Do you pay wealth tax on money in your business account?
If you run a sole proprietorship, you may be wondering whether you have to pay tax on the money you have in your business account. Especially when you build up a buffer or save for future investments, this is a question that often comes up. It is perfectly understandable that you want to know whether the Tax and Customs Administration regards this savings pot as private assets and whether you have to pay wealth tax on it.
In this article we explain step by step how the Tax and Customs Administration deals with money in a sole trader's business account. You will read whether business savings count towards wealth tax in box 3, which conditions apply to classify savings as business savings, and what this means in practice for your situation. This gives you a clear insight into the tax rules and allows you to make a more informed choice about whether it is more beneficial to save privately or through the business.
Does money in a business account count for wealth tax in box 3?
In principle, you do not pay wealth tax on the money you hold in your business account. The Dutch Tax and Customs Administration sees the balance in a business account as part of your business assets. This money belongs to your business and is therefore not regarded as private assets. And because income tax is a personal tax, business savings fall outside Box 3. However, there are conditions attached to what is and is not regarded as business savings.
Whether money in your business account falls within Box 3 therefore depends on a number of factors:
For a sole proprietorship, Box 3 only comes into play for your business account if the balance cannot be regarded as business assets.
For a self-employed person with a business account, the same principle applies: only money with a private character counts towards Box 3.
If you hold money in your business account without a clear business purpose, the Tax and Customs Administration can still classify it as private assets and tax it in Box 3.
Whether you have to declare a business account in Box 3 is assessed on the basis of the reference date of 1 January of the tax year.
Conditions for business savings
To ensure that the balance in your business account is actually regarded as business savings, clear conditions apply. The main condition is that the money must have a demonstrable business purpose. Think, for example, of setting money aside to pay the VAT return, building up a buffer to cover risks, or saving for future investments. By substantiating this properly, you show that the savings form part of your business assets.
In addition, the Tax and Customs Administration imposes a number of requirements. For instance, you cannot simply transfer private savings to your business account at the end of the year to obtain a tax advantage. This is also known as 'box hopping' and can lead to double taxation, both in Box 1 and in Box 3. The account name must also clearly reflect the business nature. In other words, the account must really be in the name of your business and not in your name as an individual.
You must also be able to show that the amount in your business account is proportionate to the size and activities of your business. Unreasonably high amounts without a business reason are seen as private assets and may therefore still be taxed in Box 3.
Savings for a sole proprietorship: business account in Box 3 or Box 1?
If you run a sole proprietorship, you have 2 options for saving: in your personal account or in your business account for your sole proprietorship. Where you place the money affects how the Dutch Tax and Customs Administration taxes this wealth. If you choose to save in your personal account, this amount falls under box 3 and is seen as private assets. If you put your savings in your business account, it falls under box 1 and counts as part of your business assets.
So it is important to think carefully about where you place your savings. Both options have their own tax consequences and benefits. By understanding how saving in box 1 and box 3 works, you can determine which choice is best for you. Below, we explain both options step by step, so that you can make an informed decision yourself.
Option 1: private saving (box 3)
If you choose to put your savings in a personal account, this falls under box 3 of income tax. Box 3 is the tax on wealth, in which the Dutch Tax and Customs Administration takes your savings and investments into account. A tax-free capital allowance applies: this is the amount you may save without tax being charged. In 2025, this is € 57,684 per person. If you have a fiscal partner, you may hold € 115,368 together tax-free. Only the amount above this threshold is taxed.
On the portion above the tax-free capital allowance, you do not pay tax on the actual interest, but on a deemed return set by the Dutch Tax and Customs Administration. This means the tax authorities assume an expected return on your assets, regardless of what you actually received. If the actual return is lower than the deemed return, you pay tax on the lower amount.
Private saving in box 3 can therefore be advantageous as long as you remain below the exemption threshold. If you have more savings than the threshold, you must take extra tax pressure into account. For sole traders, this may mean it is more advantageous to save part of the capital in the business, provided it meets the conditions for business savings.
Option 2: business saving (box 1)
Savings you keep in your business account fall under box 1 of income tax. This is because the money is seen as part of your business assets. Unlike box 3, the Dutch Tax and Customs Administration does not use a deemed return here, but the actual return. This means you pay tax on the interest you actually receive on your business savings.
The tax rates in box 1 depend on your total taxable income. In 2025, for example, you pay a rate of 35.82% on the first € 38,441. For incomes between € 38,441 and € 76,817, a rate of 37.48% applies. Everything above that is taxed at 49.5%. For entrepreneurs, it is important to know that deductions, such as the SME profit exemption (12.70% in 2025), reduce taxable income. As a result, you often pay less tax on the interest you receive on your business savings.
An important difference from private saving is that the interest on business savings accounts is often somewhat lower than on personal savings accounts. This is because business money often needs to be available more quickly and banks take this into account. Even so, business saving can be tax-efficient, because the interest is included in box 1 and you have the option to make use of entrepreneurs' relief and other tax advantages.
Whether business saving is more advantageous for you than private saving depends on how much savings you have, the interest you receive and the tax scope you have through deductions. It is therefore wise to calculate in advance what the most favourable choice is for you.
How much money are you allowed to have in a business account as a sole trader?
For a sole proprietorship, there is no statutory maximum amount you may hold in your business bank account. You can therefore decide for yourself how much money you keep in the business. However, it is important that the amount in your business bank account is proportionate to the size and activities of your business. The Tax Authority checks whether there is a business reason for holding larger sums.
When you leave very large sums in your business bank account without a clear business reason, the Tax Authority may see this as excess liquid assets. That part is then regarded as private assets and included in box 3, meaning you will still have to pay wealth tax on it. It is therefore wise to document carefully what you are setting the money aside for. This shows that the money has a business purpose and prevents it from being taxed incorrectly as private assets.
Do not worry if you have built up a buffer of a few thousand euros. The Tax Authority understands that this is necessary for healthy business operations. Only when there are significantly high amounts in your business bank account is it important to be able to substantiate what the business purpose of this money is. Without a clear business purpose, this can have consequences for your tax return.
The importance of a business account for business savings
Having a business account in the name of your business is essential to keep business and private assets properly separated. When your savings are held in an account that is not registered in your company's name, but in your own name, the Dutch Tax Authority sees this as private assets. In that case, the balance in the account counts towards box 3 and you may have to pay wealth tax on it, even if you are in practice using the money for your business.
By using a business account that is genuinely linked to your business, you ensure that the savings are automatically treated as business assets. This prevents you from paying unnecessary tax on assets that in reality form part of the business assets. Moreover, it provides greater clarity, because your private and business cash flows remain clearly separated.
With a smart business account from GoDutch, you also benefit from smart automation and an overview in one platform. This makes it easier to set aside business savings separately while managing your administration and payments efficiently. In this way, you are not only being more tax-efficient, but also saving time and money in your day-to-day business operations.
Business or personal savings: which is the most advantageous?
Whether it is best to put your savings into a personal account or a business account depends on your situation and the amount of savings you have. If you choose to save privately in box 3, you only pay tax when you exceed the exemption threshold. This can be advantageous if your savings balance remains limited.
If, as a sole trader, you place your savings in a business account, this falls within box 1 and you pay tax on the actual interest you receive on those savings. Thanks to deductions such as the SME profit exemption, this can provide a tax advantage, especially for larger amounts or when your savings have a clearly business purpose.
The key is that you must always be able to demonstrate that your business savings are actually needed for your business. This prevents the Tax and Customs Administration from still treating it as private assets.
