The incoming Dutch government recently presented its coalition agreement, titled “Aan de slag” (Let’s get to work). The agreement outlines a strategic roadmap for the coming years, with a strong emphasis on business stability, income tax reform, and national security.
For our clients and partners in global mobility, several key measures are set to impact the business climate and the financial landscape for international employees. Here is a straightforward breakdown of the most important tax takeaways.
Stability for Businesses and Expats
A primary goal of the new agreement is to provide a predictable environment for companies operating in the Netherlands. Notable points include:
Streamlined Green Incentives: Environmental and energy investment deductions will be merged into a single, simpler scheme where possible.
Maintenance of Core Rules: The government intends to keep the corporate income tax rate stable. Crucially for the mobility sector, the agreement explicitly mentions maintaining current expat rules, participation exemptions, and R&D wage incentives (WBSO).
Support for Tech and AI: The R&D wage incentive will be expanded to specifically cover the development of Artificial Intelligence and new technologies.
Employee Equity: New provisions will be introduced to make it easier for companies to remunerate staff using tax-favored equity and stock options — a significant move for startups and scale-ups.
Reforms for Individuals and Box 3
The government aims to simplify the personal income tax system under the principle that “work must be rewarded.”
- Box 3 Transition: The reform of the Box 3 (wealth tax) regime will continue. The goal is to move toward a system where taxpayers are taxed on actual gains upon realization, rather than the current system of estimated accruals.
- Pension and Housing: The maximum wage for tax-facilitated pension build-up will be frozen at the current level (€137,800) until 2032. However, there are no planned changes to the deductibility of mortgage interest.
The “Freedom Contribution”
To fund increased investment in defense and national security, the government is introducing a “freedom contribution” (vrijheidsbijdrage). This will impact both employers and employees:
- Employers: Will see an increase in the employer’s disability contribution.
- Employees: Will see a limitation on the yearly indexation of income tax brackets, effectively leading to slightly higher tax pressure as wages rise.
Indirect Taxes and Real Estate
Real Estate Transfer Tax: For homes not intended for self-occupation (rental properties), the transfer tax will be reduced from 8% to 7% starting in 2027.
VAT and Excise: The VAT on ornamental horticulture (flowers/plants) will rise from 9% to 21%. Meanwhile, the current reduction in petrol excise duty will be extended through 2027.
Sugar Tax: A new levy on pre-packaged products with more than 6% sugar is slated for 2030.
What’s Next?
While the coalition agreement sets the direction, these measures will need to be drafted into formal legislation and approved by Parliament before taking effect.
At Executive Mobility Group, we are closely monitoring these developments to ensure our clients are prepared for these transitions. If you have questions about how the “Freedom Contribution” or the stability of expat rules might affect your workforce, please reach out to our tax and mobility experts.
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