Knowledge base
BV or sole proprietorship: the tipping point and a comparison
BV or sole proprietorship: the tipping point calculated for 2026
Within the broader question of converting a sole proprietorship (eenmanszaak) into a BV (the Dutch private limited company) — when and how — the tax comparison is the most concrete step. When does a BV pay less than a sole proprietorship? The answer depends on your profit, the private income you want and your personal situation, but there is a clear calculation logic that already takes you a long way.
As a sole proprietorship you pay income tax on your full profit, after deducting the self-employed person's allowance (zelfstandigenaftrek) and the SME profit exemption (MKB-winstvrijstelling). In 2026 the SME profit exemption is 13.31 percent of the profit after entrepreneur allowances. The top rate in box 1 runs up to 49.5 percent. So with a higher profit, you quickly hand over more than half in tax.
A BV pays corporate income tax (vennootschapsbelasting, VPB). In 2026 the low corporate income tax rate of 19 percent applies to the first 200,000 euros of profit, and 25.8 percent above that. You take money out of the BV as DGA salary, on which you pay income tax, or as dividend, on which you pay 24.5 percent box 2 tax (up to 67,000 euros per person per year; 33 percent above that). At higher profits, the combination of corporate income tax and box 2 is structurally more favourable than income tax in box 1.
For most entrepreneurs the tipping point lies somewhere between 80,000 and 120,000 euros of profit per year, but that is a rule of thumb. As soon as you do not need the money privately straight away and can let it build up in the BV, the tipping point shifts downwards. If instead you take almost everything out privately, the tax burden of a BV comes closer to that of a sole proprietorship. A calculation for your own situation is therefore far from a luxury. We make that comparison for you during an introductory meeting, free of charge and without obligation.
What else determines the comparison: more than tax alone
Tax is the main reason to calculate the tipping point, but it is not the only consideration when choosing between a sole proprietorship and a BV. Liability plays at least as big a role. As a sole proprietorship, your private assets are liable for the debts of your business. In a BV those assets are in principle shielded, provided you cannot be held personally at fault as a director. For entrepreneurs with their own home, savings or other private possessions, that difference is not abstract.
A second practical point is the DGA salary requirement. If you hold more than 5 percent of the shares in your BV, you are obliged to pay yourself a customary salary. In 2026 the starting point is a minimum salary of 58,000 euros per year, unless you can demonstrate that a lower salary is in line with the market. That salary is a cost for the BV and lowers the profit on which corporate income tax is calculated, but it raises your personal taxable income in box 1. This interplay makes a proper calculation essential: a DGA salary that is too low leads to additional assessments from the tax authority (Belastingdienst).
A third consideration is the administrative burden. A BV has more obligations than a sole proprietorship: full bookkeeping, annual accounts (jaarrekening) that you file with the Chamber of Commerce (KVK), a corporate income tax return and, if you have staff, full payroll administration. Those obligations are manageable if you outsource them to a firm that does nothing but support BVs. At Nummerix all of these obligations are covered by one fixed monthly fee (excl. VAT), so you never face unexpected invoices.
Finally: choosing a BV is not irreversible, but contributing your sole proprietorship into a BV is a tax and legal step that has to be prepared carefully. If you want to know what that process looks like and what it costs, read more about the step-by-step plan and the costs of the conversion, or about the tax-neutral conversion of your sole proprietorship into a BV. If you already know you want to make the switch, request a no-obligation quote straight away. Within one working day you will know your fixed monthly fee.
FAQ
Frequently asked questions
From what level of profit is a BV more favourable than a sole proprietorship?
As a rule of thumb, in 2026 the tipping point for most entrepreneurs lies between 80,000 and 120,000 euros of profit per year. The exact threshold depends on your DGA salary, whether you leave the profit in the BV or pay it out as dividend, and your personal deductions. A tailored calculation gives a more reliable answer than a general guideline. Request a no-obligation quote or schedule an introductory meeting to have your own situation calculated.
What is the difference in tax between a sole proprietorship and a BV?
As a sole proprietorship you pay income tax in box 1 on your profit, with a top rate of 49.5 percent in 2026. A BV pays corporate income tax (19 percent up to 200,000 euros of profit, 25.8 percent above that). If you then pay out dividend, you pay 24.5 percent box 2 tax (up to 67,000 euros per person per year; 33 percent above that). At higher profits the combined burden in a BV is structurally lower than income tax in box 1, but the outcome differs from one situation to another.
As a DGA, am I obliged to pay myself a salary?
Yes. If you hold more than 5 percent of the shares, you are legally obliged to pay yourself a customary salary. In 2026 the starting point is a minimum salary of 58,000 euros per year. You can apply a lower salary if you can demonstrate that this is in line with the market for your role, but the tax authority reviews that critically. We monitor this for you as part of the payroll administration.
What are the extra costs and obligations of a BV compared with a sole proprietorship?
A BV has more administrative obligations: full bookkeeping, annual accounts that you file with the Chamber of Commerce, a corporate income tax return and, if you pay yourself a salary, payroll administration. If you outsource that to Nummerix, all of those obligations are covered by one fixed monthly fee (excl. VAT). You then have little to worry about yourself.
Can I convert my sole proprietorship into a BV in a tax-efficient way?
Yes, through what is known as the tax-neutral conversion (geruisloze inbreng) you can transfer your sole proprietorship into a BV without paying tax immediately on the hidden reserves. Strict conditions apply and timing matters. We handle the tax and administrative preparation of this process. Setting up the BV itself goes through the notary. Read more about the tax-neutral conversion or request a no-obligation quote to hear what this process will cost you.
How long does it take before I know what the bookkeeping for my BV costs at Nummerix?
You request a quote and receive a proposal within one working day with one fixed monthly fee (excl. VAT). That amount covers the full bookkeeping, all tax returns, the annual accounts and the payroll administration. There are no hidden costs and no after-the-fact charges.
Questions about your own situation?
An intake call is free and without obligation. Prefer to know the price straight away? Request a quote.