Tax Deductions for Freelancers

Key Takeaways

Dutch freelancers can access three major profit deductions: the zelfstandigenaftrek (€2,470), the startersaftrek (€2,123), and the MKB-winstvrijstelling (14%).
Combined, these can reduce your taxable income by €5,000–€15,000+ depending on your profit.
You must meet the urencriterium (1,225 hours/year) to qualify for the zelfstandigenaftrek and startersaftrek.
On top of profit deductions, you can deduct all legitimate business expenses from your revenue.
The zelfstandigenaftrek has been declining over the years and will continue to decrease.

The Three Profit Deductions

These deductions are applied to your profit (winst), not your revenue (omzet). Profit = revenue minus business expenses.

1. Zelfstandigenaftrek (Self-Employed Deduction)

zelfstandigenaftrek

Year	Amount
2023	€5,030
2024	€3,750
2025	€2,470
2026	€2,470
2027 (planned)	Further reduction expected

Requirements:

You must meet the urencriterium: at least 1,225 hours per year spent on your business
More than 50% of your working time must be spent on the business (relevant if you also have an employment contract)
You must be registered as an entrepreneur at the KVK

Good to know

The zelfstandigenaftrek has been reduced dramatically in recent years — from €7,280 in 2020 to €2,470 in 2026. The Dutch government has been gradually phasing it down. Despite the reduction, it remains a significant benefit, especially combined with the other deductions.

Important: The zelfstandigenaftrek can only be deducted against income taxed at the lowest bracket rate (35.75% in 2026). If your income is in a higher bracket, the tax benefit is still calculated at 35.75%, not at the marginal rate. This limits the value of the deduction for high earners.

2. Startersaftrek (Starter Deduction)

An additional deduction for new entrepreneurs:

Requirement	Details
Amount	€2,123 (2026)
Duration	Available in 3 of the first 5 years of your business
Condition	You must meet the urencriterium
Condition	You must not have been an entrepreneur in the 5 years before starting

The startersaftrek stacks on top of the zelfstandigenaftrek. In your first 3 qualifying years, your combined deduction is €2,470 + €2,123 = €4,593.

3. MKB-Winstvrijstelling (SME Profit Exemption)

MKB-winstvrijstelling

Detail	Value
Percentage	14% of profit after other deductions
Maximum	No cap
Requirement	None — available to all entrepreneurs automatically
Hours criterion	Not required

The MKB-winstvrijstelling is applied after the zelfstandigenaftrek and startersaftrek have been deducted. It is the most broadly accessible deduction — every entrepreneur qualifies, regardless of hours worked.

How the Deductions Stack

Example: Freelance IT Consultant, Year 2 of Business

Item	Amount
Revenue (omzet)	€80,000
Business expenses	−€12,000
Profit	€68,000
Zelfstandigenaftrek	−€2,470
Startersaftrek	−€2,123
Profit after deductions	€63,407
MKB-winstvrijstelling (14%)	−€8,877
Taxable income	€54,530

Without any deductions, your taxable income would be €68,000. With all three deductions, it is €54,530 — a reduction of €13,470. At a marginal tax rate of roughly 37%, this saves approximately €4,500–€5,000 in tax.

Example: Part-Time Freelance Designer, Year 1 (Meets Hours Criterion)

Item	Amount
Revenue	€30,000
Business expenses	−€3,000
Profit	€27,000
Zelfstandigenaftrek	−€2,470
Startersaftrek	−€2,123
Profit after deductions	€22,407
MKB-winstvrijstelling (14%)	−€3,137
Taxable income	€19,270

Tax saved: approximately €2,500–€3,000 compared to being taxed on the full €27,000 profit.

The Urencriterium (Hours Criterion)

The urencriterium is the gateway to the most valuable deductions. You need 1,225 hours per year spent on your business.

What Counts

Activity	Counts?
Billable client work	Yes
Administration and bookkeeping	Yes
Marketing and networking	Yes
Preparing proposals and quotes	Yes
Professional development (courses, conferences)	Yes
Travel time for business	Yes
Setting up your website	Yes
Meeting with your accountant about the business	Yes

What Does NOT Count

Activity	Counts?
Commuting to a fixed workplace	No (special rules apply)
Time spent on unrelated activities	No
Sick days (no work done)	No
Vacation days	No

How to Prove It

Keep a weekly time log showing:

Date
Activity description
Hours spent

The format does not matter — a spreadsheet, a notebook, or a time-tracking app are all acceptable. The Belastingdienst may request this log during an audit.

Warning

The 1,225 hours are not prorated for part-year businesses. If you start in July, you still need 1,225 hours between July and December (approximately 47 hours per week). This is unrealistic for most people. If you start late in the year, you may not qualify for the zelfstandigenaftrek and startersaftrek in your first year.

