Taxes
BV Formation
Accounting
Starter's Deduction: How Much Is It and How Do You Claim It?
Learn how the Dutch starter's deduction (startersaftrek) works in 2026, who qualifies, how much you can claim, and why 2026 is expected to be the final year the deduction exists.
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18 mins
Intro
For many Dutch entrepreneurs, the starter's deduction has long been one of the most valuable tax advantages available during the first years of business. Yet 2026 is shaping up to be a unique year. On 20 April 2026, the Dutch cabinet announced its intention to abolish the startersaftrek from 1 January 2027. If approved by parliament, entrepreneurs who qualify in 2026 may be looking at their final opportunity to benefit from this deduction.
This development arrives at a time when self-employed tax benefits have already been reduced significantly. The zelfstandigenaftrek has fallen from €7,280 in 2020 to just €1,200 in 2026, and the planned removal of the startersaftrek would further reduce the tax advantages available to new entrepreneurs. Understanding who qualifies, how the deduction works, and when it must be claimed has therefore never been more important. Entrepreneurs looking at the broader tax picture should also understand how much tax you pay.
2026 Is the Last Year: Why the Timing Has Never Mattered More
Most Dutch entrepreneur guides discuss the starter's deduction as though it is a permanent feature of the tax system. That assumption is no longer safe.
On 20 April 2026, the Dutch cabinet announced a proposal to abolish the startersaftrek from 1 January 2027. The measure forms part of a broader package aimed at reducing the tax difference between employees and self-employed entrepreneurs. While the proposal still requires approval from both the Tweede Kamer and Eerste Kamer, the announcement means entrepreneurs should plan on the assumption that 2026 may be the final year the deduction exists.
Importantly, there is currently no proposed transitional arrangement. Entrepreneurs who still have unused starter deduction years cannot assume they will be able to use them in 2027 or later. If the legislation passes, the opportunity disappears entirely.
For founders who started their business in 2026, the message is straightforward:
If you qualify in 2026, claim the deduction.
You will almost certainly not be able to claim it again in 2027.
The same urgency applies to entrepreneurs who are in the second or third year of their business and have only used the deduction once or twice.
The financial impact is meaningful. The startersaftrek remains €2,123 in 2026, on top of the €1,200 zelfstandigenaftrek. Together they create a combined ondernemersaftrek of €3,323 before the MKB-winstvrijstelling is applied. In the context of declining tax benefits for self-employed entrepreneurs, losing this deduction represents another significant reduction in available tax relief.
What the Starter's Deduction Is and How It Works
The starter's deduction (startersaftrek) is an additional tax deduction that reduces the taxable profit of qualifying entrepreneurs.
It belongs to a broader group of tax benefits known as the ondernemersaftrek and is available only to entrepreneurs whose business profits are taxed through Dutch income tax (IB). It is not available to BV founders, DGA's, or businesses paying corporate income tax.
The deduction amount for 2026 is:
Starter's deduction: €2,123
Unlike many tax incentives, this is a fixed amount rather than a percentage.
Whether your annual profit is:
€15,000
€45,000
€80,000
the deduction remains exactly €2,123.
The startersaftrek is not a standalone deduction. Legally, it is structured as an increase to the zelfstandigenaftrek.
For 2026:
Deduction | Amount |
Zelfstandigenaftrek | €1,200 |
Startersaftrek | €2,123 |
Combined ondernemersaftrek | €3,323 |
A founder cannot claim the startersaftrek unless they also qualify for the zelfstandigenaftrek.
One of the most misunderstood rules concerns how often the deduction may be used.
The startersaftrek can be claimed:
Maximum 3 times
Within the first 5 calendar years
The years do not need to be consecutive
For example:
Year | Meets conditions? | Claim available? |
Year 1 | No | No |
Year 2 | No | No |
Year 3 | Yes | Claim 1 |
Year 4 | Yes | Claim 2 |
Year 5 | Yes | Claim 3 |
The founder still receives all three applications because they met the conditions during years three, four, and five.
Entrepreneurs who are still starting a company in the Netherlands should understand these rules early, because eligibility depends heavily on how the business is structured and operated.
The Four Conditions: Do You Qualify?
Many entrepreneurs assume that registering at the KvK automatically qualifies them for the starter's deduction.
That is not the case.
The Belastingdienst applies four separate tests, and all four conditions must be met simultaneously. Failing just one condition means the entire deduction is unavailable for that year.
