full time employment + side business income tax implications

2 posts in this topic

Hi All, 


I have a question about tax implications.


If a person (on Blue Card) is employed full time and wants to start a business on the side, 
what are the main tax implications. 


The business is not expected to generate much income in the first few years. 

The first year will have setup costs (for creation of product) --> read as business loss. 

It will be a one person company. 


What is the recommended business registration for this setup. 


Will having a business impact the taxation on employment income .

I understand if the overall income is higher, the employment income tax rate will change. 
However, I am trying to determine if there will be other tax implications. 


Can the business startup expenses be deducted, 
against the employment income. 



Year 1 employment salary: 30k euros

Year 1 business net loss: 10k euros 


Year 2 employment salary: 30k euros

year 1 business net profit: 5k euros


all help on this topic is greatly appreciated. 






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I just want to add,
that i probably don't want to be consider a freelances but rather a trader. 

as i will have an expense to create a particular product that i want to sell. 


i am guessing that freelancers can't deduct such expenses from tax, as they only offer services not products. 




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