Investment deduction (KIA): extra deduction for investments
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Invest between € 2,901 and € 71,683 in business assets in 2026 and you get a 28% small-scale investment deduction; above that a fixed € 20,072 applies, tapering from € 132,747.
- Only assets of at least € 450 excluding VAT count, and the € 2,900 threshold applies to your total investments in the calendar year.
- Above € 398,236 of investments the deduction lapses entirely.
- Ordinary passenger cars, land, homes and rented-out assets are excluded.
- Selling an asset within five years of the investment year means repaying part through the divestment addition.
Investing in business assets, such as a laptop, machine, tools or van? Then via the small-scale investment deduction, KIA for short, you can deduct an extra amount from your profit. That comes on top of normal depreciation. This article explains how the KIA works in 2026 and what to watch for.
What is the KIA?
The KIA is an extra deduction for entrepreneurs who invest in business assets. It's not a discount on your tax, but a deduction on your profit: your taxable profit becomes lower and so you pay less tax. The deduction comes on top of the normal depreciation you may apply anyway.
Which amounts apply in 2026?
In 2026 you qualify for the KIA if you invest in total between 2,901 euros and 398,236 euros in qualifying business assets. Per asset a minimum of 450 euros applies. In the first bracket the deduction is 28% of the investment amount.
A calculation example
Say you invest 10,000 euros in qualifying business assets in 2026. Then your KIA is 28% of that, or 2,800 euros. You deduct that amount from your profit, on top of the depreciation. How much tax you save depends on your tax rate.
What should you watch out for?
A purchase under 450 euros doesn't count, but you can usually deduct it directly as a cost. Not everything qualifies: ordinary passenger cars, land and homes are excluded. If you sell an asset within five years, you have to repay part of the deduction via the disinvestment addition. The KIA is separate from the self-employed deduction, so you may apply both. If you invest in sustainable assets, also look at the EIA and MIA.
The 2026 scale and a worked example
The small-scale investment deduction works with a scale: the percentage depends on your total investment in the calendar year. Only assets of at least 450 euros excluding VAT count.
| Investment in the year | Deduction |
|---|---|
| Up to and including € 2,900 | None |
| € 2,901 to € 71,683 | 28% of the amount |
| € 71,684 up to and including € 132,746 | A fixed € 20,072 |
| € 132,747 to € 398,236 | The fixed amount, tapering by 7.56% of the excess |
| Above € 398,236 | None |
Worked example: planning just over the threshold
- A laptop in December: € 1,800
- below the threshold, no deduction
- A camera planned for January: € 1,400
- separate year: no deduction either
- Bought together in one year: € 3,200
- 28% deduction = € 896 extra
Result: Timing within the calendar year decides whether you clear the threshold. Bundling investments in one year often pays
Frequently asked questions
How much is the investment deduction in 2026?
28 per cent of your total investment between € 2,901 and € 71,683. Above that a fixed € 20,072, tapering from € 132,747 and lapsing above € 398,236.
Which investments count?
Assets of at least € 450 excluding VAT used in your business: equipment, machines, furnishings, a van. Excluded are standard passenger cars, land and goods you rent out, among others.
Must I apply for it separately?
No, you apply it in your income or corporate tax return, in the investment deduction section. If forgotten, you can request an official reduction within five years.
Is the threshold per asset or per year?
The € 2,900 threshold applies to your total investments in the calendar year; the € 450 floor applies per asset. Several smaller purchases can together clear the threshold.
What if I sell the asset again soon?
Selling within five years of the investment year means repaying a proportional part of the benefit through the divestment addition, if proceeds exceed € 2,900.
Does it combine with arbitrary depreciation?
Yes, they are independent. Starters can take the deduction and choose when to depreciate. See arbitrary depreciation for starters.
Sources
- Small-scale investment deduction 2026: the full scaleBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
