Opening a business account: is it required and what does it cost?

Written by Ilias Aarrass6 min read · Published on 14 March 2026 · Last reviewed on 11 September 2026

In short

A business account is mandatory only for a BV; not for a sole trader or partnership, although many banks prohibit business use of a personal account.

A BV has legally separate assets and therefore cannot run through your private account.
Costs typically run between five and twenty-five euros a month and are fully deductible from profit.
There is no VAT on bank charges because financial services are exempt, so there is nothing to reclaim.
To open one, the bank usually asks for valid ID and a recent Chamber of Commerce extract.

Nearly every starter asks this, and the answer surprises most: as a sole trader you are not required to open a business account. You may receive turnover into your private account. It just creates problems you could have avoided for a tenner a month. This article covers when it is required, what it costs and what it gains you.

When is it mandatory?

Only for a legal entity. With a private limited company, the business's assets are legally separate from your own, so the company must have its own account. For a sole trader or partnership that requirement does not apply: there you and your business are the same party, legally and fiscally.

There is another practical obligation people overlook: many banks prohibit business use of a personal account in their terms. Running serious turnover through your private account can lead your bank to close it. It does not happen often, but it happens.

Why you want one anyway

The real reason is practical, not legal. Everything you mix now, you have to separate later, and that costs time or money.

Your records become auditable. One account with only business transactions is booked in an hour; a private account with groceries mixed in is not.
In a tax audit the inspector may demand access to the account your business runs through. If that is your private account, they see everything else on it too.
You link it to your accounting software, after which transactions come in automatically.
Your invoices show an account in your company's name, which reads as more professional to business clients.
You see at a glance what is coming in, which helps with setting money aside for tax.

What does it cost?

Prices range from roughly five to twenty-five euros a month, depending on the provider and transaction volume. Traditional banks are generally at the higher end, online providers lower. On top of that there are sometimes per-transaction or extra-card fees.

Those costs are fully deductible from profit. No VAT is reclaimable, because financial services are exempt; see is there VAT on bank charges.

What it costs you net

Account at € 12 a month: € 144 a year
Fully deductible from profit: at roughly 37% tax burden

Result: roughly € 91 net a year, about € 7.50 a month

What to look for when choosing

The monthly price is rarely decisive. Look mainly at what surrounds it.

Integration with your accounting package. Without an automatic link you retype bank statements every month.
Number of included transactions. With many small payments, a per-transaction fee adds up fast.
Can you receive direct debits? Relevant as soon as you work with subscriptions or fixed monthly fees.
Do you get a genuine IBAN in your company's name, or only in your own?
How quickly does the account open? Same day with some providers, sometimes weeks at traditional banks.

Already started without one?

No problem, and certainly no reason to correct anything retroactively. Open the account, move your clients and subscriptions over and draw a line. The preceding months are simply booked from your private account, with a clear split between business and private items.

Do keep that separation up from now on. How to handle it in practice is covered in keeping private and business separate.

Frequently asked questions

Is a business account mandatory for a sole trader?

No. Only a private limited company must have its own account, because its assets are legally separate. Many banks do prohibit business use of a personal account in their terms.

What does a business account cost?

Roughly five to twenty-five euros a month, depending on provider and transaction volume. Those costs are fully deductible from profit, so the net cost is considerably lower.

Can I reclaim the VAT on bank charges?

No. Financial services are VAT-exempt, so there is no VAT to reclaim. Deducting the full amount from profit is fine.

I started without a business account. Must I fix that?

Not retroactively. Open the account, move your clients and subscriptions across, and book the earlier months from your private account with a clear business-private split.

Sources

Business account: useful, not mandatoryKVK · kvk.nl

Sources checked on 11 September 2026

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.