AI & Software

At what MRR is a Dutch BV worth it? The arithmetic, written out

Updated: 6 October 2026 Holdwise editorial team MRR Tipping point Comparison

With the MRR calculator, you get the answer in one click. If you know the steps behind it, you can explain the result to your partner or your accountant.

Short answer

The tipping point between sole trader and BV (besloten vennootschap, the Dutch private limited company) depends on the profit you can leave in the company. As a sole trader, you take the €1,200 self-employed deduction and the 12.7% SME profit exemption off your profit. You then pay progressive income tax of up to 49.5%. In a BV, the company pays you the customary salary (norm €58,000) and pays 19% corporate tax on the rest, up to €200,000 (25.8% above). Box 2 tax applies only to what you pay out. If you can retain profit, the BV becomes the better choice at about €78,350 to €87,600 of yearly profit. If you spend everything, that point is between €113,000 and €149,000.

At Holdwise, we keep this answer up to date and change it when the rules change.

The sole trader

Your yearly profit (MRR minus costs, times twelve) is your personal income. First you take off the entrepreneur deductions. These are the €1,200 self-employed deduction, the €2,123 starter’s deduction in early years, and the 12.7% SME profit exemption on the remainder. The rest is taxed under progressive income tax up to 49.5%. You also pay the income-dependent healthcare contribution of 4.85%, up to its cap. At modest profits, the tax is relatively low. At higher profits, a much larger part is taxed at the top rate.

The BV

First comes the salary. The customary salary is €58,000 (2026), or lower for up to three years while a new BV is still unable to pay it. It is taxed like any wage. The BV then pays 19% corporate tax on profit above the salary, up to €200,000. After that, you choose. You can retain the profit in the company, taxed at only 19% for now. You can also distribute it, with box 2 tax on top: 24.5% up to €68,843 and 31% above.

Why the tipping point changes

If you take out all profit, the two options give similar results for a long time. The combined BV tax (19% + box 2) and the personal tax stay close. At small profits, the fixed costs of a BV are a larger share. Now count the profit you leave in the BV as your own money, which it is. The BV then gives a clear advantage from about €78,350 to €87,600 of profit, and this advantage increases every year. The calculator therefore asks what you need privately. Your tipping point depends on that amount.

You can arrange the notary, the KVK registration and the VAT number from abroad. See setting up a BV in the Netherlands.

Every quarter and every year, a Dutch company keeps records and files returns. What does it cost to hand this work over? See bookkeeping in the Netherlands for owners abroad.

Other factors

The result also depends on personal tax credits, pensions and private deductions. The difference is usually a few thousand euros, and it rarely changes the conclusion. Also consider factors outside tax, such as liability, readiness for a sale and structure. See the BV guide and the solo holding. We can review your exact numbers, including special cases, free of obligation.

Other reasons for a BV

The tipping point above is purely financial. In practice it often comes earlier, for three reasons. Liability. A BV has its own obligations. Contracts, claims and debts stay with the company. Your home and savings remain yours. Counterparties. Large clients, platforms and lenders regularly ask for a BV before they sign. Retained profit. On profit you leave in the company, you pay 19% corporate tax up to €200,000. That is the main reason to have a holding structure. Each of these can be a reason to incorporate earlier than the calculation suggests. Read the full comparison in sole trader or BV.

Free advice

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We help you set up your company or holding in the Netherlands, from the notary to your tax numbers. Tell us where you stand or what you are planning. You get free advice on your next step.

Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

Why count retained profit as value for me? +

It is your money, taxed once with corporate tax (19% up to €200,000 profit, 25.8% above), and you can use it for growth or distribute it later. If you compare only what you take home, the BV looks worse than it is for anyone who leaves part of the profit invested.

My MRR swings hard month to month: which number do I use? +

Use a cautious rolling average of recent months. The tipping point is a range of profit levels, so base your decision on the trend.

Do the rates change the point every year? +

A little, yes. The calculator always uses the rates of the current year from one central source, so the result is updated automatically.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 6 October 2026