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Deductions
Self-employed deduction and the hours criterion: how does it work in 2026?
Written by Ilias3 min read
The self-employed deduction is one of the best-known tax benefits for entrepreneurs. It's an amount you may deduct from your profit before income tax is calculated. But the deduction gets lower every year, and you must meet conditions. This article explains how it works in 2026.
How high is the self-employed deduction in 2026?
In 2026 the self-employed deduction is 1,200 euros. That's significantly lower than in 2025, when it was still 2,470 euros. The government is deliberately phasing out this deduction: in 2027 the amount falls further to 900 euros. So it's becoming increasingly important for entrepreneurs to make good use of other costs and deductions.
What is the hours criterion?
To use the self-employed deduction, you must meet the hours criterion: you must spend at least 1,225 hours per year on your business. That's not only your billable hours, but also time for acquisition, your bookkeeping and building your website. The burden of proof is on you, so keep good time records.
What is the starter's deduction?
If you're a starting entrepreneur, you get the starter's deduction on top of the self-employed deduction. In 2026 that's 2,123 euros. You may use it up to three times within the first five years of your business, provided you meet the hours criterion. So for starters the tax benefit is considerably larger.
And the SME profit exemption?
After the self-employed deduction comes the SME profit exemption automatically. In 2026 that's 12.70% of the profit remaining after the entrepreneur's deduction. You don't have to do anything for this except run a business and make a profit; the hours criterion does not apply to this exemption.
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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