Running a business from home
In the Netherlands, you can start a business from your home. Before you start, take into account the regulations of your municipality. For example, prevent disturbances for your neighbours. Also check if your mortgage or rental agreement states that you are allowed to run a business from home. Sometimes costs for a home business are tax deductible. And you might need extra insurance.
Check the regulations with your municipality
You can usually start a business from home if you practice a regulated profession. Examples of regulated professions are architect, attorney, general practitioner, artist, and accountant. The regulations for starting a business from home differ per municipality. But in general, the rules are:
Your house must remain a home
In most municipalities, this means that:
- You can use no more than 1/3 of your house for your business
- Your neighbours must not be inconvenienced by your business
- You cannot advertise on the building
- Your business functions as an office
Your plans must fit with the environment plan
- If it does not fit, you can apply for an exemption or amendment to the environment plan. In some cases, you need to apply to your local municipality for a conversion permit (onttrekkingsvergunning).
Check your plans (in Dutch) in the online service counter Omgevingsloket. There you can see which rules apply at your location.
Check if you need permission from your bank or landlord
Do you own the house and have you taken out a mortgage to finance it? Then you need to take into account the provisions of the mortgage contract. If you are renting the property, you should take into account the provisions of the tenancy agreement.
Check the impact on your tax returns
For VAT purposes, your home business can use the same input tax deductions as any other small business. The same conditions apply. For your income tax return, there are several extra regulations to follow:
You can claim the same tax deductions and benefit schemes as any other business. The layout of your workspace will affect your tax return.
Can you divide your home into a business area and a residential area? If so, you can, for example, claim a tax deduction for the costs of the workspace in your home.
Do you have a workspace in your private home? If so, you will usually not be able to claim a tax deduction for the costs.
It is important that you determine whether your workspace is privately owned or a business premises.
- Are you setting up your business in a property that you own? If so, you must state on your first income tax return whether it is a private property or business premises (in Dutch).
- Do you live in a property that forms part of your business assets? Then you must add an amount to the profit for the private use: the rental value (woningforfait).
- Do you rent a property for your company and do you live there? In that case, you must add an amount to the profit as a private withdrawal (the 'living pleasure'). That amount is a percentage of the WOZ value.
See the Belastingdienst article business premises: privately owned or company assets (in Dutch) for more information.
If you are unsure whether your workspace is sufficiently ‘separate’, ask your accountant or tax adviser. You can also submit your situation to the Netherlands Tax Administration.
Do you need to take out extra insurance?
Your household insurance and home insurance are for your private belongings and the building itself. They do not cover damage to business assets and workspaces.
Consider an inventory insurance, goods insurance, and business interruption insurance. Many insurers allow you to combine various casualty insurance policies, insuring you for multiple damages at once.
Personal to-do list: start a company in the Netherlands
There is a lot involved in starting a business. Make your personal to-do list and check which steps to take, and which conditions and regulations apply. Answer the questions about your situation and get a tailored to-do list.