Starter's deduction ends in 2027: use 2026 while you can

A quick refresher: what is the starter's deduction?

The starter's deduction is an extra deduction on top of the self-employed deduction. In 2026 it amounts to 2,123 euros that you can deduct from your profit, lowering your income tax. You qualify if you are entitled to the self-employed deduction (and therefore meet the 1,225-hour criterion), were not an entrepreneur in one or more of the five preceding years, and did not use the self-employed deduction more than twice in that period. You may use the starter's deduction at most three times in the first five years of your business.

For starters in particular, this benefit is significant. The regular self-employed deduction is only 1,200 euros in 2026; with the starter's deduction on top, you deduct a total of 3,323 euros from your profit. Starters also benefit from an exception: the deduction may exceed your profit, allowing you to offset the unused part later.

What has been announced?

In April 2026, the government announced plans to abolish the starter's deduction as of 1 January 2027, without a transition scheme. In that case, the tax benefit ends after 2026. Note: this plan still needs approval from both houses of parliament as part of the 2027 Tax Plan, so it is not yet final. Meanwhile, the phase-out of the self-employed deduction continues: it drops from 1,200 euros in 2026 to 900 euros in 2027.

What does this mean for you in 2026?

Do you meet the conditions in 2026? Then this may be the last year in which you can use the starter's deduction. Make sure your time records are in order so you can substantiate the 1,225-hour criterion. Indirect hours count too: administration, travel time, preparing quotes, and training.

Unsure whether you meet the conditions this year, or considering starting as a freelancer soon? Then it may pay off to run the numbers on your situation now. Schemes linked to the starter's deduction, such as the arbitrary depreciation for starters, may also be affected by the abolition; exactly how will become clear once the 2027 Tax Plan is final.