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Deductions
Investment deduction (KIA): extra deduction for investments
Written by Ilias4 min read
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.
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.
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