1. The low corporate rate: 19% up to €200,000
The first €200,000 of BV profit is taxed at 19%; above it, 25.8%. A sole trader pays up to 49.5% income tax over the top of the profit.
2. The participation exemption
In a holding structure, dividends and share gains from subsidiaries arrive tax-free. Parking profit inside the holding stays fiscally clean.
3. Small-scale investment deduction (KIA)
Investments in business assets earn extra deduction. In 2026: 28% over investments between €2,901 and €71,683; from €71,684 to €132,746 a fixed €20,072 applies, tapering to zero at €398,236.
4. Energy (EIA) and environmental (MIA) investment deductions
Energy-efficient and environmentally friendly assets earn additional deductions on top.
5. The innovation box
Profit from self-developed intangibles (patents, software, plant breeders’ rights) is taxed at an effective 9% instead of the regular corporate rate (article 12b Corporate Tax Act). Details: the innovation box in 2026.
6. The fiscal unity
A qualifying holding and operating company can form a fiscal unity, offsetting losses of one BV against profits of the other. See fiscal unity: loss relief and benefits.
The foundation under all of it: the 2026 corporate tax rate; the personal layer above it runs through the customary DGA salary. Last verified: 19 July 2026.