If you registered an eenmanszaak (the Dutch sole proprietorship) with the KVK, one question tends to come up fast: what does that actually cost you in tax? Sole proprietorship taxes in the Netherlands aren't a single line item. They're a combination of two separate calculations on the same profit, plus VAT that runs through your business without touching your bottom line at all.
The three taxes a sole proprietorship deals with
- Income tax (box 1). Charged on your taxable profit, after deductions. This is the big one.
- Zvw contribution. A separate healthcare-related levy, also based on your profit, billed directly by the Belastingdienst on top of your regular health insurance premium.
- VAT (btw). Charged on your revenue, not your profit. You collect it from clients and remit it, so for most sole proprietors it isn't really a cost at all.
The rest of this article focuses on the two that actually reduce what you keep: income tax and the Zvw contribution.
Sole proprietorship taxes in the Netherlands: a worked example
Say you run a one-person consultancy, billing €80,000 to clients over the year, with €12,000 in genuine business costs (software, a co-working desk, an accountant).
| Step | Calculation | Amount |
|---|---|---|
| Revenue | €80,000 | |
| Costs | -€12,000 | |
| Profit | Revenue minus costs | €68,000 |
| Zelfstandigenaftrek (2026) | Self-employed deduction | -€1,200 |
| MKB-winstvrijstelling (12.7%) | SME profit exemption | -€8,484 |
| Taxable profit (box 1) | €58,316 |
The zelfstandigenaftrek only applies once you meet the urencriterium, roughly 1,225 hours a year spent on the business, which most full-time freelancers clear without difficulty. The MKB-winstvrijstelling applies automatically on top of that, no separate application needed.
On €58,316, the 2026 income tax brackets work out to:
- First bracket (up to €38,883): 35.75% = €13,901
- Second bracket (€38,883 to €58,316): 37.56% = €7,299
- Income tax before tax credits: €21,200
That figure comes down further once the general tax credit and labour tax credit are applied, both of which shrink as your income rises, so the exact reduction depends on your full financial picture rather than a fixed percentage. Add the Zvw contribution: 4.85% of taxable profit, capped at a maximum contribution income of €79,409, which comes to roughly €2,828 in this example.
VAT stays outside this calculation entirely. Whatever you charged clients on top of your €80,000 in billings gets collected and paid on to the Belastingdienst, typically every quarter.
Why this isn't the same for everyone
Two freelancers with identical profit can still owe different amounts, because of:
- Hours worked. No urencriterium, no zelfstandigenaftrek, full stop.
- Other income. A part-time job on top of your business pushes your combined income further up the brackets, at a higher marginal rate on the top slice.
- How new the business is. First-time founders can also claim the startersaftrek, worth an extra deduction on top of the zelfstandigenaftrek, usable in three of your first five years.
- Tax credits. These phase out gradually as income rises, so higher earners see a smaller reduction than the freelancer in the example above.
Frequently asked questions
Is my health insurance premium included in this? No. What you pay your insurer each month is separate from the Zvw contribution described here, which is billed by the Belastingdienst itself, on top of your regular premium.
Do I pay this all at once? Usually not. The Belastingdienst sends a provisional assessment based on an estimate, generally payable in instalments through the year, followed by a final settlement once your actual return is filed.
Does this change if I incorporate as a BV later? Yes, substantially. A BV pays corporate tax on profit instead of income tax, with a completely different structure. We've mapped out roughly where that switch starts to make financial sense in the sole proprietorship vs BV tipping point.
Getting this right when you're still learning the system
None of this arithmetic is complicated on its own. What trips people up is everything around it: whether you actually meet the urencriterium, how tax credits interact with a second income source, and what happens when a provisional assessment doesn't match what you set aside. Founders new to the Netherlands run into this even more, since none of it maps cleanly onto how tax works back home.
New to the Netherlands? At Sophy &Co. we work with expat founders well before a company is even registered, not only once the eenmanszaak already exists. Book a call and we'll talk you through what setting up and running a business here actually involves, in plain English.
Our bookkeepers cover English, Dutch, Italian, Chinese, Spanish, Papiamento, German, and some French and Polish between them, so you can explain your situation however it's easiest for you. The team is woman-led, includes both women and men, and is proudly LGBTQIA-friendly. We can also put you in touch with the banks, lawyers, and notaries in our network, plus other founders who've been through the same setup process.
Check our services and pricing, or read how it works. Ready to talk? Get in touch.
For the official figures and rules, see the Belastingdienst on income tax for entrepreneurs or the Netherlands Enterprise Agency on sole proprietorships.