European Netherlands Tax Plan 2027

September 21, 2026

The Dutch government presented its 2027 Tax Plan package on 15 September 2026 to parliament. The proposals are now subject to parliamentary approval. Most measures are intended to apply from 1 January 2027.

• Personal income tax. For taxpayers below state pension age, the combined income tax and insurance premiums will be increased to 36,23% up to an annual income of € 39.247, 38,16% up to € 78.426. The rate above that amount remains the same at 49,50%. The maximum employment tax allowance (in Dutch: “arbeidskorting”) will rise to € 5.929.
• Residential property. Transfer tax on homes acquired for letting or as second homes will be reduced from 8% to 7%. An exemption is proposed for qualifying transfers between housing associations.
• International structures. A fair market step-up value is introduced for non-resident substantial shareholders when a company moves its effective management to the Netherlands. Another law introduces additional Pillar Two safe harbours, with retroactive effect, to simplify calculations for qualifying groups.
• Business investment. The energy investment allowance (in Dutch: “energie-investeringsaftrek”) will increase from 40% to 45,5% of qualifying expenditures. The annual profit cap under the simplified innovation box calculation would rise from € 25.000 to € 100.000.
• Travel allowances and company cars. The maximum tax-free mileage allowance of € 0,25 would be incorporated into legislation, retroactively from 1 January 2026. This amount is already permitted under a published policy decision. The youngtimer age threshold would increase to 17 years in 2027 and 20 years in 2028, under specified conditions.
• Employee share options. A separate law would defer taxation of qualifying start-up shares acquired via employee options until the moment of sale, in which case only 65% of the qualifying gain would be taxable. The intended start date is 1 January 2027.
• Further changes. Petrol excise relief would continue through 2027. The package also proposes abolishing the specific healthcare-cost deduction and the reduced VAT rate for flowers from 2028.

Contact
If you wish to receive further information or discuss your tax position, kindly contact: