BV vs. Sole Trader — Which is Right for You?
The most important financial decision for Dutch entrepreneurs. Compare tax rates, liability and the exact profit threshold where a BV becomes more advantageous.
The core difference
A sole trader (eenmanszaak/ZZP) is the simplest structure — you and your business are legally one entity. All profits are taxed as personal income (up to 49.5%). A BV is a separate legal entity: limited liability, corporate tax of 19%, and the option to pay yourself a salary plus dividends.
Tax comparison 2026
| Annual profit | Sole trader (net) | BV — full extraction | BV — partial extraction |
|---|---|---|---|
| €50,000 | €33,500 | €30,500 | €36,000 |
| €80,000 | €49,500 | €50,000 | €55,000 |
| €120,000 | €68,000 | €75,000 | €85,000 |
| €200,000 | €103,000 | €122,000 | €145,000 |
Indicative. "Partial extraction" = minimum DGA salary + retain surplus in BV. Based on 2026 tax rates.
The tipping point: when does a BV pay off?
The rule of thumb: when your annual profit consistently exceeds €80,000, a BV becomes advantageous. The exact threshold depends on how much you need privately — if you can leave some profit in the BV, the advantage kicks in earlier.
What you lose switching from sole trader to BV
- Self-employed deduction (€1,200 in 2026 — was €2,470 in 2025)
- SME profit exemption (13.31%)
- Simple administration — BV requires annual accounts, corporate tax return and payroll
What you gain
- Limited personal liability — your private assets are protected
- Corporate tax of 19% vs. income tax up to 49.5%
- Flexible income: combine minimum salary with dividends
- Holding structure: protect profits and plan a tax-efficient exit
- More credibility with large clients and investors