Buy a laptop, a van, or new machinery for your Dutch business, and you already know you can depreciate it over time. The investment deduction in the Netherlands is a separate benefit on top of that: an extra deduction from your taxable profit, purely because you invested that year. The main version is the small-scale investment deduction, known locally as the KIA, with two related schemes for sustainable purchases: the MIA and the Vamil. Here's how the 2026 brackets work, who qualifies, and a worked example.
Investment deduction (KIA) brackets for 2026
| Total investment in a calendar year | Small-scale investment deduction (KIA) |
|---|---|
| Up to €2,901 | 0%, no deduction |
| €2,901 up to €71,683 | 28% of the investment amount |
| €71,684 up to €132,746 | A fixed €20,072 |
| €132,747 up to €398,236 | €20,072, reduced by 7.56% of the amount above €132,746 |
| Above €398,236 | 0%, no deduction |
Most freelancers and small businesses only ever deal with the first real bracket: 28% on everything between €2,901 and €71,683. The higher brackets exist mainly for companies making a large one-off investment, such as a building or a full production line.
What the investment deduction actually is
This isn't a discount on your tax bill, it's an additional deduction from your profit, on top of regular depreciation. That means the actual euro value depends on your own marginal tax rate: the higher the rate your profit is taxed at, the more a given deduction is worth to you.
There are three versions of the investment deduction in the Netherlands, and they don't all apply to the same purchases:
- KIA (kleinschaligheidsinvesteringsaftrek): the general scheme, available for almost any qualifying business asset.
- MIA (milieu-investeringsaftrek): a higher rate, 27%, 36% or 45% depending on how sustainable or innovative the asset is, for items listed on RVO's Environmental List (Milieulijst).
- Vamil (willekeurige afschrijving milieu-investeringen): not an extra percentage, but the right to depreciate 75% of the investment in one go, in whichever year suits you best, instead of spreading it over the usual period.
The MIA and Vamil frequently apply to the same asset at once, think of an electric delivery van or a heat pump. The KIA sits separately and covers the rest of your regular business purchases.
What counts toward the KIA
An asset only counts if it costs at least €450 excluding VAT, and your total qualifying investments for the year need to add up to more than €2,901. A few purchases founders new to the Dutch system often get wrong:
- Software and licenses you use for longer than a year count just as much as physical equipment.
- An ordinary passenger car usually doesn't qualify for the KIA, unless it's a genuinely low-emission or fully electric car, a taxi, or a vehicle used for professional transport.
- Land and residential property fall outside the scheme entirely, even when used for business.
- Second-hand assets are fine for the KIA. That's not true for the MIA, which only applies to new, unused equipment.
A worked example: laptop, tools and a delivery van
Say you're starting a small contracting business and in the same year you buy a laptop (€1,500), tools and fit-out (€2,000), and a second-hand delivery van (€18,000). Together that's €21,500, comfortably above the €2,901 threshold and within the first bracket.
- KIA: 28% × €21,500 = €6,020 in extra deduction, on top of normal depreciation.
- If your total profit falls in the top tax bracket of 49.5%, that extra deduction saves roughly €2,980 in tax. In a lower bracket the euro saving is smaller, but the mechanics work the same way.
You claim that €6,020 directly in your tax return, there's no separate application to file with the Belastingdienst for the KIA itself.
Sell the asset again soon? Watch the disposal add-back
Sell a business asset within five years of the year you invested in it, and you may have to add back part of the KIA you originally claimed, a rule known as the desinvesteringsbijtelling. This only applies if the sale price is higher than the asset's book value at that point. If you're buying with the deduction in mind, factor in that five-year window before you plan to sell.
Frequently asked questions
Do I need to apply for the investment deduction separately? Not for the KIA, you simply include it in your tax return. For the MIA and Vamil, you register the investment with RVO against the Environmental List before claiming it in your return.
Can I claim the KIA and MIA on the same purchase? That depends on the specific asset and scheme. Check it case by case, stacking two schemes on the exact same investment isn't always allowed or worthwhile.
What if my investments for the year fall just short of €2,901? Then you get no KIA at all for that year. If a purchase is flexible, it can sometimes be worth moving it a few weeks earlier or later so your total lands above the threshold.
Does a purchase bought on installment still count? Yes, what matters is when the asset was put into use and the obligation was entered into, not when you make the final payment.
New to running a business in the Netherlands?
Figuring out which scheme applies to which purchase, and whether to time an investment for this year or January, is exactly the kind of calculation that goes wrong when it's handled alone, especially coming from a tax system that works differently. At Sophy &Co. we help expat entrepreneurs with this long before a company is even registered, and can connect you with our network of trusted partners: banks, lawyers, notaries, and other expats who've been through the same setup.
We're a woman-led, multilingual team of bookkeepers, both women and men, and proudly LGBTQIA-friendly. Between us we speak English, Dutch, Italian, Chinese, Spanish, Papiamento, German, and some French and Polish, so book a call and explain your situation in whatever language feels easiest.
We keep track of this for you
Working out which deduction applies, and whether a purchase is worth timing differently, is exactly the kind of detail that's easy to miss doing your own books. At Sophy &Co. you share your invoices with us, and we make sure every deduction you're entitled to actually ends up in your return, for a fixed monthly fee.
Still weighing whether a sole proprietorship or a BV suits your plans better now that you're investing more seriously? Read our guide to sole proprietorship taxes in the Netherlands.
Take a look at our services and pricing, or get in touch for a no-obligation conversation.
Learn more
For the official conditions, see the Dutch Tax and Customs Administration's page on the small-scale investment deduction (in Dutch) or RVO's conditions for the MIA and Vamil.