Deductible Business Expenses

On top of the three profit deductions, you can deduct all legitimate business expenses from your revenue. The key rule: an expense must be made for the purpose of your business and be directly related to earning income.

Common Deductible Expenses

Category	Examples	Notes
Office and workspace	Rent, utilities (business portion), furniture, supplies	Home office: deductible based on floor area ratio
Equipment	Laptop, monitor, phone, camera, tools	Items > ~€450: depreciate over useful life
Software	Subscriptions, licenses, cloud tools	Fully deductible in the year paid
Communication	Phone plan (business portion), internet (business portion)	Estimate business-use percentage
Travel	Public transport, car costs (business portion), parking, flights	Keep a mileage log for car expenses
Professional services	Accountant, lawyer, tax advisor, bookkeeper	Fully deductible
Insurance	Professional liability, legal expenses, disability (AOV)	AOV premiums: special rules (see below)
Marketing	Website, advertising, business cards, networking events	Fully deductible
Training	Courses, books, conferences related to your profession	Must be relevant to your business
Client entertainment	Business lunches, dinners, gifts	Limited: 80% deductible (food/drinks), gifts up to €227/person/year

Depreciation (Afschrijving)

Business assets with a value above approximately €450 and a useful life of more than one year should be depreciated rather than expensed in full immediately.

Common depreciation periods:

Asset	Typical Useful Life	Annual Depreciation
Laptop / computer	3 years	33% per year
Office furniture	5 years	20% per year
Car	5 years	20% per year
Smartphone	3 years	33% per year
Professional equipment	3–5 years	20–33% per year

The minimum book value (restwaarde) for tax purposes is typically €1 or a reasonable residual value.

Home Office Deduction (Werkruimte)

If you work from home, you can deduct a portion of your home costs. However, the rules are strict:

Independent workspace (separate room used exclusively for business, with its own entrance or clearly separate):

Deductible portion based on floor area ratio
Includes: rent/mortgage interest, utilities, insurance, maintenance

Non-independent workspace (room in your home, no separate entrance):

Very limited deduction
Typically only the costs directly attributable to business use (e.g., extra electricity, internet)

Good to know

The distinction between independent and non-independent workspace matters significantly. A spare bedroom used as an office is usually a non-independent workspace with limited deductions. A converted garage with a separate entrance may qualify as independent. Consult a tax advisor if your situation is ambiguous.

Car Expenses

If you use a car for business:

Option 1: Actual costs method

Deduct the business-use percentage of all car costs (fuel, insurance, maintenance, depreciation, road tax)
Requires a mileage log proving business vs. private use

Option 2: Kilometervergoeding (mileage allowance)

Deduct €0.23 per kilometer for business travel
Simpler, but often results in a lower deduction than actual costs

AOV (Disability Insurance) Premiums

If you pay for disability insurance (arbeidsongeschiktheidsverzekering), the premiums are deductible. However, the deduction is treated differently from normal business expenses:

AOV premiums are deducted as a personal deduction in Box 1, not as a business expense
The deduction reduces your income after profit deductions
If the AOV pays out, the benefits are taxed as income

Fiscal Old-Age Reserve (Fiscale Oudedagsreserve / FOR)

The FOR allows you to set aside a portion of your profit as a tax-deferred pension reserve:

Detail	2026 Value
Maximum	9.44% of profit (before zelfstandigenaftrek), maximum €10,320
Requirement	Meet the urencriterium
Age limit	You must not have reached the AOW age

The FOR reduces your current year's taxable income but is taxed when you convert it to an actual pension (or when you stop your business). It is essentially a tax deferral, not a tax exemption.

Tip

The FOR is useful for smoothing your tax burden between high-income and low-income years. In a year with €80,000 profit, you can defer up to €10,320 to a future year when your income (and therefore tax rate) may be lower.

Common Mistakes

Not claiming the startersaftrek — Many new freelancers know about the zelfstandigenaftrek but miss the additional €2,123 starter deduction.
Not meeting the urencriterium — Without 1,225 hours, you lose both the zelfstandigenaftrek and startersaftrek. Track your hours from day one.
Forgetting to depreciate assets — Expensing a €2,000 laptop in full is incorrect if its useful life exceeds one year. Depreciate it.
Not deducting business portion of mixed expenses — Phone, internet, home costs — the business portion is deductible. Estimate it reasonably and document your calculation.
Over-claiming the home office deduction — The rules are strict for non-independent workspaces. Do not claim a full room deduction for a desk in your living room.
Not knowing about the FOR — The fiscal old-age reserve can defer significant tax, but many freelancers are unaware it exists.