Why is it worth investing in your own business?
If you want to reduce your year-end taxes, you can invest not only in low-value items (under €450 net), such as tools, machines or phones, but also in higher-value assets. These are not fully expensed in one year, but are depreciated over 5 years.
Depending on the size of your investment, the tax authority provides an additional deductible “bonus”. Here is a clear overview:
Small-scale investment allowance (KIA) 2026
To qualify for the small-scale investment allowance (KIA), your total investment must reach at least €2,901. The allowance can be applied up to €398,236; above this amount, no allowance is granted.
This is how the allowance works:
If your investment is up to €2,900, the allowance is 0%.
If your investment is between €2,901 and €71,683, you can deduct 28% of the total investment amount.
If your investment is between €71,684 and €132,746, the allowance is a fixed €20,072.
If your investment is between €132,747 and €398,236, the allowance starts at €20,072, but is reduced by 7.56% of the amount exceeding €132,746.
In simple terms: the higher your investment in this range, the lower the allowance becomes.
If your investment exceeds €398,236, the allowance is 0%.
Source: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/winst/inkomstenbelasting/veranderingen-inkomstenbelasting-2026/investeringsaftrek-2026/kleinschaligheidsinvesteringsaftrek-2026