Tax incentives & relief for businesses in the Netherlands

There are several tax incentives and forms of tax relief for businesses in the Netherlands. Qualifying for these schemes can help you save money on your taxes by reducing your taxable income. 

Entrepreneur allowance (ondernemersaftrek)

As the owner of a business in the Netherlands, you may be eligible for the entrepreneur allowance (ondernemersaftrek). The allowance takes the form of a deduction that you can use to reduce your overall income, so you pay less tax. 

To qualify for the entrepreneur allowance, you must work for your own company for at least 1.225 hours per year (if you are disabled, this is reduced to 800 hours). You must also spend more than 50% of your working hours working for your own company.

You apply for the entrepreneur allowance by filing your tax return and answering a set of questions. If, based on your replies, you meet the criteria, the Belastingdienst will automatically apply the deductions that you are eligible for. There are several different ones: 

Private business ownership allowance (zelfstandigenaftrek)

The private business ownership allowance, also known as the self-employed deduction (zelfstandigenaftrek), allows you to deduct a fixed amount from your gross annual profit. It is most commonly given to sole proprietors in their first years of operation. In 2025 the maximum value of the deduction is 2.470 euros. 

Tax relief for new companies (startersaftrek)

As a new business in the Netherlands, you may also qualify for the tax relief for new companies (startersaftrek) scheme. Again, this is given as a deduction from your gross annual profit. As of 2025, this deduction is a fixed amount of 2.123 euros per year. You can only receive this tax relief a maximum of three times in your first five years as an entrepreneur. 

R&D tax credit (WBSO)

If your business is involved with research and development work, then you may be able to reduce your business costs by using the R&D tax credit (WBSO). On top of this, if you employ staff, then the WBSO reimburses part of the cost of paying their wages and expenses. 

To qualify for the WBSO, you must spend at least 500 hours on R&D per year and develop a product, production process, or software programme, or perform technical scientific research. You can find more information on the RVO website. Note that you must apply separately for the WBSO. 

Working partner’s abatement

The working partner’s abatement is a form of tax relief provided to partnerships (general partnerships, professional partnerships or limited partnerships) where one partner works 525 or more hours per year and is paid less than 5.000 euros. The abatement lowers the taxable profit of the other partner so that they pay less tax. 

Discontinuation relief

If you are closing your business and making a profit of the sale (known as discontinuation profit), then you may be eligible for discontinuation relief, which enables you to pay less tax on your discontinuation profit. You apply for the relief via your tax return. 

SME profit exemption

The SME profit exemption (MKB-winstvrijstelling) is a tax deduction on your profit that reduces your overall taxable income. The exemption is 13,31% of your profit. You must first reduce your profit with the entrepreneur’s allowance (see above) before making use of the SME profit exemption. 

If you are eligible for the SME profit exemption, the Belastingdienst will automatically deduct it on your tax return. 

Small projects investment credit

If you invest in business assets, you may be able to claim the small projects investment credit (kleinschaligheidsinvesteringsaftrek or KIA) to deduct part of this investment from your profits. The exact amount you are able to deduct depends on the amount you have invested, as follows: 

• 0% of the investment if you invest no more than 2.800 euros
• 28% of the investment if you invest between 2.801 euros and 69.765 euros
• 19.535 euros if you invest between 69.766 euros and 129.194 euros
• 19.535 euros (reduced by 7.56% of the portion of the investment above 129.194 euros) if you invest between 129.195 euros to 387.580 euros
• 0% of the investment if you invest more than 387.580 euros

You can apply for the KIA when completing your income tax return. 

Innovation box

If your company makes a profit from an innovative product or technology, the Netherlands offers you a preferential tax rate that allows you to save money on your tax bill. For this, you will most likely need something like a patent, an exclusive licence, or a pharmaceutical certification to prove that your product or service is “innovative”. 

The profits that are then derived from the innovative asset are taxed at a lower rate of 9%. 

Offsetting losses

If your company makes a loss in any given year, you can offset this against profits made within the last year, or any future profits, on your corporate tax return to reduce your tax liability. This loss compensation is capped at 1 million euros plus 50% of the taxable profit above 1 million euros. 

Deductions for environmental investments

There are also a number of incentives for companies investing in environmentally-friendly assets, including: 

• Energy Investment Allowance (EIA), for business investing in energy-saving techniques or business assets. 
• Environmental Investment Allowance (MIA), for businesses investing in environmentally friendly assets. 
• Random depreciation of environmental investments (Vamil), for businesses investing in environmentally friendly business resources. 

Other tax breaks 

Your business may also be eligible for other general tax breaks in the Netherlands, including: 

• General tax credit (algemene heffingskorting)
• Labour tax credit (arbeidskorting)

You can find out more about these schemes on our tax credits page. 

Start-up and business funding

There are a large number of opportunities for finding start-up and business funding in the Netherlands. This includes: 

• The Innovation Credit Scheme, for companies working on promising innovations
• The Dutch Good Growth Fund (DGGF), for SMEs investing in an upcoming market or developing country
• Financial support for self-employed professionals (Bbz), for freelancers and self-employed people in need of financial support 
• Regional Development Agencies, which help businesses find funding and employees
• Seed Business Angel Funds, for innovative startups seeking funding
• Proof-of-concept funding for start-ups 

You can use the Startup Box quiz to search for startup funding options that are available to you.

The business.gov.nl website provides a portal of subsidies and schemes that you can apply for. Visit their website to find out more.