How to Choose Between a ZZP and a B.V. for DAFT

In the Netherlands, choosing between a ZZP (Zelfstandige Zonder Personeel / Sole Proprietorship) and a B.V. (Besloten Vennootschap / Dutch LLC) is the most critical financial decision a DAFT applicant will make.

In 2026, the gap between these two has widened due to new tax regulations and the "scaling down" of the 30% ruling. Here is how to decide which path fits your business.

1. The ZZP (Sole Proprietorship)

The ZZP is the "default" for most solo freelancers and digital nomads. It is legally the same as an Eenmanszaak.

• Best for: Entrepreneurs earning less than €70,000 – €80,000 per year.
• The Setup: Extremely simple. You register at the KVK (Chamber of Commerce) for a small fee (~€80) and you're done. No notary is required.

• The Tax Perks: You get the Self-Employed Allowance (Zelfstandigenaftrek—€1,200 in 2026) and the Starters’ Allowance (Startersaftrek—€2,123) for the first three years.

• The Downside: You have unlimited personal liability. If your business is sued or goes into debt, your personal assets (car, savings, house) are at risk.

• No 30% Ruling: You cannot get the 30% tax-free allowance as a ZZP.

2. The B.V. (Limited Liability Company)

The B.V. is a separate legal entity. To the tax office, you are an employee of your own company.

• Best for: High earners (over €80,000 - €100,000) or those who want the 30% Ruling.

• The Setup: Requires a Notary to draft the deed of incorporation. Setup costs are usually between €500 and €1,500.

• The Liability: Your personal assets are protected. If the B.V. goes bankrupt, your personal savings are (generally) safe.

• The "30% Ruling" Advantage: This is the big 2026 hook. If you set up the B.V. before you move, you can keep 30% of your salary tax-free. In 2026, you must earn at least €68,590 to fully benefit from this.

3. The "License Loophole"

For Americans, this is often the deciding factor.

• If you choose a ZZP, you will likely have to retake your driving test in the Netherlands (a €1,000+ process).
• If you choose a B.V. and get the 30% Ruling, you can simply exchange your U.S. license for a Dutch one at the Town Hall for a small fee.

4. The 2026 "1,225 Hour" Rule

To get the tax breaks for a ZZP, you must prove you spent at least 1,225 hours per year on your business (roughly 24 hours a week). This includes "admin" time, marketing, and travel. If you can't prove this, the ZZP becomes much more expensive in taxes. The B.V. does not have this hour requirement.

‍