The 30% ruling and freelancing: why sole traders don't qualify (and when a BV does)
Updated on 18 August 2026 · 5 min read
For many expats the 30% ruling is what makes the Netherlands financially attractive. But it only applies to employees. What that means if you want to freelance, and when the BV route becomes worth it.
What the ruling is
The 30% ruling lets employers pay up to 30% of the salary of an employee recruited from abroad tax-free, as compensation for extraterritorial costs. Core conditions: you are an employee, you were recruited from abroad, you lived well outside the Dutch border before arriving (more than 150 kilometres as the crow flies) and you earn above a salary norm that is indexed yearly. The ruling runs for at most five years; from 2027 the percentage for new cases drops to 27%.
Why a sole trader misses out
A freelancer with an eenmanszaak has no employer and no salary, so there is nothing to reimburse tax-free. Business profit has its own advantages (the self-employed deduction and SME profit exemption), but the 30% ruling is not among them.
The exception: your own BV
If you set up a Dutch BV (private limited company) and employ yourself, you are an employee, and you can keep or apply for the 30% ruling under conditions. The clock is strict: if you move to the Netherlands and start a BV, the application must be arranged within four months of starting for it to count from day one. If you already hold the ruling with an employer and strike out on your own, you can take it with you, provided the new employment (with your own BV) starts within three months of the old one ending.
When is the BV route worth it?
A BV brings costs: incorporation, payroll administration, annual accounts, and you must pay yourself a customary salary. The rule of thumb from advisory practice: below roughly EUR 60,000 of expected annual profit, the sole proprietorship with its deductions is almost always better; above that, the BV with the 30% ruling can start to win. This is precision work that depends on your situation; have an adviser run the numbers before you choose, because a legal-form choice is hard to repair afterwards.
How Finq helps
Whatever you choose, your records need to be right from day one. Invoicing and time tracking are free in Finq; Finq Plus adds a pre-filled VAT return every quarter.