Further reduction of private business ownership allowance

For whom?

• business owners who are entitled to the private business ownership allowance (zelfstandigenaftrek) 

What changes?

Are you entitled to the private business ownership allowance (zelfstandigenaftrek)? The amount you can deduct from your profit decreases step by step. In 2025, the private business ownership allowance was €2,470 and in 2026 it is €1,200. In 2027, the private business ownership allowance will be further reduced to €900. 

You pay more tax when the private business ownership allowance is lowered. The reduction in the private business ownership allowance will narrow the tax gap between business owners and employees. 

The conditions for the private business ownership allowance remain the same:

• you are classified as a self-employed person for income tax purposes, and
• you work at least 1,225 hours a year on your business

This legislative change was announced earlier. This is the adjustment for 2027. 

When? 

The last step in this change in law will take effect on 1 January 2027.