1The comparison in a nutshell
2Net income compared
3Why freelance tax looks lighter
The self-employed deduction and the SME profit exemption lower taxable profit.
Equipment, software, training and travel are deductible; an employee cannot deduct these.
Business deductions give at most 37.56% back, and freelancers pay the healthcare contribution themselves.
4What a payslip includes that an invoice does not
| Employee | Freelancer | |
|---|---|---|
| Sick pay | At least 70% for up to two years | Nothing, unless you buy disability insurance |
| Pension | Employer contributes, often generously | Fully self-funded |
| Unemployment | WW benefit | No safety net |
| Holidays | Paid, plus 8% holiday allowance | Unbilled time |
| Healthcare contribution | Paid by the employer | Paid yourself |
5The markup a freelance rate needs
- Disability insurance
- Often several thousand euros a year, rising with age and insured income.
- Pension
- To match an employer scheme, often 10% to 20% of income.
- Unbillable time
- Admin, sales, illness and holidays commonly take 15% to 25% of your working year.
- Result
- Revenue roughly 20% to 35% above the equivalent gross salary, depending on how much risk you self-insure.
6How to use this for a decision
- 1Compare on the offered rate
Is freelancing better on raw numbers?
- 2Compare again with the markup
Does the rate also cover your insurance, pension and time off?
- 3Check the legal side
Would the work count as genuine self-employment? See employee, ZZP or contractor.
- 4Decide what the freedom is worth
If the rate only clears the raw comparison, you are trading income for flexibility. That can still be right, if you know it.
7Common questions
Can I switch back to employment easily?
Yes, nothing stops you. Note that WW is only built up as an employee.
Is a BV better than freelancing as a sole trader?
Usually only at high profits. See Box 2 and your own BV.
Do I get the 30% ruling as a freelancer?
No, the 30% ruling is only for employees.
What about health insurance?
Sources
This article is based on these official pages. If anything here differs from them, the official page is right.
- Belastingschijven en tarieven (in Dutch)
- Zelfstandigenaftrek (in Dutch)
- Urencriterium (in Dutch)
- Voorlopige aanslag Zorgverzekeringswet (Zvw) (in Dutch)
Ready to run your own numbers?
ZZP vs employee calculator