Dutch business expenses explained
7 min read
The test is simple in principle: a cost is deductible if it is incurred in the interest of your business. The complications are in the grey zone — costs that serve both you and your business.
Fully deductible
Typical for a freelancer:
- Software, hosting, subscriptions and professional tools.
- Business insurance, KVK and professional association fees.
- Accountancy, legal and advisory fees.
- Marketing, website and advertising.
- Training that maintains or deepens your existing expertise.
- Travel: public transport at cost, own car at the fixed per-kilometre rate for business trips.
Partly deductible
Food, drink, representation and conference costs fall under a statutory limitation: you either deduct a fixed percentage or apply a fixed annual threshold, whichever you elect. Business lunches, client dinners and festive events sit here. Phone and internet used both privately and for work are split by actual business use; a defensible, consistently applied percentage is what matters.
Not deductible
Fines and penalties, ordinary clothing (only genuine work clothing with a logo of at least 70 cm² or protective gear counts), general reading matter, personal healthcare premiums, and anything private dressed as business. A workspace in a rented or owned home is only deductible under strict conditions — a separate entrance and its own sanitary facilities — so for most freelancers the home office itself is not a deduction, even though the desk, chair and laptop in it are.
Investments and depreciation
Assets costing €450 or more excluding VAT and lasting several years are not deducted at once: you depreciate them, typically over five years with a residual value. Those same investments can qualify for the small-scale investment allowance (KIA) once your yearly investment total passes the threshold, which is an extra deduction on top of depreciation. Record purchases as investments rather than costs so the calculator can see them.
Proof beats intention
No invoice, no deduction. Keep the document, not just the bank line, and make sure it names your business. Scanned copies are fine; the seven-year retention obligation applies to the digital file just as it does to paper.