply. Note that the self-employed deduction has been reduced sharply in recent years, which makes the ZZP tax advantage smaller than it used to be.
How a BV is taxed (2026)
A BV pays corporate income tax on its profit: 19% on the first €200,000 and 25.8% above that. As director-shareholder (DGA) you then pay personal tax on what you take out:
- Salary is taxed in box 1 like any wage. A DGA must take a customary salary (gebruikelijk loon), which is at least €58,000 in 2026 in most cases, unless a lower amount can be justified.
- Dividend is taxed in box 2: 24.5% up to €68,843 and 31% above that in 2026.
Profit you leave in the BV is only taxed at the corporate rate until you pay it out. That makes a BV attractive if you earn more than you need to live on and want to build a buffer or invest.
When a BV often makes sense
- Your profit is comfortably above the customary salary and you don't need all of it for private spending.
- You want to limit personal liability, for example because of large contracts or product risk.
- Clients or agencies prefer to contract with a BV.
- You plan to hire staff, bring in partners or investors.
When staying ZZP is usually fine
- Your profit is moderate and you need most of it to live on.
- Your liability risks are low or insured.
- You value simple, low-cost administration.
Other things to consider
- Timing: converting at the start of a financial year keeps the administration clean.
- Transferring your business: moving an existing eenmanszaak into a BV can be done in a tax-friendly way, but it requires planning with a notary and tax adviser.
- Mortgage and pension: banks look at your income differently as a DGA, and you'll need to arrange your own pension either way.
- Residence permits: if your permit depends on self-employment, check the impact before changing your legal form.
Not sure which is right for you? I can compare both options with your actual figures and give you written advice. Start with a free 30-minute Dutch Tax Health Check.
Figures are for 2026 and can change each year. This article is general information, not personal tax advice.