Start-up deduction for self-employed workers: what is it? And what about in 2025?

Introduction

Starter deduction is a tax benefit for startup entrepreneurs intended to provide them with financial support. In this blog post, we explain exactly what the starter deduction is, when you are entitled to it and how long the starter deduction applies.

What is startup deduction?

Starter deduction is an increase in the self-employment deduction, a deduction that reduces the taxable income of entrepreneurs. Thus, as a beginning entrepreneur entitled to the self-employment deduction, you may also be entitled to the starter deduction.

When do you receive startup deductions?

To qualify for the start-up deduction, an entrepreneur must meet certain conditions.

• You are entitled to a self-employment deduction. The conditions for self-employment deductions are:
  • You are an entrepreneur for income tax purposes.
  • You meet the hour criterion of 1225 hours per year, spending more time on your business than other work.
• You were not an entrepreneur for the tax authorities every year for the past 5 years.
• You have used the self-employment deduction for up to 2 years in the past 5 years.
• In the calendar year or any of the past 5 years, there was no silent return from a limited liability company.

If you meet these conditions, you will receive the start-up deduction a maximum of 3 times in the first 5 years that you are in business. You do not have to apply for the starter's deduction. The deduction is added to the self-employed deduction on your income tax return. You cannot choose to take the self-employment deduction but not the starter's deduction. If you suffer a tax loss due to the total of deductions, you can offset this loss in other years.

The amounts of the deduction for starters are as follows:
Starter deduction 2025: €2123

Starter deduction 2024: €2123

Starter deduction 2023: €2123

Starter deduction 2022: €2123

Starter deduction 2021: €2123

Entrepreneurs who have reached the state pension age as of Jan. 1 are entitled to 50% of the start-up deduction.

How long do you get startup deductions?

Thus, the start-up deduction can be applied up to 3 times in the first 5 years of entrepreneurship. This provides start-up entrepreneurs with financial support during the start-up phase of their business.

Start-up deduction ZZP

This deduction is often claimed by self-employed entrepreneurs during the first years of entrepreneurship. However, other entrepreneurs may also be entitled to the starter deduction. This is because the self-employment deduction, one of the conditions for the starter's deduction, requires that you be an entrepreneur for income tax purposes. This means that starting entrepreneurs who are, for example, partners or associates may also be entitled to the starter deduction. When filing the income tax return, this becomes automatically clear while filling in the questions.

The start-up deduction offers an attractive tax benefit for start-up entrepreneurs, especially ZZP'ers in practice. It is an important support for those taking the leap of faith to start their own business. You can find more information about the starter's deduction and other deductions for entrepreneurs on the tax authorities' website.

Are you a beginning entrepreneur? Then the small entrepreneur scheme and small-scale investment deduction may be of interest to you. Also see our overview of all deductions for entrepreneurs.