Making a loss as a freelancer: how to offset it and get money back
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
A business loss is first offset against your other box 1 income of the same year, then carried back three years and forward nine; that order is set by law and not optional.
- After filing your return you can request provisional loss relief and receive 80 per cent of the loss to be offset in advance.
- A loss only exists for tax once it is set out in a loss assessment, so file your return even in a bad year.
- In a BV different periods apply: one year back and unlimited forward, with only half of profit above € 1 million available for offsetting.
- Anything not used within nine years lapses for good, so track how much loss from which year is still outstanding.
Almost every entrepreneur experiences a lean or even negative year: a major client leaves, you invest heavily or you are just starting. Fortunately, the tax authorities look beyond a single calendar year. A business loss does not vanish; you may offset it against profit from other years. This article explains the order in which that happens, how to see money back sooner, and why it works differently in a BV than in a sole trader business.
First within the year, then back and forward
A business loss is first offset against other box 1 income in the same year, for example wages from a job on the side. If you work part-time in employment and your business makes a loss, you often get payroll tax back directly. See also part-time freelancing alongside a job.
Any remaining loss first goes back three years and then forward nine. That order is mandatory: you cannot choose to save a loss for a year in which you expect a higher rate.
| Step | Offset against | Period |
|---|---|---|
| 1 | Other box 1 income in the same year, such as wages | The loss year itself |
| 2 | Positive box 1 income from earlier years (carry-back) | 3 years back |
| 3 | Positive box 1 income from later years (carry-forward) | 9 years forward |
Worked example: a € 20,000 loss
Suppose you make a 20,000 euro loss in 2026. You have a part-time job paying 8,000 euros in wages, and in 2023 you made a 25,000 euro profit.
Worked example: a € 20,000 loss in 2026
- First against your 2026 wages
- € 8,000 offset
- The rest goes back to 2023
- € 12,000 offset
- Refund over 2023, at that year's rate
- around € 4,500
Result: You recover tax paid earlier instead of losing the loss. The exact amount depends on the rate in the year you offset against
Faster refunds: provisional loss relief
Normally the tax authorities settle only after your final assessment, which can take long, while in a loss year you can really use the money. Hence provisional loss relief: after filing your return you can request an advance payout of eighty percent of the loss to be offset. The remainder follows with the final assessment.
Two things help here. File your return as soon as possible, because relief only starts after that. And adjust your current provisional assessment straight away: if you are still paying monthly based on a profit estimate that no longer holds, you are lending money to the tax authorities for nothing.
In a BV it works differently
If you have a BV, the loss falls under corporate tax and different periods apply: one year back and then indefinitely forward. That sounds more generous, but there is a brake. Of profit above one million euros you may offset only half against old losses each year; up to a million it is unrestricted.
For most freelancers and small BVs that ceiling is irrelevant. What does matter: a loss in your BV cannot be offset against your private income. Those are two separate worlds.
What to watch out for
Loss relief only works if your return is correct and the loss has been formally established in a loss assessment. So file on time, even in a bad year. A loss that was never declared does not exist for tax purposes.
- Check that the loss assessment is correct; it states the amount you may offset later.
- Lower income often means more entitlement to allowances. See allowances and your profit.
- If you keep meeting the hours criterion, you retain the self-employed deduction. That enlarges your loss, and therefore your relief.
- Sometimes shifting costs or investments between years beats cramming everything into the loss year. Calculate both variants.
- Track how much loss is still outstanding and which year it came from, so you do not miss the nine-year deadline.
Frequently asked questions
How many years can I offset a loss?
In income tax, three years back and nine years forward. The loss is first offset against other box 1 income in the same year. In a BV it is one year back and indefinitely forward.
Can I choose which year to offset against?
No, the order is set by law: the same year first, then the three preceding years from oldest to newest, then forward. So you cannot save a loss for a year with a higher rate.
What is provisional loss relief?
A request to be paid eighty per cent of the loss to be offset in advance, without waiting for the final assessment. You apply after filing your return; the remainder follows later.
Must I file if I made a loss?
Yes, and especially then. The loss is only established if you declare it. Without a loss assessment you cannot offset anything later, however real the loss was.
Does the self-employed deduction count towards my loss?
Yes, provided you meet the hours criterion. The deduction lowers your profit and can enlarge a small loss, which yields more relief later. In 2026 the self-employed deduction is 1,200 euros.
Sources
- Box 1 loss relief: 3 years back, 9 years forwardBelastingdienst · belastingdienst.nl
- Loss relief in corporate income taxBelastingdienst · 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.
