Paying less tax as a freelancer: what is and isn't allowed

Entrepreneur's deductions: start with your hours

The self-employed deduction is € 1,200 in 2026. If you are a starter, the starter's deduction of € 2,123 comes on top. Under the 2027 Tax Plan that starter's deduction drops to € 10 next year, so 2026 is probably the last year in which it really yields something. If your partner helps out unpaid, also look at the partner deduction.

For these deductions you must spend 1,225 hours a year on your business. Acquisition, administration and training also count towards that. So keep hour records during the year and not just afterwards: in an audit you must be able to prove your hours.

On top of that you automatically get the SME profit exemption, even if you do not reach the hours. You pay no income tax on 12.70 per cent of your profit after the entrepreneur's deductions. At € 50,000 profit that alone saves over € 2,300. You do need to make sure your income is in your return as business profit.

Business costs: everything you can prove

Most of what freelancers leave on the table is in small items. Software, bank fees, trade literature, courses, the trip to a networking event: small amounts that can add up considerably. So run through the list of forgotten deductions every year, and if in doubt check the overview of which costs are deductible.

Not everything is fully deductible. For business kilometres in your own car or on your own bicycle a rate of € 0.25 per kilometre applies, and you do need trip records for it. A workspace at home is only deductible under strict conditions. Meals with clients and conferences are partly deductible. Costs that are both business and private, such as your phone, can only be deducted for the business part.

Keep proof of every expense. A lost receipt does not have to mean the end of your deduction, but without substantiation the inspector can strike the costs. A separate business account makes this a lot easier.

Investing: the KIA and the right moment

If in 2026 you invest a total of between € 2,901 and € 398,236 in business assets, you get the small-scale investment deduction. Up to € 71,683 that is a 28 per cent extra deduction, on top of normal depreciation. If you are just below the lower limit, it can pay not to postpone a purchase you were already planning until next year. Conversely, spreading can be more favourable if you would exceed the upper limit of the highest percentage in one year.

Cheap items below € 450 are deducted immediately, more expensive ones are capitalised and depreciated. As a starter you can sometimes depreciate faster thanks to arbitrary depreciation, and if you invest in sustainable business assets, also look at the EIA and MIA.

VAT: reclaim what you may reclaim

VAT is not a cost item for your profit, but an amount you charge and pay over. What you can leave on the table is the VAT on your business costs. You deduct that in your VAT return, including the VAT on costs from before your start if you meet the conditions. Do watch the requirements for the purchase invoice: with an incorrect invoice the deduction can be refused.

If your turnover stays below € 20,000 and you mainly have private customers, the small business scheme can be favourable: you then charge no VAT and file no VAT returns. On the other hand, you no longer get VAT back on your costs and investments. With mostly business customers or large purchases coming up, the scheme therefore often works out unfavourably. So do the sums beforehand.

The last weeks of the year

Many choices can only be made before 31 December. Check then whether you reach the 1,225 hours, whether your investments fall in the right year and whether your stock and outstanding invoices are correct. All points are in the year-end checklist.

Also look at your provisional assessment. It does not lower your tax, but an assessment that matches your real profit prevents you from having to pay a large amount plus tax interest afterwards. Once you know what you keep net, you can also better estimate how much to set aside.

Where is the line? Avoidance or evasion

Everything above is simply using schemes the law gives entrepreneurs. Evasion is something else: according to the Dutch government, someone then deliberately files an incorrect or incomplete return. So it is not about how much tax you save, but about whether your return matches what really happened. A structure that is correct on paper but has no business purpose at all can also be challenged by the tax authorities.

What evasion can cost you

If the tax authorities find out, for example in an audit, you first pay the evaded tax after all through an additional assessment, plus tax interest. On top of that comes a culpability penalty: as a starting point 25 per cent of the tax underpaid for gross negligence and 50 per cent for intent. If repeated within five years that can double, up to 100 per cent.

In serious cases the Public Prosecution Service can prosecute you. By law, deliberately filing an incorrect return carries a maximum of six years in prison or a high fine. Those who help can also be pursued: the tax authorities can fine advisers and bookkeepers who cooperate and, in serious cases, publish that penalty.

Already got something wrong? How to fix it

If you find out a return is incorrect, correct it as soon as possible on your own initiative. For VAT you do that with a supplementary return. For income tax you correct your return. If it concerns an error in your books, see how to fix an error in a previous financial year.

If you deliberately concealed income, a strict voluntary disclosure scheme exists. According to the Dutch government, income in box 1, which includes your profit, can be reported penalty-free within two years of the incorrect return. For box 2 and box 3 that is no longer possible. Reporting it yourself usually remains better after that too, because if the tax authorities discover it themselves, the penalty is often higher. You do have to act before the tax authorities already know or are on its trail. Get guidance on this before you submit anything.

Frequently asked questions