Taxes
Accounting
KIA, MIA, EIA: The Three Investment Deductions Explained Without Jargon
Learn how the KIA, EIA, MIA, and VAMIL work in the Netherlands. Discover which investments qualify, how much tax you can save, and when RVO registration is required.
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15 mins
Intro
Buying a business asset does not just create a cost that you depreciate over several years. In many cases, it also creates an immediate additional tax deduction in the year you make the investment. This is one of the most overlooked tax benefits available to Dutch entrepreneurs. Thousands of founders purchase equipment, machinery, software, vehicles, or energy-efficient installations every year without realizing that they may qualify for substantial additional deductions on top of normal depreciation.
The surprising part is that these schemes are not reserved for large corporations. Sole traders, partnerships, and BVs can all benefit from investment deductions when they meet the conditions. Whether you are starting a company in the Netherlands or already running an established business, understanding how investment deductions work can reduce your tax bill, improve cash flow, and make large investments significantly more affordable.
How Investment Deductions Work: The Mechanic Most Founders Miss
Most entrepreneurs understand depreciation. If you buy a laptop for €2,000, you generally spread that cost over several years. Instead of deducting the full amount immediately, you deduct a portion each year through depreciation.
Investment deductions work differently. They sit on top of depreciation.
Imagine you purchase a qualifying business asset for €10,000. You may still depreciate that asset over its useful life as normal. But in the year of purchase, you may also receive an additional one-time deduction under one of the Dutch investment schemes. This extra deduction directly reduces your taxable profit for that year.
The key point is that these mechanisms operate independently:
Depreciation spreads the investment cost over multiple years.
Investment deductions create an additional one-time deduction in the year of purchase.
The asset continues to be depreciated normally afterwards.
The deduction reduces taxable profit and therefore reduces how much tax you pay.
The Netherlands currently offers three major investment deduction schemes:
KIA (Kleinschaligheidsinvesteringsaftrek)
EIA (Energie-investeringsaftrek)
MIA (Milieu-investeringsaftrek)
Alongside these schemes, VAMIL allows accelerated depreciation on qualifying environmental investments.
The KIA: How the Sliding Scale Works and How to Use It
The KIA is the most widely used investment deduction in the Netherlands. Unlike the EIA and MIA, it does not require registration with RVO. The deduction is calculated automatically based on your total qualifying investments during a calendar year.
The important detail many founders miss is that the KIA looks at total annual investment volume, not individual purchases. This means the timing of investments can materially affect the deduction you receive.
KIA 2026 Sliding Scale
Total annual investment | KIA amount |
Below €2,901 | No KIA |
€2,901 to €69,764 | 28% of total investment |
€69,764 to €116,273 | Fixed amount: €19,534 |
€116,273 to €398,236 | €19,534 minus 7.56% of amount above €116,273 |
Above €398,236 | No KIA |
A few important rules apply:
Each individual asset must cost at least €450.
The threshold is based on total annual qualifying investments.
A €1,500 laptop and a €1,800 camera count together as €3,300.
Investments between €69,764 and €116,273 all generate the same fixed deduction of €19,534.
This creates valuable planning opportunities.
If your BV expects to invest around €150,000, splitting part of that investment into the next calendar year may increase the total KIA received. Likewise, businesses planning major equipment purchases often try to keep annual investment levels within the maximum-benefit band before the deduction starts tapering off.
What Qualifies for KIA and What Does Not
The KIA covers most tangible business assets used in a Dutch business. The scope is broad, but not unlimited.
Qualifying investments typically include machinery, production equipment, laptops, computers, office furniture, tools, qualifying software licenses, and improvements made to business premises.
Assets that generally do not qualify include:
Passenger cars not used for professional transport
Rental assets
Goodwill
Land
Assets used primarily outside the Netherlands
Assets financed through certain subsidies
Non-arm's-length transactions with related parties
Business use matters as well. If an asset is partly private and partly business, only the business-use portion counts.
