Starter's Deduction
The starter's deduction is an extra tax benefit on top of the self-employed deduction. You qualify if you have applied the self-employed deduction no more than 2 times in the past 5 years. So it's intended for starters, but you don't necessarily have to be in your very first year. The starter's deduction is €2,123 in 2025 and is subtracted from your taxable profit just like the self-employed deduction. You do need to meet the hours criterion. The starter's deduction also only applies at the base rate of 36.97%.
Example
You've just started as an entrepreneur and make €35,000 in profit. You apply both the self-employed deduction (€2,470) and the starter's deduction (€2,123). Your taxable profit drops to €30,407. You save a total of (€2,470 + €2,123) × 36.97% = €1,698 in tax.
Why does this matter?
Just started as an entrepreneur? Take advantage of the starter's deduction. You can use it up to 3 times in your first 5 years. Combine it with the self-employed deduction and SME profit exemption for maximum benefit as a starter.