Business expenses in the Netherlands 2026: what you can deduct and what you can’t

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You freelance or run a small company from the Netherlands, often with a laptop and a lot of travel. You want to know which costs lower your Dutch tax bill and which ones the tax office will reject. After reading, you will know the 2026 rules, how they differ between a sole proprietorship and a BV, and how to keep your records audit-proof.

Netherlands business expenses in 2026: the key figures

Is this guide for you?

Read on if you…

• are a freelancer or sole proprietor (eenmanszaak) in the Netherlands;
• run a one-person BV and want to know what the company can pay for;
• work across borders and wonder which country gets the deduction.

Probably not your case if you…

• are a salaried employee (your employer reimburses costs under payroll rules);
• run a large company with group-level tax planning.

What counts as a deductible business expense?

The core rule is simple: a cost is deductible if you incur it for your business. The Belastingdienst (Dutch Tax and Customs Administration) checks whether the link with your business activity is real. It does not judge whether the cost was smart.

Typical deductible costs:

• laptop, phone, monitors and software subscriptions;
• coworking memberships and business premises rent;
• business travel, accommodation and transport abroad;
• professional insurance, accountancy and legal fees;
• marketing, website hosting and domain names;
• training directly related to your current business.

Not deductible, or only partly:

• fines and penalties;
• normal clothing, even if you only wear it for work;
• personal care, glasses and gym memberships;
• the private-use share of any asset.

Assets and depreciation

Assets you use for more than a year are depreciated – spread over their useful life. You can write off at most 20% of the cost per year for most assets. Items under EUR 450 excluding VAT can be deducted at once.

If you invest more than EUR 2,901 in a year, the small-scale investment deduction (KIA) gives an extra 28% deduction on top. Cars for private use do not qualify.

How do sole proprietors deduct costs?

As a sole proprietor, your profit is taxed in Box 1 at 35.75% to 49.50% in 2026. Each euro of business cost saves you tax at your marginal rate.

Mixed costs

Mixed costs (gemengde kosten) have both a business and a private side. Think restaurant meals, drinks, receptions, congresses and study trips. You choose one of two methods each year:

1. Deduct 80% of these costs; or
2. Deduct everything above a fixed threshold of about EUR 5,800.

Honestly? For most freelancers with modest client dinners, the 80% method wins.

Home office

Here's the catch: a room in your own home is only deductible if it is an independent workspace. That means its own entrance and own sanitary facilities. A desk in the spare bedroom does not count, even if you use it every day. You can still deduct office furniture and equipment as assets.

Cars and travel

Using your private car for business? Deduct EUR 0.23 per business kilometre. Keep a trip log. If the car is a business asset, you deduct all costs but add a private-use charge unless you drive fewer than 500 private km a year.

Entrepreneur's deductions

These are not expenses, but they cut your taxable profit further. If you work at least 1,225 hours a year in the business, you get the self-employed deduction (EUR 1,200 in 2026) and the SME profit exemption. Details in personal tax deductions and benefits.

How does it work in a BV?

In a BV (private limited company), costs reduce company profit, which is taxed at 19% up to EUR 200,000 and 25.8% above. A euro of cost therefore saves less tax than in a sole proprietorship at the top rate.

Two BV-specific rules matter:

• Customary salary. As director-shareholder you must take a salary of at least about EUR 58,000, unless you can show a lower amount is normal. That salary is a company expense.
• Work-related costs scheme (WKR). The BV can pay staff costs tax-free up to a "free space" of 2% of the payroll up to EUR 400,000. Specific items, like a laptop needed for work, are exempt outside that space.

Mixed costs in a BV: either 73.5% deductible, or a non-deductible fixed amount based on payroll.

Which structure fits you?

More detail in legal forms of business in the Netherlands. For a tailored comparison, see Heavnn business setup.

Management and control: the remote-founder warning

A Dutch BV is tax resident in the Netherlands because it is incorporated there. But if you manage it from another country, that country may claim it too. The treaty then decides, often case by case through the tax authorities.

Working for months from abroad can also create a permanent establishment (PE) – a taxable presence in that country. Then part of the profit, and the related expenses, belong there.

How do you keep your expenses audit-proof?

1. Keep every invoice in the business name, digitally, for 7 years.
2. Separate accounts for business and private spending.
3. Log trips with date, route, client and kilometres.
4. Document mixed use of phones, laptops and cars.
5. Claim VAT correctly. You can recover input VAT on business costs if you charge VAT. Under the small business scheme (KOR), you cannot.

Common mistakes (and what they cost)

• Deducting a home desk as a home office → the deduction is reversed, plus interest and possibly a 25% fine.
• Deducting 100% of meals → 20% added back, plus correction interest.
• Expensing a EUR 2,000 laptop at once → your profit is adjusted; the KIA may also be missed.
• No trip log → mileage claims rejected in an audit.
• Running a BV from abroad without a plan → the company may become tax resident elsewhere and lose Dutch deductions.

Frequently asked questions

Can I deduct my home office in the Netherlands?

Only if it is an independent workspace, with its own entrance and sanitary facilities, inside a rented home or your own home. A study or spare room does not qualify. You can still deduct office equipment, furniture and the business share of internet and phone costs as normal business expenses.

Are restaurant meals deductible for Dutch freelancers?

Partly. Meals, drinks, receptions and congresses are mixed costs. As a sole proprietor you deduct either 80% of them, or everything above a fixed threshold of about EUR 5,800. In a BV, 73.5% is deductible, or the company applies a fixed non-deductible amount.

How do I deduct a laptop or phone?

If it costs less than EUR 450 excluding VAT, you deduct it in the year you buy it. Above that, you depreciate it, usually over three to five years, at most 20% per year. Deduct only the business share if you also use it privately.

Can I deduct business travel abroad?

Yes, if the trip is mainly for business. Flights, hotels and local transport are deductible. Meals during the trip count as mixed costs. If a trip mixes business and holiday, deduct only the business part. Keep the agenda, invoices and client correspondence as proof.

What is the KIA in the Netherlands?

The small-scale investment deduction (kleinschaligheidsinvesteringsaftrek) is an extra deduction for business investments of at least EUR 2,901 in a year. It gives 28% on top of normal depreciation in the lowest band, then tapers off. Passenger cars and assets for private use are excluded.

How long must I keep business records in the Netherlands?

Seven years for most records, including invoices, bank statements and your accounts. Records about real estate must be kept for ten years. Digital storage is fine if the records stay readable and complete. Missing records shift the burden of proof onto you in an audit.

Related guides

• Legal forms of business in the Netherlands
• Personal tax deductions and benefits in the Netherlands
• Netherlands tax system overview
• Tax fraud regulations in the Netherlands
• Business expenses in Germany
• Business expenses in Austria
• All country tax guides

Sources

• Belastingdienst – Dutch Tax and Customs Administration
• Business.gov.nl – Government information for entrepreneurs
• KVK – Netherlands Chamber of Commerce
• Wetten.overheid.nl – Income Tax Act 2001 and Corporate Income Tax Act 1969
• PwC Worldwide Tax Summaries – Netherlands (secondary check)

This guide is general information, not personalised tax advice. See how we research and review.