Tax Plan 2026
Key Measures for International Entrepreneurs
On Budget Day, the Dutch government presented the Tax Plan 2026. Some measures had been announced earlier. Due to the caretaker status of the cabinet, the plan contained few new proposals. Below is an overview of the most relevant measures for businesses and international investors:
1. Investment Incentives – Energy Investment Allowance (EIA)
The Energy Investment Allowance (EIA) encourages companies to invest in energy-saving business assets. Businesses can deduct 40% of their investments from taxable profits, up to a joint maximum of €151 million per year.
Currently, companies participating in partnerships could make use of this ceiling multiple times, due to the absence of an aggregation rule. A new aggregation cap will prevent this going forward.
2. Carried Interest Taxation
The tax burden on carried interest (“lucratief belang”) will increase. At present, private equity managers and executives pay less tax on wealth accumulated as part of their remuneration than individuals holding assets in Box 3. To close this gap, the scheme will be amended so that the Box 2 tax burden aligns with the Box 3 rate of 36%.
3. Foreign Employees
The scheme for foreign employees temporarily working in the Netherlands will be adjusted. Currently, there is no level playing field between employees who incur additional expenses and those who do not. As a result, certain costs—such as gas, water, and electricity—will no longer be eligible for reimbursement.
4. Corporate Sustainability and Environmental Taxes
Drinking water tax: From 2026, companies will pay tax on a much larger portion of the water they consume. The cap will increase from 300 cubic meters to 50,000 cubic meters. In 2027, the cap will be abolished entirely, meaning businesses will pay tax on all drinking water use.
Motor vehicle and BPM incentives: Employers offering employees non-electric cars will face an additional charge from 2027. At the same time, the motor vehicle tax discount will increase from 25% to 30%. The reduced BPM (registration tax) rate for zero-emission vehicles will also apply to special zero-emission passenger cars and motorcycles.
5. Mobility and Transport
Company bicycles: The fixed taxable benefit of 7% for bicycles made available to employees will be revised. No benefit in kind will apply if the bicycle is only incidentally (maximum 10%) stored at the employee’s home or place of stay. The new rules also remove the distinction between regular bicycles and shared bicycles.
Company cars: From January 1, 2027, a pseudo-final levy of 12% of the catalog value will apply to fossil-fuel and hybrid cars provided by employers (including for private use). For cars older than 25 years, the fair market value applies.
Electric cars: From 2026, the taxable benefit for new electric cars will be equal to that of non-electric cars: 22% of the catalog value. This ends the difference in treatment that has existed in recent years.
6. Income Tax
The income tax brackets and tax credits will not be fully indexed to inflation. As a result, taxpayers will enter higher tax brackets slightly earlier.
First bracket: increases from €38,441 to €38,883 in 2026.
Second bracket: increases from €76,817 to €79,137 in 2026.
7. Pension & Early Retirement Scheme
Employers may pay employees an amount for early retirement, which is normally subject to a 52% pseudo-final levy. A temporary exemption (2021–2025) allows certain employees to retire up to three years before the state pension age without triggering this levy. It is proposed that this exemption remain in place, with the threshold amount raised by €300 gross per month.
8. Political Context
The House of Representatives will discuss the Tax Plan 2026 during the General Political Reflections. With national elections approaching, it remains uncertain which of the announced measures will actually be implemented.
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