For example, if a laptop costing €2,000 is used 70% for business purposes, only €1,400 contributes to the KIA calculation.
A particularly important rule applies to BVs operating within a fiscal unity or partnership structure. Total investments may be assessed at group level. An individual BV investing €80,000 may appear eligible for maximum KIA, but if related entities invest another €350,000 during the same year, the group may exceed the upper threshold and lose the deduction entirely.
A Worked Example: What KIA Actually Saves You
Percentages are useful. Actual cash savings are better.
Example 1: Sole Trader
Investment: €30,000 in equipment
KIA deduction:
28% × €30,000 = €8,400
Taxable profit before KIA:
€80,000
Taxable profit after KIA:
€71,600
Estimated tax saving at 37.56%:
€8,400 × 37.56% = approximately €3,155
The entrepreneur saves more than €3,000 in income tax during the investment year.
Example 2: BV
Investment: €50,000 in machinery
KIA deduction:
28% × €50,000 = €14,000
Taxable profit before KIA:
€150,000
Taxable profit after KIA:
€136,000
Estimated tax saving at 19% VPB:
€14,000 × 19% = approximately €2,660
The BV saves approximately €2,660 in corporate income tax in year one.
This benefit comes on top of normal depreciation. The KIA does not reduce the depreciation base. You still depreciate the full asset value over its useful life in future years.
This is one of the many factors entrepreneurs consider when evaluating a BV or sole trader structure.
The EIA: 40% Deduction for Energy-Saving Investments
The Energie-investeringsaftrek (EIA) rewards businesses that invest in energy-efficient technologies.
The deduction equals 40% of the qualifying investment amount.
Qualifying investments must satisfy two conditions:
The investment must appear on the Energielijst published annually by RVO.
The minimum investment per qualifying asset must be €2,500.
Examples of qualifying investments include:
Solar panels
Heat pumps
Energy management systems
LED lighting systems
High-efficiency electric motors
The EIA budget for 2026 is €460 million.
One deadline deserves special attention.
You must register the investment with RVO within three months of making the investment.
Miss that deadline and you lose the deduction entirely.
There is no partial deduction and no retroactive correction. Many entrepreneurs discover this too late and permanently lose a valuable tax benefit.
The maximum qualifying investment amount under the EIA in 2026 is €153 million per reporting entity.
The MIA and VAMIL: Deductions for Environmental Investments
Businesses investing in environmentally friendly assets may qualify for the MIA and VAMIL schemes.
The MIA provides an additional deduction based on the category assigned to the asset on the Milieulijst.
Category | Deduction |
Category 1 | 45% |
Category 2 | 27% |
Category 3 | 13% |
Qualifying investments often include:
Electric company vehicles
Circular economy equipment
Sustainable building technologies
Water management systems
Biodiversity-related investments
The MIA budget for 2026 is €135 million.
VAMIL works differently.
Rather than creating an additional deduction, it allows entrepreneurs to depreciate up to 75% of the investment whenever they choose. This gives businesses greater flexibility to accelerate deductions into years where taxable profits are highest.
The same RVO registration deadline applies here.
Register within three months or lose access to the deduction.
Because the MIA budget operates on a first-come-first-served basis, early registration is particularly important for larger projects.
Combination Rules: What You Can and Cannot Stack
Many entrepreneurs know these schemes exist but are unsure how they interact.
The table below provides a clear overview.
Combination | Permitted? | Notes |
KIA + EIA | Yes | Common combination |
KIA + MIA | Yes | Popular sustainability combination |
EIA + MIA | No | Not on the same investment |
KIA + VAMIL | Yes | Frequently used |
MIA + VAMIL | Yes | Standard combination |
EIA + VAMIL | No | VAMIL is linked to MIA assets |
KIA + EIA + MIA | No | EIA and MIA cannot be combined |
For many sustainable investments, the strongest combination is:
KIA
MIA
VAMIL
A qualifying environmental investment could generate a 28% KIA deduction plus a 45% MIA deduction, creating total deductions equal to 73% of the investment amount before accelerated depreciation is even considered.
