Why the tipping point is a range
The tipping point depends mainly on how much of your profit you need for private spending. If you take all profit as private income, the advantage of a BV is much smaller than when you keep some profit in the BV.
Scenario 1: All profit taken out privately
You take all profit privately, as salary and dividend from the BV, or as business income as a sole trader.
| Profit | Net sole trader | Net BV (all profit taken out) | Advantage BV |
|---|---|---|---|
| €70,000 | approx. €46,500 | approx. €45,000 | Sole trader better |
| €90,000 | approx. €57,500 | approx. €58,000 | Roughly equal |
| €120,000 | approx. €71,000 | approx. €74,000 | BV better by ~€3,000 |
| €200,000 | approx. €106,000 | approx. €120,000 | BV better by ~€14,000 |
Scenario 2: €40,000 a year kept in the BV
You keep €40,000 per year in the BV, for investments or later use, and take the rest privately.
| Profit | Net sole trader | Net BV (part of profit kept in BV) | Advantage BV |
|---|---|---|---|
| €70,000 | approx. €46,500 | approx. €50,000 | BV better by ~€3,500 |
| €100,000 | approx. €61,500 | approx. €67,000 | BV better by ~€5,500 |
| €150,000 | approx. €85,000 | approx. €94,000 | BV better by ~€9,000 |
General guideline
In 2026, the tipping point is between €78,350 and €87,600 annual profit when you keep the profit in the BV, and between €113,000 and €149,000 when you pay everything out (the Holdwise Threshold). Below about €78,350, a sole trader business is usually cheaper.
You can set up the company by power of attorney, from any country. This usually happens within one week once all documents are complete. See setting up a BV in the Netherlands from abroad.
Are the Dutch terms new to you? Start with company formation in the Netherlands for non-residents. There you can read about the legal forms, the documents, the costs and the comparison with Germany.
Related articles
You can read more in Sole Trader or BV, BV vs. Sole Trader and Converting a Sole Trader to a BV in 2026.