Condition | What it means | Common trap |
1. Entitled to zelfstandigenaftrek | You must qualify as an IB entrepreneur, be recognised by the Belastingdienst as an entrepreneur, and satisfy the urencriterium | Getting your KvK number alone is not enough |
2. Urencriterium: 1,225 hours | You must spend at least 1,225 hours on qualifying business activities during the calendar year | Mid-year starters still need the full 1,225 hours |
3. Starter condition: 5-year look-back | In at least one of the previous five calendar years you were not an IB entrepreneur | Some former entrepreneurs incorrectly assume they qualify again immediately |
4. Maximum two prior claims | You may not have claimed the startersaftrek more than twice during the previous five years | The limit is based on actual claims, not qualifying years |
The first condition causes confusion because many founders equate entrepreneurship with registration.
The Belastingdienst uses its own criteria to determine whether someone genuinely operates as an entrepreneur. Factors include:
Number of clients
Commercial risk
Independence
Continuity of activities
Profit motive
The second condition, the famous 1,225-hour rule, is often where founders lose eligibility. The hours requirement applies regardless of whether the business was started on 1 January or 1 June.
The third condition includes an important exclusion that many entrepreneur guides fail to mention.
Entrepreneurs who have returned from a BV structure to an IB business via geruisloze terugkeer under Article 14c Wet IB 2001 during 2026 or any of the previous five years are excluded from the startersaftrek, even if they satisfy all other requirements.
The Mandatory Claim Rule Most Founders Miss
There is one rule that surprises many entrepreneurs.
If you satisfy all four conditions in a particular year, you must claim the startersaftrek.
You cannot decide to skip it because profits are low and save the deduction for a future year when profits might be higher.
Many founders assume they can strategically preserve one of their three applications. The Belastingdienst does not allow this. If you qualify, the deduction is automatically applied and counts as one of your available claims.
This rule becomes especially important in 2026. Entrepreneurs who qualify this year should not assume they can "save" their remaining applications for 2027 because the deduction may no longer exist by then.
Starter's Deduction: How Much Is It and How Do You Claim It
The Calculation: How Much Do You Actually Save?
Many entrepreneur guides explain the starter's deduction as though you simply subtract €2,123 from your taxable income and multiply the result by your tax rate.
That is not how the calculation actually works.
The Dutch tax system applies the deductions in a specific order, and understanding that order is important because the MKB profit exemption (MKB-winstvrijstelling) is calculated after the ondernemersaftrek has already reduced the profit.
The correct sequence is:
Step 1
Start with your business profit before deductions.
Step 2
Subtract the zelfstandigenaftrek (€1,200 in 2026).
Step 3
Subtract the startersaftrek (€2,123).
Step 4
Apply the MKB-winstvrijstelling of 12.7% to the remaining profit.
Step 5
The remaining amount becomes the taxable business income that enters the Box 1 income tax calculation.
Many competitor websites incorrectly present these deductions as though they simply stack together. In reality, the MKB-winstvrijstelling is calculated on whatever profit remains after the ondernemersaftrek has already reduced the profit.
Worked Example
A ZZP consultant earns:
Business profit: €45,000
Qualifies for zelfstandigenaftrek
Qualifies for startersaftrek
Eligible for MKB-winstvrijstelling
With Starter's Deduction
Calculation | Amount |
Business profit | €45,000 |
Minus zelfstandigenaftrek | €43,800 |
Minus startersaftrek | €41,677 |
Minus MKB-winstvrijstelling (12.7%) | €36,384 taxable |
Approximate tax at an effective rate around 37%:
€13,462
Without Starter's Deduction
Calculation | Amount |
Business profit | €45,000 |
Minus zelfstandigenaftrek | €43,800 |
Minus MKB-winstvrijstelling (12.7%) | €38,237 taxable |
Approximate tax:
€14,148
Actual Tax Saving
Item | Amount |
Tax without startersaftrek | €14,148 |
Tax with startersaftrek | €13,462 |
Total saving | €686 |
This is one of the most misunderstood aspects of the deduction.
The effective tax benefit is not:
€2,123 × tax rate
because the MKB-winstvrijstelling reduces part of the deduction's impact.
The real calculation is:
€2,123 × (1 − 12.7%) = €1,853
The deduction effectively reduces taxable income by approximately €1,853, not the full €2,123.
At a marginal tax rate of:
37.48% → approximately €694 tax saving
35.82% → approximately €664 tax saving
The exact outcome depends on your personal income situation, but for many entrepreneurs the deduction is worth around €650 to €700 per year in actual tax savings.
The Urencriterium: What Hours Count and the Mid-Year Start Problem
The 1,225-hour rule is the most common reason entrepreneurs lose access to both the zelfstandigenaftrek and the startersaftrek.
Many founders underestimate how strict this requirement is.
The Belastingdienst requires you to spend at least 1,225 hours during the calendar year on qualifying business activities.
Fortunately, those hours include much more than billable client work.
