Incorporating a BV
One of the most common questions about the BV is: from what profit level is it worth it? The answer is not a fixed number, but there is a clear range. In this article we walk through it step by step.
In 2026, the tipping point for most entrepreneurs is somewhere between €100,000 and €120,000 in annual profit. But that is a rule of thumb. Read on to find out why.
The tipping point is the moment at which the total tax burden in a BV is lower than in a sole proprietorship. Below that point, you pay less tax as a sole proprietor. Above it, the tables turn.
As a sole proprietor, you pay income tax on your profit. But you are also entitled to deductions that reduce your taxable profit.
Self-employed deduction (zelfstandigenaftrek): €2,470 in 2026.
SME profit exemption (MKB-winstvrijstelling): 13.31% of profit after the self-employed deduction.
These deductions are favourable at lower profit levels. They significantly reduce your tax burden. But since they are a fixed amount or percentage, the higher your profit, the less they matter relatively.
At an annual profit of €120,000, you quickly pay around 45 to 49.5% income tax on the upper portion of your income as a sole proprietor.
A BV pays corporate income tax on its profits.
Up to €200,000 profit: 19%
Above €200,000 profit: 25.8%
That sounds much cheaper than income tax as a sole proprietor. And it is, but there is a catch.
As a DGA, you must pay yourself a salary of at least €58,000 gross per year in 2026. You pay regular income tax on that salary, just like an employee.
And if you then want to take more money out to your personal account via dividend, you pay dividend tax on top of that.
Up to €67,804 in dividend: 24.5%
Above €67,804 in dividend: 33%
A BV is therefore not simply cheap. You pay tax in layers.
At a lower profit, say €60,000, the deductions available to a sole proprietor are so valuable that a BV does not make sense. Add to that the fixed costs of a BV of at least €1,500 to €3,000 per year, depending on your accountant. At Sarabel you work with a fixed all-in price per financial year, no surprises.
Only when your profit is high enough does the lower corporate tax rate compensate for those extra costs and the tax on the mandatory DGA salary.
Say you make €150,000 profit per year.
As a sole proprietor you pay roughly €55,000 to €60,000 in income tax after deductions. You keep approximately €90,000 to €95,000 net.
As a BV you pay yourself €58,000 salary. On that salary you pay approximately €18,000 in income tax. The remaining profit of €92,000 is taxed at 19% corporate tax, which is approximately €17,500.
If you also want to take that remaining profit out as dividend, you pay dividend tax on top. But if you leave that money in the BV, you defer that dividend tax for now. That is exactly where the BV gains its advantage: not having to take everything out to your personal account right away.
Note: these are rough calculations. The exact outcome depends on deductions, costs, your family situation and other income sources.
The tipping point can be lower if you want to keep a lot of money in the BV rather than taking it out immediately, if you have a holding structure and make smart use of the participation exemption, or if you work in a sector with high liability risks where protecting your personal assets also plays a role in the decision.
The tipping point can be higher if you take all the money out immediately via dividend, if you have no holding company and add up the corporate tax plus dividend tax, or if you are still making use of the starter’s deduction.
Is your profit structurally above €100,000 and do you leave part of that money in the business? Then a BV is probably worth looking into. Well above €150,000? Then it almost always pays off.
But always run the numbers for your own situation. The rule of thumb gives a direction, not a guarantee.
Have questions about your specific situation? Send an email to info@sarabeladministratie.nl.