Start as a sole trader or set up a BV (private limited company)? We compare tax burden, liability, costs and administration. With a calculation example.
A sole trader (eenmanszaak) is the simplest legal form for entrepreneurs in the Netherlands: you register with the KvK (Chamber of Commerce) and can start immediately. You pay income tax on your profit and are entitled to the self-employed deduction (zelfstandigenaftrek) and the SME profit exemption
Advantages Easy to set up — registration with the KvK is sufficient Low costs — no notary, no starting capital required Tax benefits — self-employed deduction (zelfstandigenaftrek) (€ 1,200 in 2026), starter's deduction, SME profit exemption (12.7%) Simple administration — no annual accounts require
Advantages Limited liability — only the BV is liable, not you personally (with exceptions) Lower tax at high profits — corporate income tax is 19% up to € 200,000 and 25.8% above that Professional image — some clients prefer a BV
Giroo B.V. — KVK 99500256 — Stratumsedijk 6, 5611 ND Eindhoven — info@giroo.nl — giroo.nl