Feeling boxed in by complex tax regimes and endless paperwork? If you’re an entrepreneur or digital nomad considering the Netherlands as your next base, understanding the local sole proprietorship status—known as the eenmanszaak—can be a game-changer for optimizing your tax position and maintaining personal freedom. Let’s break down the facts, strategies, and practical steps for leveraging this business structure in 2025, using only the latest, most reliable data.
What Is the Eenmanszaak? (Dutch Sole Proprietorship Explained)
The eenmanszaak is the Dutch equivalent of a sole proprietorship. It’s a straightforward business structure that allows individuals to operate and invoice clients without forming a separate legal entity. This status is widely used by freelancers, consultants, and small business owners across the Netherlands.
- Availability: Open to Dutch citizens and residents.
- Liability: The owner is personally liable for all business debts and obligations.
- Taxation: Profits are taxed as personal income, not corporate income.
Taxation of the Eenmanszaak in 2025: Key Numbers
In 2025, the Dutch income tax system applies progressive rates to profits from an eenmanszaak:
| Profit Bracket | Tax Rate (2025) | USD Equivalent* |
|---|---|---|
| Up to €75,518 | 36.97% | Up to $81,000 |
| Above €75,518 | 49.5% | Above $81,000 |
*Conversion based on €1 = $1.073 (2025 average rate)
Pro Tip #1: Maximize Tax Deductions
- Zelfstandigenaftrek (Self-Employed Deduction): If you meet the hours criterion, you can reduce your taxable profit by a fixed amount each year.
- Startersaftrek (Starter’s Deduction): New entrepreneurs may claim an additional deduction for the first few years.
These deductions can significantly lower your effective tax rate, especially in your initial years of business.
Pro Tip #2: Understand VAT Registration
- Most eenmanszaak owners must register for VAT (BTW) and charge it on invoices.
- If your annual turnover is below a certain threshold, you may qualify for the Kleineondernemersregeling (KOR), which exempts you from VAT obligations.
This can simplify your administration and reduce compliance headaches.
Personal Liability: A Double-Edged Sword
While the eenmanszaak offers simplicity and flexibility, it comes with full personal liability. This means your personal assets are at risk if your business faces debts or legal claims. For many digital nomads and location-independent entrepreneurs, this is a calculated risk—one that can be mitigated with smart insurance and asset protection strategies.
Checklist: Setting Up an Eenmanszaak in the Netherlands
- Confirm your eligibility as a Dutch resident or citizen.
- Register your business at the Dutch Chamber of Commerce (KVK).
- Apply for a VAT number unless you qualify for the KOR exemption.
- Track your hours and expenses to maximize deductions.
- File your annual income tax return, including all relevant deductions.
Summary: Is the Eenmanszaak Right for You?
The Dutch eenmanszaak is a highly accessible, flexible business structure for solo entrepreneurs in 2025. It offers:
- Simple setup and administration
- Access to valuable tax deductions
- Personal liability for debts (plan accordingly)
- Progressive income tax rates (36.97% up to €75,518 / $81,000; 49.5% above)
For digital nomads and freedom-seekers, it’s a pragmatic option—provided you understand the risks and optimize your tax position.
For more details, consult these official resources: