Sole proprietorship (eenmanszaak) or BV: which fits you?
An eenmanszaak (sole proprietorship) is the cheapest way to start in the Netherlands: €85.15 KVK fee, no notary, and income-tax deductions such as the self-employed deduction (€1,200 in 2026) and the 12.7% SME profit exemption. A BV costs a notary (about €500 to €1,500) and annual accounts, but shields your private assets and taxes profit at 19% corporate tax up to €200,000. At modest profit the sole proprietorship wins; the BV pays off with real liability risk or profit you can leave inside the company.
Eenmanszaak versus BV at a glance
| Eenmanszaak | BV | |
|---|---|---|
| Liability | Personal and unlimited; a spouse married in community of property is liable too | The BV is liable; directors only in case of mismanagement or personal guarantees |
| Set-up | Online form with DigiD plus a KVK appointment | Notarial deed; the notary registers with the KVK and the UBO register |
| Set-up cost | €85.15 | €85.15 plus notary, about €500 to €1,500 |
| Share capital | None | From €0.01 |
| Tax on profit | Income tax, box 1: 35.75% up to €38,883, 37.56% up to €78,426, 49.50% above (2026, provisional) | Corporate tax 19% up to €200,000, 25.8% above (2026); box 2 on dividends |
| Deductions | Self-employed deduction €1,200, starter's deduction €2,123, SME profit exemption 12.7% (2026, with 1,225 hours) | None; mandatory director's salary of at least €58,000 (2026) |
| Annual obligations | VAT returns and income tax return | VAT, corporate tax, payroll, annual accounts filed with the KVK |
| UBO filing | Not required | Required for holders of more than 25% of shares or votes |
| Co-owners | No; partners form a vof | Yes, through shares |
| Foreign owners | Owner needs a BSN and, outside the EU, a permit allowing self-employment | Shareholders may be foreign persons or companies; directors need a BSN to register |
Figures: belastingdienst.nl, self-employed deduction 2026; box 1 and box 2 rates 2026; corporate tax rates; business.gov.nl, eenmanszaak.
How does liability differ for expats?
With an eenmanszaak you are the business: creditors can claim your savings, car and home, and your spouse's assets if you married in community of property. A BV is a separate legal person, so you can lose what you invested but not your private assets, unless you mismanaged the company or co-signed a loan personally. For a consultant with a laptop the difference is small; for anyone importing goods, employing staff or signing long leases it is often decisive.
When does a BV pay less tax?
A sole proprietor pays income tax on the whole profit after the self-employed deduction (€1,200 in 2026, only with at least 1,225 hours a year), the starter's deduction (€2,123, at most three times in the first five years) and the 12.7% SME profit exemption. A BV pays 19% corporate tax up to €200,000, but the director must first draw a customary salary of at least €58,000 (2026), taxed in box 1, and dividends are taxed in box 2 at 24.5% up to €68,843 and 31% above (provisional 2026 rates). The self-employed deduction has been cut back over recent years, so the break-even point is lower than it used to be; the KVK still describes the eenmanszaak as suited to expected profit below €150,000 a year. The real driver is how much profit you can leave inside the BV instead of taking it out privately.
What does each form cost per year?
- Eenmanszaak: no mandatory annual accounts; bookkeeping and the tax return can be done yourself or outsourced.
- BV: payroll for the director's salary, a corporate tax return and annual accounts filed with the KVK by 8 November for a calendar year; business.gov.nl estimates €600 to €1,800 a year in bookkeeping, doubling with a holding.
- Both: VAT returns, insurance and a workplace or registered address. Coworking in this catalogue starts at €96 a month, a virtual office at €73.
How do you register each form with the KVK?
A sole proprietorship you register yourself: online form with DigiD, then an appointment at a KVK office with your passport, usually a week before or after starting. A BV is registered by the notary, who also files the UBOs. Both need a visiting address that is not a PO box and where you are regularly present. See Registering with the KVK as an expat and Setting up a Dutch BV.
Can you switch from eenmanszaak to BV later?
Yes, at any time. The KVK schedules a separate appointment and the notary incorporates the BV. For tax you choose between a taxable contribution (settling on hidden reserves and goodwill) and a tax-neutral conversion (no settlement, but the shares are locked for three years). Both can take effect retroactively if a preliminary agreement or letter of intent is registered with the Tax Administration in advance. Most expats therefore start as a sole proprietor and convert once profit or risk justifies it.
Looking for a workplace or registered address for the new company? Compare coworking in Amsterdam and virtual offices in Amsterdam.