On 16 September 2025 (Budget Day 2025), the Ministry of Finance submitted the Tax Plan 2026 to the House of Representatives. This package contains various proposals in the field of tax legislation. In this overview, we set out the most important legislative proposals and amendments.
We note that the measures from the Tax Plan 2026 may still change during parliamentary debate. Since the cabinet is currently in a caretaker status, it is likely that more changes will take place in the course of the legislative process than in previous years, partly as a result of the upcoming elections for the House of Representatives.
Below you will find the ten most important points from the Tax Plan 2026.
1. Reduction of real estate transfer tax rate for residential investment properties
As of 1 January 2026, the general rate for real estate transfer tax on the acquisition of residential properties by investors will be reduced from 10.4% to 8%. This reduced rate specifically applies to the purchase of residential properties that will not be used by the acquirer as a main residence, such as rental and investment properties. For private individuals purchasing a property to live in themselves, the existing 2% rate remains in force.
The new 8% rate applies exclusively to immovable property that, at the time of transfer, “by its nature is suitable for residential purposes.” This means that buildings that originally have no residential designation (for example offices or commercial premises) and are only converted or transformed into residences after acquisition, do not qualify for the reduced rate. For such non-residential properties, the general 10.4% rate continues to apply.
The real estate transfer tax is levied at the moment the notarial deed of transfer is executed. The time of this legal act is decisive for the applicable rate. For real estate transactions scheduled around the turn of the year, the planning of the transfer date can therefore make a significant fiscal difference.
2. VAT revision on real estate services
The introduction of a VAT revision period for real estate services had already been announced in the Tax Plan 2025. As of 1 January 2026, this measure will actually enter into force. For services relating to immovable property with an invoice value of at least €30,000 per service, a revision period of five years will be introduced.
This concerns services that make a lasting contribution to the immovable property, such as renovation, expansion, repair, replacement, and maintenance. Demolition work connected with renovation is also included. The revision period applies to services that are taken into use from 1 January 2026 onwards. This means that entrepreneurs must assess during five years after initial use whether the services are still consistent with the original VAT use.
The measure is particularly aimed at countering certain VAT-saving structures, in particular the so-called ‘short-stay’ structures. In these cases, properties were temporarily rented out with VAT after a renovation (for example to expats or tourists) in order to fully deduct the VAT on renovation costs, after which the rental was switched to VAT-exempt leasing. By introducing a revision period of five years, such a change in use can still lead to repayment of (part of) the previously deducted VAT.
Although the measure was primarily introduced to counter this type of structure, in practice it has a much broader scope. All owners and users of real estate who purchase such services are faced with additional administrative obligations. It becomes necessary to keep a revision administration for each service exceeding €30,000 and to monitor the actual use of the real estate for five years.
This amendment therefore leads to a considerable increase in the administrative burden for real estate entrepreneurs and users and requires timely preparation within the organization and the financial administration.
3. Abolition of reduced VAT rate on short stay
Up to and including 31 December 2025, the reduced VAT rate of 9% applies to the provision of accommodation (such as hotel stays, holiday parks, boarding houses, campsites, and bed & breakfasts). As of 1 January 2026, this reduced rate will be abolished and accommodation will be subject to the general VAT rate of 21%.
The government justifies this measure with regard to tax revenues and simplification of the VAT system. By no longer applying the reduced rate to accommodation, the aim is also to create a level playing field between different forms of leisure activities and consumption that are already taxed at the high rate.
A transitional arrangement has been announced. This stipulates that reservations made in 2025 for overnight stays in 2026 will also fall under the 21% rate. This means that advance payments or bookings paid before 1 January 2026, but for which the actual service (the stay) takes place in 2026, must nevertheless be taxed at the high rate. Only services that actually take place before 1 January 2026 will still fall under the 9% rate.
