The Excessive Borrowing Act (Wet excessief lenen)
Since January 2023, a law limits how much a DGA can borrow from their own BV. The threshold started at €700,000 and was lowered to €500,000 as of 2024. In 2026 the rule works as follows: if the total outstanding loans from all connected BVs to you (and your fiscal partner) exceed €500,000, the excess is deemed a dividend and taxed in box 2 (24.5%/31%).
Exception: mortgage loans secured by a primary residence are excluded from the €500,000 cap.
What counts toward the €500,000 threshold?
- All loans from BVs in which you hold a substantial interest (5%+)
- Loans to your fiscal partner
- Loans to family members in the first degree (children, parents)
- Mortgage loans on a primary residence are excluded
Interest rate requirements
All loans from your BV must carry a market-rate interest. The Tax Authority benchmarks this against what an independent lender would charge. Typical market rates for DGA loans: 3–6% depending on term and collateral. If the rate is below market, the difference is treated as taxable income or hidden dividend.
Formalise all loans properly
Every loan from the BV must be: documented with a written loan agreement, carry a market-rate interest, have a realistic repayment schedule, and be properly recorded in the BV's accounts. Informal withdrawals from the BV (free of a loan agreement) are treated as dividend immediately.
The neighbouring questions
Three pages sit directly alongside this one: Excessive Borrowing from Your BV in 2026, Current Account DGA (Rekening-Courant) and Interest on a Loan from Your BV.