Hours That Count
The following activities generally count toward the urencriterium:
Client work
Billable project hours
Administration
Bookkeeping
Marketing
Acquisition and sales activities
Business networking
Travel to and from clients
Preparing proposals
Relevant business training and education
Product development
Many founders are surprised to discover that administrative and marketing activities count equally toward the threshold.
Hours That Do Not Count
The following activities generally do not qualify:
Employment hours (loondienst)
Household tasks
Personal activities
Personal study unrelated to the business
Domestic administration
If you work three days per week as an employee and two days in your own business, only the business hours count.
The Mid-Year Start Problem
This is one of the most overlooked traps in the Dutch tax system.
The 1,225-hour threshold applies to the entire calendar year regardless of when the business started.
Example:
Business registered: 1 June 2026
Remaining months in year: 7
Required hours: 1,225
That means the founder must average approximately:
44 hours per week
on business activities from June through December.
For a full-time founder this may be achievable.
For someone combining entrepreneurship with employment, studies, or family responsibilities, it becomes significantly harder.
Many entrepreneurs assume the threshold is reduced proportionally when starting mid-year.
It is not.
There is no pro-rata reduction.
Founders who start later in the year should therefore immediately assess whether reaching 1,225 hours is realistic. If not, they may lose access to both deductions in year one but can still qualify in later years within the five-year eligibility window.
Maintaining a detailed hour registration is crucial. Entrepreneurs working with an accountant or bookkeeper often find it much easier to document and defend their hours during a tax audit.
The Disability Variant: Startersaftrek bij Arbeidsongeschiktheid
Most entrepreneurs are unaware that a completely separate version of the starter's deduction exists for entrepreneurs who start a business while receiving a disability benefit.
This scheme is called:
Startersaftrek bij arbeidsongeschiktheid
It is substantially more generous than the regular starter's deduction and operates under different rules.
Regular vs Disability Variant
Aspect | Regular Starter's Deduction | Disability Variant |
Amount | €2,123 fixed | Year 1: €12,000 |
Year 2: €8,000 | ||
Year 3: €4,000 | ||
Hours requirement | 1,225 hours | 800 hours |
Relationship to zelfstandigenaftrek | Added on top | Replaces it |
Maximum use | 3 times in 5 years | 3 times in 5 years |
Available from 2027 | Proposed abolition | Status under review |
Intended for | New IB entrepreneurs | Entrepreneurs with disability benefit |
The most important distinction is that this variant does not sit on top of the regular zelfstandigenaftrek.
It replaces it.
Many disabled entrepreneurs mistakenly assume they receive both benefits simultaneously.
They do not.
Why Are the Amounts So Much Higher?
The Dutch tax system recognises that building a business while managing a disability creates additional challenges.
The deduction therefore starts at:
€12,000 in Year 1
before gradually reducing:
Year | Deduction |
Year 1 | €12,000 |
Year 2 | €8,000 |
Year 3 | €4,000 |
The idea is that the entrepreneur becomes less financially dependent on the support as the business matures.
Pregnancy and the Hours Criterion
A special rule also exists for pregnant ZZP founders.
Entrepreneurs on maternity leave may count the leave period as though the hours were worked for the purpose of the urencriterium.
This allows founders to continue qualifying for the zelfstandigenaftrek and startersaftrek even if business activities temporarily stop during maternity leave.
For many self-employed founders, this rule can make the difference between qualifying and missing the deduction entirely.
How to Claim the Starter's Deduction: Step-by-Step
One of the advantages of the starter's deduction is that entrepreneurs do not need to submit a separate application to the Belastingdienst.
The deduction is claimed automatically through the annual income tax return.
The process works as follows:
Step 1: Complete Your Business Profit Calculation
Before claiming any deductions, calculate:
Revenue
Business expenses
Depreciation
Other deductible costs
This produces your taxable business profit.
Step 2: Complete the Entrepreneur Section
Within the Dutch income tax return, entrepreneurs are asked several questions regarding:
Business activities
Hours worked
Years of entrepreneurship
Previous use of entrepreneur deductions
The answers determine whether the Belastingdienst considers you eligible.
Step 3: Confirm the Urencriterium
You must confirm that you worked at least:
1,225 qualifying hours
during the calendar year.
If the Belastingdienst requests evidence later, you must be able to provide it.
Step 4: Automatic Application
When all conditions are met:
Zelfstandigenaftrek is applied automatically.
Startersaftrek is applied automatically.
No separate request is required.
Step 5: Review the Calculation
Always verify that:
The deduction was applied.
The MKB-winstvrijstelling was calculated correctly.
The final taxable profit matches your expectations.
Entrepreneurs working with an accountant often have this reviewed before filing.
