Investment deduction 2026: pay less tax when you invest

What is an investment deduction

The investment deduction is an additional deduction for entrepreneurs who invest in business assets. The benefit comes on top of the normal depreciation. If you invest in something that you use for at least one year on a business basis, you may deduct a percentage of the purchase cost from your profit. This way, you immediately reduce your taxable income. The scheme only applies if you are an entrepreneur for income tax purposes and the investment is really for your business.

Three types of investment deduction

There are three types of investment deduction you can make use of as an entrepreneur in 2026. The Small Scale Investment Allowance (KIA) applies to general investments such as machinery or computers. The Environmental Investment Allowance (MIA) is for sustainable investments that are good for the environment. The Energy Investment Allowance (EIA) applies to investments that save energy or generate sustainable energy. Each scheme has its own conditions, but they all help to reduce your tax burden.

Small-scale investment deduction (KIA)

The Small Scale Investment Deduction (KIA) is the most widely used scheme among self-employed people. With the KIA, you may deduct part of your investment from your profit in addition to the regular depreciation. As a result, you pay less income tax. If you invest between €2,901 and €392,230 in 2026, you are eligible for this deduction. The higher your investment within this limit, the greater your benefit.

Tangible assets are tangible items such as machinery, tools or inventory. Intangible business assets are intangible, such as software, licences or patents. Both types count as long as they are used for business purposes and remain in your company for at least one year. The amount of the KIA depends on your total investment amount and can be up to 28% of the purchase cost.

Terms

• You are entrepreneur for income tax purposes.
• Each asset costs a minimum of €450.
• You use the asset for at least one year.
• The total investment is between €2,901 and €392,230.
• Exclusions: passenger cars, residential property and land.

Table small-scale investment deduction 2026

How to take advantage of KIA

You don't need to make a separate application. You enter the KIA in your tax return under the section investment deduction. Keep invoices, receipts and purchase dates well. The tax authorities can always ask for proof.

Environmental investment allowance (MIA)

The MIA is meant for entrepreneurs who invest in environmentally friendly business assets. If your investment is on the government's Environmental List, you can deduct up to 45% of the amount extra from your profit. This applies, for example, to electric company cars, circular machines and sustainable production techniques. The MIA not only provides tax benefits, but also contributes to sustainable business.

Random depreciation of environmental investments (VAMIL)

With the VAMIL, you may deduct 75% of your eco-friendly investment at random. This allows you to immediately deduct a large part of the cost from your profit in the year of purchase. This provides additional liquidity benefit.

Combine with MIA

The MIA and VAMIL can usually be combined. You will then get both the deduction and the opportunity to write off your assets faster. This way, you maximise both benefits.

Terms

• The asset is listed on the Environmental List.
• It is new and not second-hand.
• The investment is a minimum of €2,500.
• You report the investment to RFO within 3 months.
• MIA cannot be combined with EIA, but can be combined with KIA.

How to make use of MIA

Check whether your investment is on the Environment List. Report it to RVO within 3 months via the eLoket. RVO confirms your notification and then you process the amount in your tax return.

Energy investment allowance (EIA)

The EIA is for energy-efficient investments. You can deduct 40% of the costs extra from your profit. It applies, for example, to heat pumps, insulation or solar panels. The EIA is interesting for entrepreneurs who want to reduce their energy costs and benefit from a tax advantage.

Terms

• The asset is listed on the Energy list.
• The investment is new and placed in the Netherlands.
• The investment amount is a minimum of €2,500.
• The notification to RFO is done within 3 months.
• You can combine EIA with KIA, but not with MIA.

How to take advantage of EIA

After purchase, you report the investment to RFO. Once the notification is approved, process the amount in your income tax return. Your tax software will then automatically calculate the benefit.

Combine

You can combine KIA with MIA or EIA, but never use MIA and EIA together for the same asset. MIA and VAMIL can, however, be combined. By planning investments smartly, you can use multiple deductions. Make sure you make all notifications on time, because without notification, the right to deduction lapses.

Divestment allowance

If you sell an investment within five years of receiving investment tax relief, you will have to repay part of it. This is called the disinvestment addition. It applies if the sale value is above €2,900. You then add part of the previous deduction back to your profit. This way, the tax authorities prevent you from making a profit too quickly on previously deductible investments.

Example: You bought a €3,000 laptop in 2022 and got an investment deduction on it. If you sell that laptop in 2026 for €2,500, you have to repay part of that deduction.

Investment deduction for car

There is no investment deduction for ordinary passenger cars. For vans, taxis and electric company cars, the scheme does. Electric or hydrogen company cars are often eligible for MIA, VAMIL and KIA. This allows you to invest in sustainable mobility and benefit from tax advantages.