Freelancing vs. B.V. in the Netherlands: What’s Best for You in 2025?
If you’re starting a business in the Netherlands, one of the biggest choices you’ll face is whether to work as a freelancer (ZZP) under an eenmanszaak or set up a B.V. (private limited company). This decision affects your taxes, liability, and how you take money out of your business. Let’s break it down in a straightforward way.
Tax Differences
As a freelancer with an eenmanszaak, all your profit is taxed as personal income.
In 2025, income tax is divided into three brackets:
35.82% on income up to €38,441
37.48% on income from €38,441 to €76,817
49.50% on income over €76,817
Additionally, freelancers can benefit from several tax deductions:
Zelfstandigenaftrek (self-employed deduction): €3,750 in 2025, decreasing yearly until 2027.
Startersaftrek (starter’s deduction): €2,123, available for the first three years.
MKB-winstvrijstelling (small business profit exemption): 14% of taxable profit is tax-free.
Employment tax credit (arbeidskorting): Up to €5,599 in 2025, reduced if taxable profit exceeds €43,071.
General tax credit (algemene heffingskorting): Maximum of €3,068, decreasing as income rises.
A B.V. is taxed differently. The corporate tax rates for 2025 are:
19% on profits up to €200,000
25.8% on profits over €200,000
If you own a B.V., you must pay yourself a minimum salary (DGA salary), which in 2025 is at least €56,000 or higher if the government deems it appropriate for your role. This salary is taxed like regular employment income. Any remaining profit in the business after corporate tax can be distributed as dividends, which are taxed at 31% under Box 2 of the Dutch tax system.
Liability Protection
One of the biggest differences is liability. As a ZZP’er, your personal and business finances are the same, meaning if your business runs into financial trouble, your personal assets, such as your home or savings, could be at risk.
A B.V. is a separate legal entity, meaning your personal finances are generally protected unless you personally guarantee loans or mismanage the company.
When Does a B.V. Make Sense?
A common rule of thumb is that a B.V. becomes more beneficial when your net profit reaches around €150,000 per year. Below that, the tax deductions available to ZZP’ers often make it the better choice. A B.V. is also useful if you plan to reinvest profits rather than take everything as salary since it allows you to delay personal taxation by keeping money in the business.
Example Calculation
Let’s say you charge €110 per hour, work 160 hours per month, and do that for 10 months.
That gives you an annual revenue of €176,000.
Here’s a rough idea of how your income might break down in both cases:
As a ZZP’er:
Revenue: €176,000
Taxes after deductions: about €66,700
Net income: around €109,300
As a B.V.:
Revenue: €176,000
Salary: €56,000 (take-home pay of around €36,000 after payroll taxes)
Profit before corporate tax: €120,000
Corporate tax: around €22,800
Profit after tax: €97,200
If taken as dividends: about €67,000 after dividend tax
Total net income: around €103,000
These numbers are estimates and don’t account for all possible expenses, deductions, or personal situations. Your actual tax situation may vary, so consulting an accountant is recommended.
Other Things to Consider
A ZZP structure is simpler and cheaper to manage. You don’t have to deal with corporate tax filings; bookkeeping is more straightforward. You can always switch to a B.V. later if your business grows. However, as a freelancer, you need to arrange your own pension and insurance, which can be costly.
If your work comes with financial risks, a B.V. might be worth considering for liability protection. And if you plan to hire employees or seek investors, a B.V. is usually the better option.
Conclusion
If your net profit is below €150,000 and you want to keep things simple, a ZZP structure is probably the best option. If you expect to earn more, plan to reinvest money, or need legal protection, a B.V. might be the better choice.
Some business owners also use a two-B.V. structure (Holding B.V. + Operating B.V.) for additional protection and tax efficiency.
Choosing the right structure can have a big impact on your finances, so if you’re unsure, it’s best to get expert advice.
If you need help deciding what’s right for you, book a consultation and let’s figure it out together.