Eenmanszaak vs BV: Which Structure for Your DAFT Biz?

One of the first decisions you'll face after arriving in the Netherlands on the Dutch-American Friendship Treaty (DAFT) is choosing your business structure. Eenmanszaak or BV? Sole proprietorship or limited company?

We chose eenmanszaak, and if we could go back, we'd make the same choice. But the right answer depends on your situation.

Here's a practical comparison to help you decide.

Quick Overview

Eenmanszaak (sole proprietorship): You and the business are the same legal entity. Simple, free to register, minimal paperwork.

BV (besloten vennootschap): A private limited company. Separate legal entity from you. More complex, more expensive, but offers liability protection.

Most DAFT entrepreneurs start with an eenmanszaak. Out of every DAFT applicant we've talked to, only a handful registered a BV from the start—and most of those had specific reasons (existing investors, high-liability work, or plans to hire immediately).

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Setup Costs

Eenmanszaak:

KVK registration: Free
No notary required
Total setup cost: €0

BV:

KVK registration: Free
Notary fees (deed of incorporation): €500-1,500
Share capital deposit: €0.01 minimum (but banks may require more)
Legal/administrative setup: €1,500-3,000
Total setup cost: €2,000-4,500

That's a significant difference when you're already managing the €4,500 DAFT deposit and relocation costs. For a full breakdown of DAFT costs, see our €4,500 deposit guide.

Ongoing Costs

Eenmanszaak annual costs:

Bookkeeper/accountant: €1,200-2,400/year
Annual tax filing (basic): often included in bookkeeper fee
No mandatory audit
Total: ~€1,200-2,400/year

BV annual costs:

Bookkeeper/accountant: €2,400-5,000/year (more complex)
Annual financial statements: required
Corporate tax filing: separate from personal
Annual report filing at KVK: required
Total: ~€3,000-6,000/year

The BV costs roughly double to maintain because of the additional reporting and filing requirements. Your bookkeeper will charge more for BV administration.

Taxes

This is where it gets interesting.

Eenmanszaak taxes: Your business income is your personal income. You pay income tax (inkomstenbelasting) at progressive rates:

Taxable income	Rate (2026)
Up to ~€38,000	36.97%
€38,000-€76,000	36.97%
Above ~€76,000	49.50%

But you get significant deductions:

Zelfstandigenaftrek (self-employed deduction): ~€3,750
Startersaftrek (starter's deduction, first 3 years): ~€2,123
MKB-winstvrijstelling: 12.7% of profit exempt

These deductions can save you €3,000-5,000 per year, especially in the first three years.

BV taxes: The BV pays corporate tax (vennootschapsbelasting):

Taxable profit	Rate (2026)
Up to €200,000	19%
Above €200,000	25.8%

Then when you pay yourself a salary or dividends, you pay personal income tax on that too. So the money gets taxed twice—once at the corporate level and once personally.

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The Break-Even Point

The general rule of thumb: a BV becomes tax-advantageous when your annual profit consistently exceeds €80,000-100,000.

Below that, the eenmanszaak deductions and simpler tax structure usually result in a lower total tax burden. Above that, the BV's lower corporate rate (19%) plus strategic salary/dividend planning can save you money.

But don't switch just for taxes. The accounting costs of a BV eat into those savings. Talk to a Dutch accountant before making this decision—they can model your specific situation.

What We Wish We Knew: The zelfstandigenaftrek and startersaftrek deductions for eenmanszaak owners are genuinely valuable. In our first year, we saved roughly €4,000 in taxes thanks to these deductions. That alone justified starting as an eenmanszaak.

Liability

Eenmanszaak: Unlimited personal liability. If your business owes money, creditors can come after your personal assets. This sounds scary, but for most service-based DAFT businesses (consulting, design, development), the real liability risk is low. Business insurance covers most scenarios.

BV: Limited liability. The company is a separate legal entity, so your personal assets are protected. If the BV goes bankrupt, creditors can only claim company assets.

However, there are exceptions. Directors can be held personally liable for mismanagement, fraud, or unpaid taxes. The liability shield isn't absolute.

For most freelancers and consultants, professional liability insurance (beroepsaansprakelijkheidsverzekering) at €50-100/month provides adequate protection without the cost of a BV. See our guide on Dutch business insurance.

Administrative Burden

Eenmanszaak:

Quarterly VAT filing
Annual income tax return
Basic bookkeeping (revenue, expenses, invoices)
No annual report required

BV:

Quarterly VAT filing
Corporate tax return
Personal income tax return (separate)
Annual financial statements
Annual report filed at KVK
Payroll administration (even if you're the only employee)
Shareholder meeting minutes (yes, even if you're the only shareholder)

The BV paperwork is noticeably heavier. We've heard from BV owners who spend 2-3 hours per month on administrative tasks their eenmanszaak counterparts don't deal with. For more on what bookkeeping involves, see our bookkeeping requirements guide.

Converting Later

Here's the best part: you can convert an eenmanszaak to a BV later. It's called "inbreng" and costs €1,000-3,000 through a notary.

The reverse (BV to eenmanszaak) is possible but more complex and potentially triggers tax events.

So starting with an eenmanszaak is the lower-risk choice. If your business grows past the €80,000-100,000 profit mark and you need liability protection, convert then.

Our Recommendation

Start with eenmanszaak if:

You're a freelancer, consultant, or service provider
Your expected revenue is under €100,000
You want minimal setup costs and paperwork
You don't need investors or business partners
You're just starting out in the Netherlands

Consider a BV if:

You expect profits above €100,000 from the start
Your business carries significant liability risk
You plan to hire employees soon
You need to bring in investors or partners
You're transferring an existing high-revenue business

Frequently Asked Questions

Q: Does the IND prefer one structure over the other for DAFT? A: No. The IND accepts both eenmanszaak and BV registrations for DAFT. They care about genuine business activity, not the legal structure. Most DAFT applicants use eenmanszaak and have no issues.

Q: Can my spouse and I both be in the same BV? A: Yes, but each DAFT applicant needs their own registered business for their residence permit. Some couples register separate eenmanszaak businesses. Others set up a BV together while each maintaining individual registrations.

Q: How long does converting from eenmanszaak to BV take? A: Typically 4-8 weeks, including notary appointments, bank account setup for the BV, and KVK registration changes. Your accountant can manage most of the process.

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We're not immigration lawyers—just Americans who did this. Requirements change, so verify with official sources.