Home Self-employed allowance 2026: € 1,200 and the conditions
Self-employed allowance 2026: € 1,200 and the conditions
The self-employed allowance is a fixed amount deducted from your profit. It decreases every year. You only qualify if you meet the hours criterion.
How much is it?
In 2026 the allowance is € 1,200, or € 600 if you reached state pension age at the start of the year. The law already sets € 900 for 2027. It goes down every year.
Who qualifies?
- You are an entrepreneur for income tax purposes, for example as a sole trader or in a partnership.
- You meet the hours criterion: at least 1,225 hours a year on your business, and more than half of your working time.
Low profit or a loss?
The allowance cannot exceed your profit, unless you also receive the starter’s allowance. The unused part carries forward for 9 years and can be used in a year in which you meet the hours criterion and profit is high enough. So always claim it in your return, even with a low profit.
Starter’s allowance on top
If you were not an entrepreneur in one or more of the previous five years, you may also get the starter’s allowance of € 2,123, up to three times.
What comes next?
After the entrepreneur’s allowance, the SME profit exemption of 12.7% also comes off your profit. The hours criterion does not apply to it.
Keep track of your hours
The tax authority may ask you to prove you meet the hours criterion. A calendar or time log is your evidence. We check at your return that you use every allowance.
Want to be sure you get every allowance?
Tell us briefly what is going on. Within one working day you hear what we can do for you and what it costs, before we start.
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