Do you pay wealth tax on money in your business account?
Thomas Vles
3 Sept 2025
6 minute read
If you have a sole proprietorship, you may wonder whether you need to pay tax on the money you have in your business account. Especially when you are building a buffer or saving for future investments, this is a question that often arises. It is quite logical that you want to know if the Tax Authorities consider this savings as personal assets and whether you need to pay wealth tax on it.
In this article, we will explain step by step how the Tax Authorities handle money in a business account of a sole proprietorship. You will learn whether business savings count for wealth tax in box 3, what conditions apply to categorise savings as business-related, and what this specifically means for your situation. This way, you will gain clear insight into the tax rules and can make a more informed choice about whether it is more beneficial to save personally or within your 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 have in your business account. The Tax Authority regards the balance in a business account as part of your business assets. This money belongs to your company and is therefore not considered personal assets. And because income tax is a personal tax, business savings fall outside box 3. However, there are conditions attached to what is and isn't classified as business savings.
Conditions for business savings
To ensure that the balance in your business account is actually classified as business savings, there are clear conditions. The most important condition is that the money must have a demonstrable business purpose. Think, for example, of reserving money for paying the VAT declaration, building up a buffer to cover risks or saving for future investments. By substantiating this well, you demonstrate that the savings are part of your business assets.
In addition, the Tax Authority has a number of other requirements. For instance, you cannot simply transfer personal savings to your business account at the end of the year to gain a tax advantage. This is known as 'box hopping' and can lead to double taxation, both in box 1 and in box 3. Also, the name on your account must clearly indicate its business nature. In other words: the account must genuinely be in the name of your business and not in your personal name.
Furthermore, you must be able to demonstrate that the amount in your business account is proportionate to the size and activities of your company. Unreasonably high amounts without a business reason are considered personal assets and can therefore still be taxed in box 3.
Business account for sole proprietorship: savings in box 1 or box 3?
If you have a sole proprietorship, you have 2 options for saving: in your personal account or in your business account. Where you put the money affects how the tax authorities tax this wealth. If you choose to save in your personal account, that amount falls under box 3 and is considered personal wealth. If you place your savings in your business account, it falls under box 1 and counts as part of your business assets.
It is therefore important to think carefully about where you place your savings. Both options have their own tax implications and advantages. By understanding how saving works in box 1 and box 3, you can determine which choice is most favourable for you. Below we explain both options step by step, so that you can make a well-considered decision.
Option 1: personal saving (box 3)
If you choose to put your savings in a personal account, this falls under box 3 of the income tax. Box 3 is the tax on wealth, in which the tax authorities account for your savings and investments. There is a tax-free allowance: this is the amount you can save without tax liability. In 2025, this is € 57,684 per person. If you have a fiscal partner, together you can maintain € 115,368 tax-free. Only the amount that exceeds this threshold will be taxed.
On the portion above the tax-free allowance, you do not pay tax on the actual interest, but on a fictitious return determined by the tax authorities. This means that the tax office assumes an expected return on your assets, regardless of what you have actually received. If the actual return is lower than the fictitious return, you will pay tax on the lower amount.
Personal 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 need to consider additional tax pressure. For entrepreneurs with a sole proprietorship, this may mean that it is more advantageous to save part of the assets business-like, provided it meets the conditions for business savings.
Option 2: business saving (box 1)
Savings that you maintain in your business account fall under box 1 of the income tax. This is because the money is considered part of your business assets. Unlike box 3, the tax authorities do not compute a fictitious return here, but rather 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 instance, you will 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%. It is important for entrepreneurs to know that deductions, such as the small business profit exemption (12.70% in 2025), reduce the taxable income. As a result, you often pay less tax on the interest you receive on your business savings.
A significant difference with personal saving is that the interest on business savings accounts is often slightly lower than on personal savings accounts. This is because business funds often need to be available more quickly, and banks take this into account. Nevertheless, business saving can be fiscally attractive because the interest is included in box 1 and you have the opportunity to make use of entrepreneur deductions and other tax advantages.
Whether business saving is more advantageous in your situation than personal saving depends on how much savings you have, the interest you receive, and the tax space you have due to deductions. Therefore, it is wise to calculate in advance what is the most favourable choice 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 legal maximum amount that you may have in your business account. You may therefore determine how much money you keep for business purposes. It is important that the amount in your business account is proportional to the size and activities of your company. The Tax Authorities check whether there is a business reason for holding larger amounts.
If you leave very large amounts in your business account without a clear business reason, the Tax Authorities may view this as excess liquid assets. That portion will then be classified as personal assets and included in box 3, which means you will still have to pay wealth tax on it. Therefore, it is wise to document well what you are setting the money aside for. This way, you show that the money has a business purpose and you avoid it being wrongly taxed as personal assets.
Don't worry if you have built up a buffer of a few thousand euros. The Tax Authorities understand that this is necessary for healthy business operations. Only when there are significantly high amounts in your business account is it important to justify the business purpose of this money. Without a clear business purpose, this can indeed have consequences for your tax return.
The importance of a business account for business savings
A business account in the name of your company is essential to keep business and personal assets properly separated. When your savings are in an account not registered in your company's name, but in your own name, the tax authorities consider this as personal assets. In that case, the balance in the account is counted in box 3, and you may have to pay capital gains tax on this, even if you are actually using the money for your business.
By using a business account that is genuinely linked to your company, you ensure that the savings are automatically regarded as business assets. This prevents you from unnecessarily paying tax on assets that actually belong to the business assets. Moreover, it provides more clarity, as your personal and business cash flows remain clearly separated.
With a smart business account from GoDutch, you also benefit from smart automation and overview in one platform. This makes it easier to set aside business savings separately while efficiently managing your administration and payments at the same time. In this way, you not only work smarter from a tax perspective, but you also save time and money in your daily business operations.
Business or personal savings: which is the most advantageous?
Whether you should place your savings in a personal account or a business account depends on your situation and the amount of savings you have. If you opt for private savings in box 3, you only pay tax when you exceed the exemption limit. This can be advantageous if your savings balance remains limited.
If you, as a sole proprietorship, place your savings in a business account, it falls under box 1 and you pay tax on the actual interest you receive on these savings. Thanks to deductible items such as the small business tax exemption, this can yield tax benefits, especially on higher amounts or when your savings have a clear business purpose.
The crux is that you must always be able to demonstrate that your business savings are truly necessary for your enterprise. This prevents the tax authorities from seeing it as private assets.
