Self-employed professionals are known as ZZP'ers in the Netherlands. These individuals are often eligible for various subsidies depending on their business types and unique situations.
Taxes may not always be cut and dry. Oftentimes it’s easy to overlook a potential subsidy, break or obligation. When starting a business, reporting or filing your annual submissions, you should be mindful of any nuance possible. For a non-accountant or local tax expert, this can be troublesome.
You don’t need to be an expert accountant or local tax guru in the Netherlands to get the most out of your taxes. With services like Xolo, and a bit of research, you’ll be able to handle ZZP'er taxes like a pro. This guide covers all available subsidies in the Netherlands for ZZP'ers, eligibility requirements, and the possible advantages of each program.
Eligibility for benefits and subsidies as a Dutch ZZP'er
To qualify for most subsidies and tax benefits in the Netherlands, you generally need to:
- Be registered as a sole proprietor (Eenmanszaak) or as a self-employed professional (ZZP'er) with the Dutch Chamber of Commerce (KVK).
- Be considered a self-employed entrepreneur by the Dutch Tax and Customs Administration (Belastingdienst), which often requires meeting specific criteria, such as working a minimum number of hours in your business.
Meeting these basic ZZP'er requirements opens up access to various tax subsidies and benefits, enabling you to make the most of your entrepreneurial journey.
Benefits of using subsidies as a ZZP'er in the Netherlands
Subsidies and tax benefits can provide valuable financial relief, enabling ZZP'ers to:
- Lower their taxable income, reducing the amount owed in taxes.
- Reinvest savings into growing their business.
- Improve cash flow management, especially during periods of business expansion or when facing economic challenges.
Leveraging these benefits can give self-employed professionals a competitive edge and foster long-term business stability.
8 subsidies available to ZZP’ers in the Netherlands
We’ve compiled a list of the main subsidies and tax schemes available to ZZP'ers in the Netherlands, including eligibility requirements and benefits for each program. These programs are unique in their own way, and carry specific eligibility requirements. Be sure to read carefully, and let our team at Xolo know if you need any help simplifying your admin and taxes in the Netherlands.
1. Zelfstandigenaftrek (Self-Employment Deduction)
- Overview: Zelfstandigenaftrek is a tax deduction available to self-employed professionals, created to reduce their taxable income.
- Eligibility: You must work at least 1,225 hours per year in your business to qualify for this deduction.
- Benefits: This deduction may offer lower income taxation for a ZZP'er in the Netherlands.
2. Startersaftrek (Startup Deduction)
- Overview: Startersaftrek is an additional tax deduction for new entrepreneurs, available only during the first five years of business.
- Eligibility: In addition to the requirements for the Zelfstandigenaftrek, you must have been self-employed for fewer than five years and not claimed this benefit more than three times.
- Benefits: This deduction further reduces taxable income, making it easier for new entrepreneurs to invest in their business during the early stages.
3. MKB-Winstvrijstelling (SME Profit Exemption)
- Overview: The SME Profit Exemption is a percentage-based deduction available to small and medium-sized enterprises, including sole proprietors.
- Eligibility: There are no specific requirements, other than being classified as a business by the Belastingdienst.
- Benefits: You can deduct 14% of your profit from your taxable income, creating substantial tax savings.
4. Research and Development Deduction (WBSO)
- Overview: The WBSO is a subsidy designed to encourage innovation by providing tax relief for research and development (R&D) activities.
- Eligibility: You must apply to the RVO (Netherlands Enterprise Agency) for an R&D declaration, demonstrating that your business is involved in eligible R&D activities.
- Benefits: This subsidy reduces labour costs associated with R&D, allowing you to claim a percentage of these expenses as a tax deduction.
5. Investment Deduction Schemes (KIA, EIA, MIA)
The Netherlands offers three main types of investment deductions, each with unique benefits:
Kleinschaligheidsinvesteringsaftrek (KIA):A small-scale investment deduction that applies to investments between €2,400 and €328,721.
- Eligibility: Available to businesses making eligible investments within the specified range.
- Benefits: Deduct a portion of the investment amount, helping to reduce taxable income.
Energie-investeringsaftrek (EIA):
An energy investment allowance for businesses investing in energy-saving equipment or renewable energy.
- Eligibility: Investments must meet certain energy efficiency standards and be approved by the RVO.
- Benefits: Allows businesses to deduct up to 45% of the investment costs from their taxable income.
Milieu-investeringsaftrek (MIA):
A tax deduction for investments in environmentally friendly assets.
- Eligibility: Only applicable to investments in equipment that meets the environmental standards set by the Dutch government.
- Benefits: Deduct up to 36% of investment costs, providing financial incentives at more sustainable practices.
6. COVID-19 Financial Support Packages
While most COVID-19 support packages have expired, some schemes are still available on a case-by-case basis. Check the government website for updates on any remaining support for self-employed professionals impacted by the pandemic.
7. BBZ (Besluit Bijstandsverlening Zelfstandigen)
- Overview: The BBZ provides financial assistance to self-employed individuals struggling to make a living.
- Eligibility: This subsidy is available to entrepreneurs aged 55 and older with a low income, as well as to those in financial difficulty.
- Benefits: The BBZ offers both temporary income support and low-interest loans to eligible self-employed professionals.
8. TOZO (Temporary Bridging Measure for Self-Employed Entrepreneurs)
Although TOZO was a temporary subsidy during the COVID-19 pandemic, it demonstrated the Dutch government’s commitment to supporting self-employed individuals during challenging times. While not currently active, TOZO could be reintroduced in the future during periods of economic crisis.
How to apply for subsidies and sax benefits as a ZZP'er
Applying for these subsidies generally involves registering with the Belastingdienst and, in some cases, submitting additional applications to the RVO or local municipal authorities. Here are some steps to get started:
- Register with the Dutch Tax Authorities: Ensure that your business is recognized by the Belastingdienst and qualifies as a sole proprietorship or ZZP.
- Gather required documents: Many subsidy applications require proof of investment or R&D activities.
- Submit applications on time: Some subsidies, such as the WBSO, require pre-approval. Be mindful of deadlines.
- Seek professional guidance: If you’re unsure about eligibility, working with an accountant or a service like Xolo can help streamline the application process.
Simplify your ZZP’er subsidy applications with Xolo
Navigating the world of subsidies and tax benefits as a self-employed professional in the Netherlands can be complex. With Xolo, you gain access to a comprehensive solution for managing tax filings, tracking expenses and applying for subsidies. Whether you’re looking to lower your tax burden or reinvest savings into your business, Xolo offers the support you need to make the most of any available benefits.
Learn more about Xolo’s services for freelancers and self-employed professionals in the Netherlands.