Sole proprietorship (eenmanszaak) or BV in the Netherlands? Which is better at which profit level

Everyone starting a business in the Netherlands faces this first decision: sole proprietorship (eenmanszaak) or private limited company (BV)? The rule of thumb circulating online, “BV above € 100,000 profit”, is a starting point but misleading on its own. The tax difference depends on whether you leave profit in the company, on your liability risk and, for a founder coming from Türkiye, on your residence permit plan. This article compares the two structures under four headings.

The basic difference: person or company?

An eenmanszaak is identical with you. You register at the KVK (registration fee € 85), no notary is needed, and you can start trading in a day. But you are personally and without limit liable for all debts of the business; the business and your private assets are not legally separated.

A BV is a separate legal entity. It is formed by notarial deed (notary fee about € 1,050, KVK € 85) and there is no legal minimum capital. As a rule the BV is liable for its debts; as shareholder and director you are not held personally liable, apart from exceptions such as mismanagement. We described the formation steps on the formation and structuring page.

Tax: two different systems

The profit of an eenmanszaak is your personal income and is taxed in the progressive brackets of income tax (box 1); the top rate is 49.5%. In return there are entrepreneur-specific deductions:

• Zelfstandigenaftrek (self-employed deduction): a fixed deduction for those working at least 1,225 hours a year; it has been reduced every year recently and is a small amount in 2026.
• Startersaftrek: an extra deduction in the first years.
• MKB-winstvrijstelling: a percentage of the profit (12.7% in 2026) is exempt from tax.

In a BV the profit is first subject to corporate income tax: 19% up to € 200,000 and 25.8% above. Then two more layers follow: the DGA salary you must pay yourself (subject to income tax; the minimum is set annually, around € 56,000–58,000 in 2026) and box 2 dividend tax when you distribute profit (24.5% in the first bracket in 2026, 31% above). We worked through the corporate tax calculation in Dutch corporate income tax 2026.

Which is advantageous at which profit level?

A rough comparison, assuming you take all the profit out every year:

Annual profit	Eenmanszaak	BV
€ 50,000	Low effective burden thanks to entrepreneur deductions, usually better	Heavier because of the mandatory DGA salary and the double layer
€ 100,000	Roughly the break-even zone	The advantage starts if you can leave profit in the company
€ 150,000 and above	The 49.5% top bracket becomes decisive	Corporate tax plus deferred box 2 usually gives a lower total burden

The decisive sentence is this: the BV’s tax advantage comes from being able to keep profit in the company for growth or investment. If you withdraw all profit every year, a BV is rarely cheaper below € 150,000. If you accumulate part of the profit in the company, the gap between the tax paid in the BV (19%) and the top bracket in a sole proprietorship (49.5%) creates significant cash for investment.

The figures change every year and depend on your personal situation (mortgage, partner’s income, income in Türkiye); this table shows the direction, the decision is made with a tailored calculation.

Non-tax reasons are often decisive

• Liability: if you employ staff, hold stock or sign large contracts, unlimited personal liability is a real risk. A BV keeps that risk in the company.
• Partnership with a Turkish company: if a Turkish company or partner will hold shares, an eenmanszaak is not possible; co-ownership only works in a BV. We also covered this option in Dutch branch or new BV?.
• Residence permit: if you do not live in the Netherlands you cannot set up an eenmanszaak; a BV can be formed from abroad (see setting up a Dutch BV as a non-resident). If you will obtain a residence permit under the Ankara Agreement, both structures are possible; see our Ankara Agreement article. If you will bring staff as highly skilled migrants, a BV is the better fit for becoming a recognised sponsor.
• Perception and banking: corporate clients and banks take a BV more seriously; in large contracts the “BV” suffix makes a difference.
• Administrative burden: a BV requires annual accounts, filing with the KVK, a corporate tax return and DGA payroll; bookkeeping costs are higher than for an eenmanszaak. We listed these items in The real cost of setting up a Dutch BV.

Can you switch later?

Yes. Starting as an eenmanszaak and converting to a BV once the business grows is common. Dutch tax law allows the business to be transferred into a BV tax-free (geruisloze inbreng), but there are conditions and timing rules, and certain dates must be met for retroactive effect. The reverse, from BV to eenmanszaak, is also possible but less common.

So for a founder living in the Netherlands who starts small and with little risk, “eenmanszaak first, BV when profit and risk grow” is a reasonable path. For structures linked to a Turkish company, with partners, or formed from abroad, you usually start directly with a BV.

Conclusion

An eenmanszaak is fast, cheap and tax-light at small profits; a BV limits liability, allows partners and formation from abroad, and gives a tax advantage when you can accumulate profit in the company. The profit threshold matters but is not the only criterion. In our structure analysis we address these questions with figures and together with your permit plan; reach us via the contact page for a free 15-minute intro call.