Self-employed (ZZP / freelancer) in the Netherlands

Self-Employed, zzp or freelancer

1. Registering as a Self-Employed Person

a) BUSINESS PLAN

• Business idea.
• Strategies and target audience.
• Research and define the market.
• SWOT analysis: strengths, opportunities, weaknesses, and threats.

b) LEGAL FORM

• Trade name.
• Legal form (eenmanszaak, vof, BV).

c) COMPANY REGISTRATION

• Registration with the KVK (Dutch Chamber of Commerce).
• Appointment at the KVK.
• Payment for registration and KVK fees.
• You will receive your VAT number (BTW nummer).

d) BUSINESS ADMINISTRATION

• Tax obligations (quarterly VAT and annual income tax).
• Keep proper financial records.
• Tax-In offers the first accounting–administrative platform.

1.1. Conditions to Be Considered an Entrepreneur in the Netherlands

There are three criteria:

• You supply goods or services.

• It is more than symbolic payment; the goal is to make future profit.

• You participate in regular business transactions and have sold your product or service more than once during the year.

1.2. When You Are Not Considered an Entrepreneur in the Netherlands

• Very small profits (€2,200 per year – 2025).

• It is a hobby (friends and family).

• The sale of products or services is not regular.

2. Legal Forms of Business

Main legal forms:

• Eenmanszaak (zzp) / freelancer: Sole proprietorship or self-employed.

• Vennootschap onder firma (vof): Partnership without limited liability.

• Besloten vennootschap (bv): Private limited company.
  There are also other legal forms of business.

2.1. Characteristics of Each Legal Form

2.1.1. Sole Proprietorship – Eenmanszaak (zzp)

• Registration with the KVK (Dutch Chamber of Commerce).

• Sole owner.

• Not a legal entity.

• Personally liable for business debts.

• If hiring employees: responsible for payroll taxes.

• VAT and income tax declarations.

2.1.2. Partnership Without Limited Liability (Vof)

• Registration with the KVK.

• Formed by two or more partners.

• Each partner is personally liable with private capital.

• If hiring employees: payroll tax declaration.

• VAT and income tax declarations.

• Partnership agreement stating responsibilities and ownership percentages.

2.1.3. Private Limited Company (BV)

• Registered through a Notary.

• Formed by one or more shareholders.

• Each shareholder is liable only up to the company’s capital.

• If hiring employees: payroll tax declaration.

• VAT and corporate income tax declarations.

• Must have a director (DGA) earning €56,000 gross (2025).

• Shareholders’ agreement defining responsibilities and ownership percentages.

3. Tax Obligations for the Self-Employed

3.1. VAT Declaration (Omzetbelasting or BTW)

• Quarterly VAT returns: January, April, July, and October.

• Intra-community report (sales to companies within the EU).

• One Stop Shop – OSS (online sales to individuals > €10,000 within the EU).

PENALTIES:

• Late or missing declaration: €82–€156 fine.

• Late or unpaid VAT: 3% of the unpaid amount (minimum €50, maximum €6,709).

• It is not possible to postpone VAT declaration or payment.

3.1.1. Small Business Scheme – KOR (Kleineondernemingsregeling)

• Annual sales below €20,000 within the Netherlands (previous and current year).

• Exemption from charging VAT.

• Cannot reclaim VAT.

• You may opt out at any time.

3.1.2. VAT Rates in the Netherlands

• 21%: Standard VAT rate.

• 9%: Reduced VAT rate (food, non-alcoholic drinks, hairdressing, etc.).

• 0%: Cross-border supplies (EU), VAT reverse charge (btw verlegd).

• Exempt: Education, healthcare, financial activities.

3.1.3. Invoice Requirements

• Trade name (KVK), address, VAT number (BTW nummer), client or supplier name.

• Invoice date and number.

• For goods: specify the type and quantity delivered.

• For services: specify the type and scope of service provided.

• Amount excluding VAT, including VAT, and VAT percentage (0%, 9%, 21%).

• Company logo.

• Company contact details.

• Bank details and payment deadline (e.g., 7, 15, 20, or 30 days).

Note: If the invoice does not meet requirements:

• VAT or expenses cannot be deducted.

• Your clients cannot deduct VAT.

• Possible fines from the Dutch Tax Authority (Belastingdienst).

• You may need to file corrective returns.

3.2. Income Tax Return (Inkomstenbelasting)

• Once a year between March and April.

• Based on business profits.

Penalties: If you file late, you will receive a fine (€385–€5,514 for repeated cases) and possible suspension of benefits.
Tax-In can request a filing extension for up to one year (if you have received an invitation).

4. Dutch Tax System

4.1. Income Categories (Boxes)

BOX 1
Tax Rates:

• Up to €38,441 – 35.82%

• €38,441 to €76,817 – 37.49%

• Above €78,817 – 49.50%

Applies to:

• Employees

• Self-employed persons

• Pensions

• Alimony

• Residential property

BOX 2
Tax Rate: 31% (from €67,804, year 2025)

Applies to:

• Substantial interest holders (at least 5% of shares in a BV or foreign company).

BOX 3
Tax Rate: 36%
(Tax-free threshold €57,684 per person)

Applies to:

• Savings, bank accounts, and cash (1.44%).

• Other assets, investments, second property (6.04%).

• Debts (2.61%).
  Reference date: 1 January 2025.

4.2. Deductible Expenses

• Business phone and internet.

• Professional literature.

• Work clothing, uniforms, briefcases, etc.

• Public transport, taxi, and air travel (business-related with proof).

• Business use of personal car: €0.23/km (2025), mileage record required.

• Study costs related to business activities.

• Representation, conferences, seminars, study trips:

  • Over €5,700 (2025): 100% deductible.

  • Below €5,700: 80% deductible.

• Business gifts (food or drinks):

  • Over €5,700: 100% deductible.

  • Below €5,700: 80% deductible.

• Business relocation: max €7,750.

  • Up to €1,500 deductible for travel and accommodation costs.

4.3. Non-Deductible Expenses

• Home office space.

• Home phone and internet.

• General literature.

• Equipment not part of company assets.

• Personal care.

• Clothing (not workwear).

• Fines.

• Study costs for acquiring new knowledge (e.g., driving lessons, language courses).

5. Tax Benefits for Entrepreneurs

5.1. Self-Employment Deduction (Zelfstandigenaftrek)

• Must meet the 1,225-hour criterion (urencriterium), including billed and unbilled hours.

• Entitled to the self-employment deduction: €2,470 (2025).

• Retirement-age entrepreneurs: 50% of €2,470.

5.2. Partner Deduction (Meewerkaftrek)

• You are an entrepreneur.

• Your tax partner works over 525 hours with income below €5,000.

• Must meet the hours criterion.

5.3. Start-up Deduction (Startersaftrek)

The start-up deduction (Startersaftrek) is €2,123 if:

• You have not been an entrepreneur in one or more of the past five calendar years.

• You have not applied the self-employment deduction (Zelfstandigenaftrek) more than twice during that period.

• SME profit exemption (Mkb-winstvrijstelling): 12.70%.

6. Insurance Options for Your Business

• Business or corporate liability insurance (AVB).

• Disability insurance (AOV) for self-employed persons.

• Life insurance for partners/shareholders.

• Property, goods, and inventory insurance.

• Cyber insurance.

• Professional liability insurance (BAV).

• Business interruption insurance.

• Legal assistance insurance.

Source: Belastingdienst