Taxation: sole trader vs. BV
Sole trader: the profit is your income. You pay income tax over it, softened by the self-employed deduction (€1,200 in 2026) and the SME profit exemption (12.7%).
BV: the company pays corporate tax over the profit first: 19% up to €200,000, 25.8% above. Money that moves to you privately adds box 2 dividend tax: 24.5% up to €68,843, 31% above.
Liability
A sole trader is personally liable, with all private assets. In a BV the liability rests in principle with the company itself; your private assets stay outside it. The exception is director liability after demonstrably improper management.
Administrative load
A sole trader runs a light administration: VAT returns and the yearly income tax return. A BV asks more: payroll for the director salary, annual accounts filed at the KVK, and the corporate tax return.
Costs
A sole trader registers directly at the KVK for a one-off €85.15 — the statutory fee — and can run the administration alone. A BV starts with a notarial deed; that tariff follows the dossier: the structure, the articles and the number of companies set the price. The yearly administration of a BV is usually placed with a bookkeeper, whose fee follows the size of the administration. Within the Holdwise route, the complete setup and investment stand upfront in one written proposal.
Last verified: 11 August 2026. The exact tipping point for your figures: calculate your BV break-even point.
Where this leads
Alongside this belong Converting a Sole Trader to a BV in 2026 and Step-by-Step.
The 2026 comparison in one table
| Sole trader (eenmanszaak) | BV | |
|---|---|---|
| Profit tax | Box 1: 35.75% / 37.56% / 49.5% | Corporate tax 19% up to €200,000, 25.8% above |
| Entrepreneur reliefs | Self-employed deduction €1,200 · starter’s deduction €2,123 · SME profit exemption 12.7% | Salary and dividend mix; box 2 at 24.5% / 31% on payouts |
| Director salary | — | Customary salary, 2026 reference €58,000 |
| Liability | Private assets carry the business risk | Risk stays inside the company; private assets stand apart |
| Setup | KVK registration, €85.15 | Notarial deed plus KVK; incorporation from €0.01 share capital |
Where the tipping point sits
The rule of thumb for 2026: the BV becomes fiscally attractive around €70,000 in annual profit. Below that level, the entrepreneur reliefs and the SME profit exemption keep the sole trader ahead; above it, the 19% corporate entry rate, the salary–dividend mix and the option to hold profit inside the company tip the balance. Liability and the plan for the coming years weigh alongside the numbers — the full calculation per profit level stands in our tipping-point guide.