For owner-managed BVs, these decisions often form part of broader tax planning discussions around DGA salary vs dividend.
The Desinvesteringsbijtelling: What Happens When You Sell Early
Investment deductions come with a clawback mechanism.
If you sell or dispose of a qualifying asset within five years, part of the original deduction may need to be added back to taxable profit.
This is called the desinvesteringsbijtelling.
The most misunderstood aspect is the calculation.
The clawback is based on the disposal proceeds, not the original purchase price.
Example:
Machine purchased for €10,000
KIA deduction received: 28% = €2,800
Machine sold after three years for €6,000
Clawback:
28% × €6,000 = €1,680
This €1,680 is added back to taxable profit.
If the same machine were sold for only €500, the clawback would be €140.
The clawback generally only applies if total disposal proceeds exceed €2,900 during the year.
Businesses that frequently replace equipment should track assets carefully on their balance sheet Netherlands records to avoid unexpected tax consequences.
How to Claim Investment Deductions in Your Tax Return
The process differs depending on which deduction you are claiming.
KIA
Purchase qualifying assets.
Retain invoices and documentation for seven years.
Enter total qualifying investments in your annual tax return.
The KIA is calculated automatically.
No separate application is required.
EIA and MIA
Register the investment with RVO within three months.
Receive the approval certificate.
Enter the approved amount in your tax return.
Without RVO registration, the deduction cannot be claimed.
If you invest on 1 March, registration must be completed by 1 June.
The same registration covers VAMIL where applicable.
Whether you work with an accountant or bookkeeper, maintaining complete documentation is essential. Investment deductions are claimed through your annual income tax or VPB return, alongside other obligations such as understanding when to file VAT.
Turn Investments Into Tax Savings, Not Administrative Headaches
Most entrepreneurs focus on whether an investment is worth making. Far fewer focus on whether they are claiming every tax benefit attached to that investment. Yet the difference can amount to thousands of euros per year. Missing an RVO deadline, structuring an investment incorrectly, or overlooking a deduction can significantly reduce the return on an otherwise smart business decision.
At Neno, we help entrepreneurs and BVs combine tax efficiency with fully automated compliance. From investment deductions and corporate tax returns to payroll processing and bookkeeping, everything is managed in one place. Whether you want to [incorporate your BV], streamline your [bookkeeping and payroll], or simply understand which deductions apply to your business, our team helps ensure nothing gets left on the table.
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FAQs: Investment Deductions in the Netherlands
What is the KIA and who can claim it?
The KIA is a general investment deduction available to sole traders, partnerships, BVs, and NVs that invest in qualifying business assets.
How much is the KIA deduction in 2026?
The maximum KIA deduction is €19,534 and applies to annual investments between €69,764 and €116,273.
What is the difference between the KIA, EIA, and MIA?
KIA applies to general business investments, EIA applies to energy-efficient investments, and MIA applies to environmentally friendly investments listed on the Milieulijst.
Can I combine the KIA with the EIA or MIA?
Yes. KIA can be combined with either EIA or MIA. EIA and MIA cannot be combined on the same investment.
Do I need to register with RVO for the KIA?
No. KIA is claimed directly in your annual tax return.
What happens if I sell a qualifying asset within five years?
A desinvesteringsbijtelling may apply, causing part of the original deduction to be added back to taxable profit.
Can a BV claim investment deductions?
Yes. BVs can claim KIA, EIA, MIA, and VAMIL when the qualifying conditions are met.
What is the VAMIL and how does it differ from the MIA?
MIA provides an additional deduction. VAMIL accelerates depreciation. They are often used together.
What is the minimum investment amount for each deduction?
KIA generally requires assets costing at least €450 each. EIA requires a minimum qualifying investment of €2,500 per asset.
Can I claim investment deductions for software or intangible assets?
Certain software licenses treated as capital assets may qualify for KIA. Purely intangible assets generally do not qualify.
Written by
Nick Knuppe
CEO & Founder
