It’s small annually. Over time, it’s significant.
You read the same thing everywhere: once you hit a hundred thousand in profit, you need a BV. That isn't true, and it misses the point.
If you only look at a single tax year, a BV is only more advantageous within a narrow range, amounting to a few thousand euros. At €150,000 in profit, that is just under €5,000.
If you project over ten years, you will have approximately €91,000 more in capital with that same profit. Over twenty years, that figure rises to over €300,000.
That difference doesn't come from a lower tax rate. It comes from time. Profit that remains in your BV is not subject to Box 3 tax, the returns on it are taxed more lightly, and the tax you defer continues to work for you in the meantime.
With the default settings above, the advantage begins at an annual profit of around €91,000. Where that threshold lies for you depends on your profit, your director's salary, your time horizon, and how you eventually settle your taxes.
Box 3 is the silent protagonist
This is the effect that almost no one accounts for, and it is the most significant one.
Private assets cost you 2.16 percent each year in Box 3. This is based on a deemed return of 6 percent, taxed at 36 percent. Whether you actually achieve that return is irrelevant.
Assets in your BV don't incur that cost. Instead, the actual return is taxed at the corporate income tax rate, which is 19 percent on profits up to €200,000.
Project this over ten years with €150,000 in profit and you will see it: as a sole trader, you pay approximately €89,000 in Box 3 tax, compared to about €36,000 via the BV route. That difference accounts for the bulk of the benefit.
The flip side: this changes if you achieve a high actual return. Box 3 assumes a 6 percent return, so if you earn more than that, holding assets privately becomes more favorable. Set the return in the tool to 10 percent and you will see the BV's advantage shrink.
Profit that you leave untouched for years eventually has to be withdrawn.
Box 2 tax rates
Box 2 has two rates. You pay 24.5 percent on the first € 68,843 per year. On everything above that, you pay 31 percent.
Spreading
If you pay out accumulated capital all at once, almost everything falls into that high rate. If you spread it over years within the low bracket, it remains 24.5 percent.
The difference
With € 150,000 in profit over ten years, that is the difference between approximately € 38,000 and € 91,000 in benefit. Same profit, same BV, different planning.
Tax partner
Do you have a tax partner? If so, the low box 2 bracket applies twice, up to € 137,686 per year, and your tax-free allowance in box 3 is doubled. This tool calculates without a partner.
Leaving profit in your BV is a deferral, not a cancellation.
The box 2 claim remains pending. Upon payout, sale of your shares, liquidation, or death. There is no route by which that profit ends up in your private assets without box 2.
This tool therefore fully accounts for that claim, even on the portion you never pay out. The benefit you see comes from time and from box 3, not from tax avoidance. From M&A to international growth, private equity, and emigration. So you don't have to start all over again.
Choosing a legal structure based on a single number is a bad idea. These factors are just as important:
01
Liability
.png)
With a sole proprietorship, your personal assets are at risk. With a BV, they are generally protected.
02
Pension and disability
In a BV, you build up your pension differently than as a sole trader subject to income tax.
03
Financing and investors
A BV is easier to finance, and shares are transferable.
04
Sale and succession
If you ever want to sell or transfer your business, a holding structure is almost always the starting point. The business succession scheme is not included in this calculation.
05
The additional costs of a BV
Bookkeeping, annual accounts, payroll administration, and tax returns. These are not included in the calculation above. You should subtract these costs from the potential savings yourself.
06
The year of conversion itself
A tax-deferred or taxable contribution has its own consequences, and the timing of the transfer determines the cost.
Questions?
We'll answer them.
At what profit level does a BV become more cost-effective?
Why does this tool calculate over a period of years?
Should I distribute my profit or leave it in the BV?
What is the minimum DGA salary for 2026?
What are the additional annual costs of a BV?
Can I convert later?
