On Budget Day 2025, the Dutch government presented its new tax plan. This plan introduces a wide range of measures that will directly impact entrepreneurs, employers, and private individuals. In this article, we highlight the most important tax changes in the Netherlands for 2025, which you can also find in our full publication available for download via the button below.
Key tax changes for entrepreneurs
- Energy investment allowance (EIA): from 2025, the maximum is €151 million per taxpayer per year.
- Culture, media, and sports: the planned VAT increase from 9% to 21% has been cancelled.
- Nil VAT returns: entrepreneurs can now object to or appeal a nil VAT return.
- Non-alcoholic beverages: only pure milk, buttermilk, and certain soy drinks remain exempt from consumption tax.
Tax changes for directors and major shareholders (DGA)
- Mixed expenses: business expenses such as meals, drinks, and representation are only partly deductible, unless taxed as wages. The threshold is €5,700.
- Mutual funds (FGR): a transitional scheme prevents double taxation due to new FGR rules.
- Lucrative interest scheme: from 2026, higher returns from shareholdings in private equity will be taxed more heavily, with an effective rate up to 36%.
Dutch tax changes for employers and employees
- Shared company bicycles: no taxable addition if the bike is not regularly stored at home (retroactive to 2020).
- 30% ruling Netherlands (expat scheme): from 2026, certain costs (utilities, private communication with home country) will no longer qualify as extraterritorial expenses.
- Company car (fossil-fuel): from 2027, employers providing non-emission-free cars must pay a 12% pseudo-final levy.
- Early retirement scheme (RVU): exemption is extended and increased, but penalty tax rates will gradually rise to 65%.
General tax changes in the Netherlands
- Income tax Netherlands 2025: limited inflation correction means taxpayers will enter higher brackets sooner.
- Tax credits: general, labour, and elderly credits will increase, but phase-out thresholds will also rise.
- Owner-occupied homes: the imputed rental value remains 0.35% up to a WOZ value of €1.34 million.
- Box 3 tax Netherlands:
- Forfaitary return on other assets rises from 5.88% to 7.78%.
- Tax-free allowance decreases to €51,396 (€102,792 for partners).
- Green investment exemption reduced in 2027 and abolished in 2028.
- Bonds must be valued at market value to close loopholes.
- Gift and inheritance tax Netherlands: the 180-day rule is abolished; filing period for inheritance tax extended to 20 months.
- Mobility and energy taxes:
- Lower motor vehicle tax discount for electric cars.
- Fixed BPM for emission-free special vehicles.
- Distance-based air travel tax from 2027.
- Higher energy tax reduction and extended excise duty discount on fuel.
What do the Dutch tax changes mean for you?
The Dutch tax plan 2025 introduces significant changes for businesses and individuals alike. From investments and employment conditions to the box 3 wealth tax Netherlands and the expat 30% ruling, these measures can have a substantial impact on your financial planning.
At Practical | Excellence in Finance, we keep track of these developments and advise you on how to prepare for the upcoming tax changes.
👉 Would you like to know how the 2026 VAT increase, the changes to box 3 tax in the Netherlands, or the adjustments to the 30% ruling will affect your situation? Contact us via www.practical.nl or call us at +31 (0)88 011 40 00.
