Registering as a sole proprietor
Most freelancers start as a sole proprietor (eenmanszaak). You register with the KVK Business Register, which passes your details on to the Dutch tax authorities. You then receive your VAT identification number.
VAT and the small business scheme
As a freelancer you usually charge VAT and file VAT returns. If your turnover stays below € 20,000 per year, you can opt for the small business scheme (KOR) and be exempt from VAT, but then you also cannot reclaim VAT on your costs.
Income tax and deductions
You pay income tax on your profit. If you spend at least 1,225 hours a year on your business and meet the other conditions, you are entitled to entrepreneur's deductions. Some of these deductions are being reduced in steps, so check the current amounts each year.
Employee or freelancer?
Not every assignment counts as self-employment. If you work like an employee, for example under the client's direction for a long period, the tax authorities may see it as employment. Since 2025 they enforce this more strictly. Check each assignment with your client.
Insurance and pension
As a freelancer you arrange your own pension and, if you want it, disability insurance. If you live in the Netherlands, Dutch basic health insurance is mandatory.
When a BV becomes interesting
At higher profits, with more risk or when you want to hire staff, a BV can be the better choice. Read our guide on BV or sole proprietorship, or ask us to calculate both options for your situation.
