2027 Dutch Tax Plan: What might change for you?

Expected tax measures  

The government has already announced a number of tax measures that may be presented on Budget Day. It is not certain whether these measures will actually be included in the legislative proposals.   

Below, we have listed some of the expected measures. 

Expected tax measures for individuals 

Increase in Box 1 income tax rates: The rates in the first two brackets of Box 1 of the Personal Income Tax (income from work and home) will increase.  

Limitation of income tax indexation due to freedom contribution: In 2027 and 2028, the tax brackets and tax credits within the Personal Income Tax will be adjusted to a limited extent for inflation in order to finance the freedom contribution. 

Capital gains tax for shareholders of startups and scale-ups (Box 3): Starting in 2028, income tax in Box 3 will be levied on the actual return. Shareholders in startups and scale-ups will then be taxed via a capital gains tax rather than a capital appreciation tax. As a result, taxation in Box 3 will only occur upon (for example) the sale of the shares (rather than annual taxation on the change in value of the shares).   

Introduction of loss carryback for Box 3: Starting in 2029, it will be possible to offset losses in Box 3 against positive Box 3 income from the previous tax year. This expands the options for offsetting losses in Box 3. It will also be possible to offset losses against positive Box 3 income from future years without any limit. A threshold of 500 euros per year applies. 

Abolition of deduction for specific healthcare expenses: As of 1 January 2028, the deduction for specific healthcare expenses and the allowance for specific healthcare expenses will be fully abolished for personal income tax purposes. As a result, it will no longer be possible to claim a deduction for healthcare expenses. 

Reduction in real estate transfer tax for private investors: The real estate transfer tax rate for the purchase of properties that the buyer does not intend to live in themselves (such as a property for letting or a holiday home) will be reduced from 8 percent to 7 percent from 2027.  This reduced rate applies only to private buyers. 

Expected tax measures for business and trade 

Introduction of freedom contribution: A freedom contribution for businesses will be introduced from 2027. The freedom contribution for businesses has been defined as an increase in the AOF (Algemeen Arbeidsongeschiktheidsfonds) contribution. 

Increase energy investment tax credit: The deduction rate for the energy investment tax credit (EIA) will be increased from 40 percent to 45.5 percent effective 1 January 2027. 

Changes to Pillar 2 minimum tax: Following international agreements within the OECD framework (the Side-by-Side Agreement), the minimum tax (Pillar 2) will be amended.    

Restriction on participation exemption for foreign exchange results on hedging instruments: For fiscal years beginning on or after 1 January 2027, only the ‘unpriced foreign exchange results’ on hedging instruments may be included under the participation exemption. The unpriced foreign exchange result is the difference between the priced-in (expected) exchange rate movement at the time the hedging instrument was entered into and the actual exchange rate movement upon settlement of the hedging instrument. As a result of this measure, the priced-in foreign exchange result can no longer be included under the participation exemption regime. 

Increase of VAT rate for ornamental plant cultivation products: The reduced VAT rate for the supply of ornamental plant cultivation products will be abolished effective 2028. As a result, the VAT rate for items such as flower bulbs, flowers, plants and nursery products (such as Christmas trees) will increase from 9 percent to the standard VAT rate of 21 percent. 

Introduction of real estate transfer tax exemption for housing associations: From 2027, transfers of immovable property within the scope of social activities (Services of General Economic Interest) will be exempt from real estate transfer tax. As a result, housing associations that transfer immovable property (such as dwellings) to one another within the scope of their social housing remit will not pay real estate transfer tax.   

Expected tax measures for employees and employers 

Elimination of exemption for industry-specific products: Under the work-related expenses scheme, the targeted exemption for industry-specific products will be eliminated as of 1 January 2027. The reimbursement (at a discount) or provision of industry-specific products from the withholding agent’s company will then no longer be exempt under any conditions. 

Changes to stock options in startups and scale-ups: Under payroll tax rules, the taxation of employee stock ownership in startups and scale-ups is being adjusted. Firstly, the tax base on which payroll taxes are withheld is being reduced to 65 percent of the income from stock options (instead of 100 percent). In addition, taxation will occur no later than the time of the actual sale of the shares. 

Freezing the pension accrual cap: From 2027, the maximum pensionable salary will not be indexed for a period of six years. The ceiling will remain at the 2026 level until 2032, amounting to 137,800 euros.    

Expected tax measures for energy, climate and mobility 

Extension of excise duty reduction on petrol: The reduction in fuel excise duty on petrol will be extended until 31 December 2027.