There is no universal answer, but there are clear tipping points. With a net profit above €50,000 to €60,000 a year, a BV starts to pay off for tax purposes. Below that level, the costs of the company, the accounting, social contributions as a company director and the administration usually outweigh the tax saving.
But tax is not the only factor. A BV offers limited liability: your personal assets are separate from the business risks. The new capital gains tax adds another argument: profits you build up and reinvest within a company are not subject to the 10% levy as long as you do not realise them as a private individual. If you understand that difference, you make more deliberate choices about when to distribute profit and when not to.
Converting a sole proprietorship into a BV can also be done tax-neutrally, without immediate taxation at the moment of contribution.
Considering the step? Our team makes a concrete comparison based on your figures, so you can make a well-founded decision.
