On Budget Day (‘Prinsjesdag’), 16 September 2025, the Dutch government presented its Tax Plan 2026. In this special update we highlight the key measures of the tax plan. The measures will enter into force on 1 January 2026, unless stated otherwise.
Measures for (high-net-worth) individuals
Income tax rate
- In 2025, a three-bracket system applies in Box 1 of personal income tax (income from work and home). The rates and thresholds will be adjusted.
- Several changes to the tax credits have been proposed.
- In 2025, a two-bracket system applies in box 2 (income from substantial interest). The rates and thresholds remain largely unchanged.
- In 2025, a flat rate of 36% will apply in box 3 of income tax (income from savings and investments). This rate will remain unchanged.
- Increase in lump sum for other assets in box 3 and reduction of tax-free capital.
- The lump sum for other assets will be increased to 7.78% as of 2026 (2025: 5.88%) and the tax-free allowance will be reduced to €51,396 (2025: €57,684).
- All rates are listed in tables on this webpage.
New measures for Budget Day (inheritance and gift tax):
- Fractional shares: from 1 January 2026, everything above 50% of the matrimonial community of property will be subject to inheritance or gift tax, unless unequal fractional shares have already been agreed before 16 September 2025 (transitional law).
- Inheritance tax return period: extended from 8 to 20 months; start of tax interest is in line with this (from deaths after 1 January 2026).
- Biological children: assimilated to legal children for gift and inheritance tax purposes, provided that biological parentage is demonstrated by DNA test.
- 180-day fiction: gifts within 180 days before death will now only count for inheritance tax purposes, no longer for gift tax purposes (effective 1 January 2026, with retroactive effect).
Real estate transfer tax
It was previously announced that the transfer tax rate for the acquisition of homes will be reduced from 10.4% to 8% as of 1 January 2026. For other real estate, the general rate of 10.4% will continue to apply.
Value added tax (VAT)
The 2025 Tax Plan included an increase in the VAT rate from 9% to 21% on accommodation, culture, media and sports. This rate increase was supposed to take effect on January 1, 2026, but is now being reversed for culture, media and sports. This means that the reduced VAT rate on culture, media and sports will be retained. The VAT increase on accommodation (short stays within the framework of the hotel, guesthouse and holiday spending business) will go ahead. For this, the payment in 2025 for accommodation in 2026 will also be taxed with 21% turnover tax.
Revision of VAT on real estate investment services (from 1 January 2026):
- Extension of VAT adjustment scheme to investment services for immovable property.
- Treshold: €30,000 per dienst.
- Revision period: 5 years.
- The aim is to combat tax-saving structures for short-term taxed rentals.
The corportate income tax rate remains unchanged: 19% up to €200,000 and 25.8% on the excess.
Hedging currency results: Costs of hedging instruments are now deductible, while profits are often exempt. This will be adjusted, expected by 2027.
Second Act amending the Minimum Tax Act 2024: Multinationals and groups with a turnover of €750 million or more pay at least 15% profit tax. New administrative guidelines from the OECD will be incorporated into Dutch law. This applies (largely) retroactively from 31 December 2023.
Bill to implement the EU Data Exchange Directive: Groups that fall under the minimum tax must file an additional tax information return. From 2026, this can be done centrally in one member state, with automatic exchange between member states.
Measures for employers
Pseudo-final levy on non-emission-free (lease) cars.
In order to bring agreed climate goals closer, it is proposed to regulate the market for company cars that are also used by employees for private purposes by 2027. The aim is that all cars made available by employers to employees for private use from that moment onwards will be fully emission-free. Therefore, as of 2027, a pseudo-final levy with a tax rate of 12% on the value of a company car provided by the employer to the employee (if not fully zero-emission) is proposed. For cars made available exclusively for business operations, the pseudo-final levy does not apply.
The pseudo-final levy will be due from 1 January 2027 for cars that are first made available by the employer on or after that date. If an employer has provided a passenger car to an employee before 2027, a transitional period will apply until 17 September 2030. After the end of the transitional period, the pseudo-final levy will apply to all company cars made available to employees, unless they are fully zero-emission.
Other measures
Car related tax
The rate discount in motor vehicle tax for electric cars will be extended until 2029. The discount percentage will decrease: 30% in 2026, 2027 and 2028 and 25% in 2029. For plug-in hybrids, the discount will expire from 2026 onwards.
The reduced excise duty rates for petrol, diesel and LPG will continue to apply until 1 January 2027 at the level of 1 July 2023. This means an increase in 2026 has been postponed again.
Temporary transitional law mutual fund (FGR)
The definition of the mutual fund (FGR) has changed as of 2025. To prevent some funds from only being liable to tax for a short time, there will be temporary transitional law. Funds can choose not to count as FGR from 2025. The condition is that all participants agree by 28 February 2026 at the latest. The transitional law will run until 1 January 2028 at the latest, or earlier if the definition of the FGR is amended again.
Streamlining of the Right of Tax Inspection Act
In addition, the Tax Inspection Streamlining Act introduces an active right of inspection. Taxpayers will have digital access to all documents at the latest when the assessment or decision is made. This will be introduced in phases per tax, starting with income tax.
Differentiation of Flight Tax Act
The flight tax is also changing. From 2027, the fare will depend on the distance from the destination: the further the flight, the higher the tax.
Tax reduction on energy tax
The tax reduction in energy tax will be structurally increased from 2026.
Consumption tax on non-alcoholic beverages
Finally, the consumption tax on non-alcoholic beverages will be tightened. Adding a touch of dairy to avoid tax will then no longer be possible. Only unprocessed milk and buttermilk are exempt.
Contact
Feel free to contact us, if you need an accountant or tax advisor in the Netherlands or abroad, via Mark-Jan van der Weerden, tax partner, reachable on +31 (0)40 240 9473 or e-mail mvdweerden@joanknecht.nl. We are happy to help you, even outside your borders!