How to convert a ZZP into a BV (And what it really costs)

ZZP vs BV: What’s the Core Difference?

ZZP (Eenmanszaak)

• No legal separation between you and the business

• Profits taxed via income tax (box 1)

• Eligible for self-employed deductions (zelfstandigenaftrek, MKB-winstvrijstelling)

• Personally liable for debts

BV (Besloten Vennootschap)

• Separate legal entity

• Profits taxed via corporate income tax (VPB)

• Salary taxed via DGA rules

• Limited liability (in most cases)

Key takeaway

A BV adds complexity and cost but offers tax planning flexibility and risk protection.

When Does It Make Sense to Convert a ZZP into a BV?

While there’s no universal rule, many Dutch tax advisors agree on the following decision indicators:

1. Profit Threshold

• Around €100,000–€120,000 annual profit → BV often becomes fiscally attractive

• Below that → ZZP is usually cheaper due to tax deductions

(Exact break-even depends on salary level, dividend strategy, and personal situation)

2. Liability Risk

If you:

• Sign large contracts

• Work with advance payments

• Hire staff or subcontractors

A BV reduces personal financial risk.

3. Long-Term Growth or Exit

A BV is better suited for:

• Investors or shareholders

• Selling your company

• Building retained earnings