Legal form
Sole trader or BV
There is no revenue figure at which a business must become a BV. The choice is about liability, how much profit you need privately, and how much administration you take on.
Updated 14 October 20263 min read
What the 2026 rules actually say
A sole trader pays income tax on the profit. The self-employed deduction is €1,200 in 2026, according to the KVK rates overview. A BV pays corporate tax on the profit and payroll tax on the salary of the director and major shareholder.
That salary follows the usual-wage rule. The Dutch tax authority says the wage is at least the highest of three amounts: the wage of the most comparable employment, the wage of the highest-paid employee of the company, or €58,000 in 2026. If you can show that comparable work pays less, the wage can be set at that lower amount.
What the conversation is actually about
- Liability. In a sole tradership or VOF you are personally bound by the debts. A BV limits that, though a bank or supplier often still asks for a personal guarantee.
- Taking money out. In a sole tradership the profit is yours. In a BV you take salary or dividend, with the returns that go with them.
- A holding. An operating BV plus a holding is two sets of books: consolidation, dividend tax and a current account that has to match.
DT Admin is not a statutory auditor and this is not advice for your situation. The figures are the 2026 legal frame and can change next year.
If you want the difference at your own profit, the check on this site calculates it. You enter the profit, the director’s salary and the administration fees. The result is an indication for 2026.
Questions on this topic
Is €100,000 of revenue the moment to incorporate?
No. That number gets repeated, but it is not in the law. Revenue says little without margin, private drawings and risk.
Is the director’s salary included in the BV package?
Payroll is charged separately, between €10 and €15 per payslip. That includes the director’s salary. It is not inside the monthly from-price.
This is a general explanation, not advice for your situation. DT Admin’s fees are indications excluding VAT.