Starting a Business While Employed in the Netherlands

Can You Start a Business While Employed?

In the Netherlands there is no legal prohibition on running a business alongside employment. However, two contractual clauses may restrict you:

• Non-compete clause (concurrentiebeding): prevents you from operating in the same sector as your employer.
• Side-activities clause (nevenwerkzaamhedenbeding): requires you to obtain employer approval for outside work. Since August 2022 employers can only refuse if they have an objective justification.

It is best to inform your employer openly about your plans. This prevents legal disputes and builds trust.

Step 1: Choose Your Legal Structure

Most side-business starters opt for a sole proprietorship (eenmanszaak) — the simplest and cheapest structure. Alternatives:

• VOF (general partnership): if you start with a business partner.
• BV (private limited company): attractive when expected profit exceeds roughly €100,000, thanks to lower corporate tax (19% on the first €200,000), but set-up costs are higher.

Step 2: Register at KVK

Register your business at the Chamber of Commerce (KVK). The one-time fee is €85.15. After registration you automatically receive a VAT number from the Belastingdienst. You can prepare the registration online, but finalisation takes place at a KVK office.

Step 3: Sort Out Your Taxes

Income Tax

As a sole proprietor you pay income tax on your profit in addition to your salary. Your total income (salary + profit) is taxed jointly in box 1. This means your profit may immediately fall into the higher bracket (49.50% above €76,817).

Entrepreneur Deductions

You qualify for tax deductions if you meet the hours criterion: at least 1,225 hours per year spent on your business. This is challenging alongside a full-time job (~1,800 hours), but achievable with part-time employment. The 2025 deductions:

• Self-employed deduction (zelfstandigenaftrek): €2,470 (being phased down annually).
• Starter deduction (startersaftrek): additional €2,123 in the first 3 of 5 years.
• SME profit exemption: 12.7% of remaining profit (no hours criterion required).

VAT

You become VAT-liable as soon as you supply goods or services. The standard rate is 21%. If annual turnover stays below €20,000 you may apply the small business scheme (KOR): you charge no VAT and file no VAT returns. The trade-off: you cannot reclaim VAT on business expenses either.

Step 4: Administration and Bank Account

Open a separate business bank account. While not legally required for sole proprietorships, it simplifies your bookkeeping enormously. Keep invoices, receipts and bank statements for at least 7 years.

Step 5: Insurance

As an employee you build entitlements for unemployment (WW), sickness (ZW) and disability (WIA) benefits. As a self-employed person you do not. Consider a disability insurance policy (AOV) — premiums range from €100 to €350 per month depending on coverage and occupation. A mandatory AOV for self-employed workers may be introduced from 2027.

Professional Guidance

At Mojka Finance we guide starters in Rotterdam from KVK registration through to their first tax return. We ensure your administration is in order from day one. Schedule a kick-off meeting.