Hours Criterion
The hours criterion is a requirement for several entrepreneurial tax benefits in income tax. You meet it if you spend at least 1,225 hours per year working on your business. That averages out to about 24 hours per week. The hours that count are broad: not just directly productive work, but also administration, acquisition, travel time for business appointments, and training all count. If you work in employment alongside your business, you must spend more hours on your business than on your job. It is essential to keep a good record of your hours.
Example
You work as a freelancer alongside a part-time job of 20 hours per week. You spend 30 hours per week on your business: 24 hours client work, 4 hours administration, 2 hours acquisition. Over the year that's 30 × 50 weeks = 1,500 hours. That's above 1,225 hours and more than your 1,000 hours in employment. You meet the hours criterion.
Why does this matter?
Without meeting the hours criterion, you miss out on the self-employed deduction and the starter's deduction – together worth thousands of euros in tax savings. Therefore keep accurate hour records. A simple Excel file or app is sufficient, as long as it's consistent and credible.