The Full Deduction Stack: How the Starter's Deduction Fits Into Dutch Tax Planning
Many founders focus solely on the starter's deduction.
In reality, it is only one component of a much larger tax framework.
The most common deduction stack for a sole trader looks like this:
Business Profit
↓
Zelfstandigenaftrek
€1,200 (2026)
↓
Startersaftrek
€2,123
↓
KIA (Small-Scale Investment Deduction)
If applicable.
↓
MKB-Winstvrijstelling
12.7%
↓
Taxable Profit
↓
Box 1 Income Tax
This sequence matters.
Each deduction affects the calculation that follows.
Entrepreneurs who invest in equipment, computers, machinery, or business assets may also qualify for the Kleinschaligheidsinvesteringsaftrek (KIA), which can further reduce taxable profit.
What Happens If Your Business Makes a Loss?
A surprisingly common question concerns loss-making startups.
Many founders assume they cannot benefit from the starter's deduction if profits are low or negative.
That is not correct.
The deduction can still be applied.
Example:
Item | Amount |
Business profit | €1,000 |
Zelfstandigenaftrek | -€1,200 |
Startersaftrek | -€2,123 |
Result | -€2,323 loss |
The resulting tax loss may then be used according to Dutch loss offset rules.
This means the deduction can still provide value even when a startup has not yet become profitable.
For early-stage founders this can be particularly important because many businesses spend their first years investing in growth.
Why BV Founders Cannot Use the Starter's Deduction
One of the biggest misconceptions in Dutch entrepreneurship is that every founder qualifies for the starter's deduction.
This is not true.
The starter's deduction only applies to entrepreneurs who pay income tax on business profits.
Examples:
Eligible
Sole proprietorship (eenmanszaak)
ZZP entrepreneur
VOF partner
Not Eligible
BV founders
DGA's
NV shareholders
The reason is simple.
A BV pays:
Corporate income tax (VPB)
Salary tax through payroll
A sole trader pays:
Income tax (IB)
The starter's deduction belongs to the income tax system.
Therefore, once a business operates through a BV, the deduction disappears.
Entrepreneurs evaluating a future incorporation should understand the trade-off.
A BV provides:
Limited liability
Different tax planning opportunities
Dividend flexibility
But it also removes access to:
Zelfstandigenaftrek
Startersaftrek
Several other entrepreneur deductions
This is one reason why many founders remain sole traders during the early stages of growth.
Is It Still Worth Claiming in 2026?
Absolutely.
Even though the deduction is relatively modest compared to historical levels, it still produces meaningful savings.
Approximate benefit:
Tax Rate | Saving |
35.82% | €664 |
37.48% | €694 |
Higher effective rates | €700+ |
For most entrepreneurs, spending a few minutes ensuring the deduction is correctly claimed is one of the highest-return tax actions available.
More importantly, 2026 may be the final opportunity.
If the proposed legislation passes, the starter's deduction disappears from 1 January 2027.
Don't Leave Tax Benefits on the Table
Claim Every Deduction You're Entitled To
The Dutch tax system offers relatively few remaining benefits specifically aimed at new entrepreneurs.
The starter's deduction remains one of the most valuable.
At Neno, we help founders understand not only which deductions they qualify for, but also how bookkeeping, tax, payroll and business structures work together as a company grows.
Whether you're starting a business, considering a BV structure, or simply want confidence that your tax return is correct, our team can help.
Book a demo and discover how proactive financial services can help you keep more of what you earn.
FAQs: Starter's Deduction in 2026
What is the starter's deduction?
A tax deduction of €2,123 available to qualifying IB entrepreneurs in 2026.
How many times can I use the starter's deduction?
A maximum of three times within your first five calendar years as an entrepreneur.
Do the three years need to be consecutive?
No. They only need to fall within the five-year eligibility window.
Do I need to apply separately?
No. The deduction is claimed automatically through your annual income tax return.
Can I save the deduction for a future year?
No. If you qualify, the deduction is automatically used.
What is the urencriterium?
The requirement to spend at least 1,225 qualifying hours on your business during the calendar year.
Does a mid-year startup get a reduced hours requirement?
No. The full 1,225-hour threshold still applies.
Can a BV founder use the starter's deduction?
No. The deduction is only available to entrepreneurs taxed through income tax.
What is the startersaftrek bij arbeidsongeschiktheid?
A separate and more generous version of the deduction for entrepreneurs receiving a disability benefit.
Is 2026 really the final year?
The Dutch cabinet has proposed abolishing the deduction from 1 January 2027. At the time of writing, the proposal still requires parliamentary approval, but entrepreneurs should assume 2026 may be their final opportunity to benefit from the scheme.
Written by
Nick Knuppe
CEO & Founder
