End of the Year Tax Tips – the Netherlands

November 20, 2025

As 2025 draws to a close, it’s prudent to evaluate your tax situation and, where possible, optimize it. Below you will find our year-end tax tips for the Netherlands, with a focus on anticipated changes in the Tax Plan for 2026. Kindly note that these adaptations to the Dutch fiscal system are still being reviewed by the Dutch government, meaning that these adaptations are still subject to change during the legislative process.

1. Succession Act

1.1 Simplification of the 180 day rule

The Succession Tax Act provides for the levy of inheritance tax and gift tax. Until now, gifts donated within 180 days prior to the testator’s passing were subject to gift tax and inheritance tax, albeit that the gift tax paid would be deducted from the inheritance tax due to prevent double taxation.

As of January 1, 2026, gifts made within 180 days prior to death will no longer be taxed with gift tax, but solely with inheritance tax. This reduces the administrative burden, as submitting a gift tax return is no longer required

1.2 Equal treatment of biological and legal children

Back in 2024, the Supreme Court ruled that the distinction made by the Succession Tax Act between legal children and biological children conflicts with the principle of non-discrimination as dictated in article 14 of the European Convention on Human Rights.

As of 2026, biological children and legal children will be treated equally for gift- and inheritance tax purposes, meaning they will also qualify for the special rate that applies to close family members as well as the child exemption. Taxpayers must provide a DNA test to prove that the donator or testator is their biological parent.

As the proposed change enters into effect on January 1, 2026, taxpayers that wish to invoke the special rate and the child exemption prior to this date may do so by appealing to the hardship clause.

1.3 Unusual entitlement to matrimonial estates

By concluding a marriage or a registered partnership, a so-called matrimonial estate is established between the partners, in case no (pre)nuptial agreement is concluded. In broad terms, the matrimonial estate entitles both parties to an equal part of the matrimonial estate (50/50). It is however possible to agree to a different partition of the matrimonial estate, such as 20/80. These unequal entitlement rights to the matrimonial estate can give rise to the transfer of assets without any gift or inheritance tax being due.

The effect of the proposed change is as follows. All marriages or registered partnerships concluded as of September 16 2025 at 16:00 PM, with an unequal matrimonial estate, will be brought into scope of the Succession Act. If one partner is entitled to more than 50% of the estate, gift or inheritance tax will be due upon the dissolution of the marriage or registered partnership. Kindly note that the aforementioned amendment will also apply to individuals that have a notarial cohabitation contract.

1.4 Prolongation of the deadline to file the inheritance tax returns

The deadline for filing the inheritance tax return will be prolonged from 8 months after the testator’s passing to 20 months. Tax interest will also be computed as of the new 20 month mark.

2. Personal Income Tax Act

2.1 Changes in Box 3 (income from savings and investments)

As of 2026, several adjustments could be implemented in Box 3:

• The deemed return on other assets will increase by 1.78 percentage points to 7.78%.
• The tax free allowance will be reduced from €57,684 to €51,396.
• From 2026 onwards, rental income as well as benefits from own use of immovable property will also be included in the deemed return.

Taxpayers who can demonstrate that their actual return on investment (ROI) is lower than the deemed return may use the actual-return form to report their actual ROI, ensuring tax is levied only on the actual lower ROI.

Due to the lower tax free allowance, more individuals might become liable for Box 3 tax.

2.2 Broadening the tax base for lucrative interests (Box 2 multiplier)

A tax base multiplier will be introduced for indirectly held lucrative interests. An indirect lucrative interest exists when the lucrative interest is held through a substantial interest (Box 2). Provided that certain requirements are met, the lucrative interest can be taxed against the applicable Box 2 rates instead of the standard rates in Box 1.

Should the requirements for application of the Box 2 rates be met, then the introduction of the multiplier will result in an increase of the effective tax rate as follows:

• from 24.5% to 28.45% in the first Box 2 bracket;
• from 31% to 36% in the second Box 2 bracket.

2.3 Adjustment of the bicycle scheme

Some employers provide their employees with a type of shared bicycles to commute to work. As of 2026, the supply of these types of  bicycles by employers will be tax free, provided that these bicycles are only incidentally stalled at the employee’s place of residence.

2.4 Aggregation rule for the Energy Investment Allowance (EIA)
An aggregation rule will be introduced for the maximum investment amount qualifying for the EIA. Per taxpayer, a maximum of €151 million (2025 amount) in fiscally facilitated energy investments per year will apply, regardless of whether these investments are made in a taxpayers own business or through a partnership. The measure has very limited operational impact and does not require additional administrative actions on the taxpayer’s part.

2.5 The Small and Medium-sized enterprises (“SME”) profit exemption and the private business ownership allowance

The SME profit exemption remains stable at 12,7% of the profit after deduction of entrepreneurial allowance. The private business ownership allowance will be further decreased to €1,200. The reduction of the private business ownership allowance will be completed in 2027, reaching € 900.

3.  Vehicle taxes

3.1 Adjustment of private motor vehicle and motorcycle tax (“BPM”) rates for zero emission vehicles

Effective retroactively from January 1, 2025, fixed BPM rates will apply to zero emission vehicles:

• Electric passenger cars: €667
• Zero emission motorcycles: €200
• Zero emission special passenger cars: €667

The measure applies until 2030 and aligns with existing policy to stimulate zero emission mobility.

3.2 Periodic adjustment of BPM thresholds and rates

To prevent revenue losses due to decreasing CO₂ emissions of new vehicles, BPM thresholds and rates will be periodically adjusted in 2026, 2027, and 2028. Thresholds will be lowered by 1.55%, 1.46%, and 1.38% respectively, while the rates will be increased by 1.57%, 1.48%, and 1.40% respectively.

3.3 Extension of the motor vehicle tax (MRB) discount for electric cars

The existing MRB rate discount for electric passenger cars will be extended through 2029:

• 30% discount in 2026–2028
• 25% discount in 2029

This ensures a more balanced tax treatment between electric and fossil fuel vehicles.

3.4 Abolition of quarter rates in motor vehicle tax for certain vehicles

The quarter rates for certain trucks and vans (such as mobile workshops and fairground vehicles) will be abolished as of January 1, 2028.The regime is scarcely used and no longer aligns with the MRB’s tax base. A two year transition period will apply, allowing vehicle owners to adapt.

This contributes to simplification of motor vehicle taxation and reduces administrative burden.