The consequences for the sector are significant. For consumers, the measure means a direct price increase of accommodation services. Entrepreneurs in the hospitality sector will have to determine whether they pass on this VAT burden in full or (partially) absorb it themselves. In addition, the change requires adjustments to reservation and booking systems, general terms and conditions, and price lists. Careful handling is also required with advance payments, vouchers, and contracts already concluded for accommodation services that take place (partially) in 2026.
For entrepreneurs with an international clientele, the rate increase may also have consequences for international competitiveness. Tourism in particular may be affected by higher prices compared to surrounding countries where lower VAT rates for accommodation continue to apply.
4. Income tax: box 2 rates and lucrative interest
As of 1 January 2026, amendments will enter into force regarding box 2 and the levy on lucrative interests. Below are the key points, including conditions and exceptions.
New rates in box 2
The rate in box 2 will be split into two brackets:
- 24.5% on income up to and including €68,843;
- 31% on the excess.
Lucrative interest – conditions for (heavier) taxation
Under the proposed scheme, lucrative interests held through a company, and in which the taxpayer has a substantial interest, form the basis for application of box 2.
For this scheme, a distribution requirement applies: at least 95% of the benefits from the lucrative interest must be distributed to the shareholder (the taxpayer) in the year in which they are realized.
Multiplier and effective rate
When these conditions are met, the distributed benefit (which falls under the substantial interest variant) will be multiplied by a factor relating to the difference between the normal box 2 rate (maximum 31%) and the rate of 36% (as intended for this specific category).
As a result, the effective tax rate on that part of the benefit can rise to 36%, but this does not automatically apply to all benefits from lucrative interests – only to those portions that fall under the above-mentioned conditions.
Anti-abuse: shifting from box 3 to box 2
The scheme also aims to prevent interests from being shifted shortly before realization from box 3 to box 2 in order to benefit from the lower levy or historical acquisition prices.
In such cases, the acquisition price in box 2 must be set at the fair market value at the time of the shift, instead of the historical acquisition price.
If the fair market value is higher than the amount invested, the benefit (or at least part of it) remains taxable in box 1 in some situations, so that the avoidance possibility is limited.
For whom these amendments apply
This scheme applies to all taxpayers with indirectly held lucrative interests, regardless of sector – not only private equity managers.
The provisions apply in particular when corporate structures are involved with intermediate holding companies in which the interest previously fell in box 3 and is then shifted to box 2.
5. Income tax: box 3 amendment deemed return on other assets and reduction of tax-free allowance
The government intends to switch to a new box 3 system based on actual return as of 2028. Until that time, the temporary legislation will remain in force, under which notional return percentages are applied for savings, other assets (including second homes, other real estate, investments), and debts, which are aligned as closely as possible with practice.
As of 1 January 2026, two important parameters will change:
- The notional return for “other assets” will increase to 7.78%.
- The tax-free allowance will be reduced to €51,396 per person (partners: €102,792).
Taxpayers who believe that their actual return is lower than the return assumed under the temporary system may opt for the Statement of Actual Return (the so-called counter-evidence scheme). You may always apply the method most favorable to you: either the temporary notional scheme, or the levy based on the actual return achieved.
Practical:
- Check per asset category (savings, other assets, debts) the composition and actual result; when choosing actual return, sound substantiation and administration are required (e.g., rental income, expenses, value changes).
- Due to the increase in the notional rate for other assets and the reduction of the tax-free allowance, the box 3 burden on real estate and investments may increase significantly; reconsider, where appropriate, the financing mix, timing of expenditures/income, and portfolio composition.
- The choice between notional and actual return may differ from year to year; evaluate annually which option is most advantageous.
6. Income tax: box 3 counter-evidence scheme benefit due to own use of real estate
As of 1 January 2026, when calculating the actual return in box 3, taxpayers must also take into account the benefit of own use of real estate. This means that, when a dwelling or other immovable property in box 3 is not rented out but used by the owner himself, it is assumed that an economic benefit is enjoyed, comparable to receiving rent.
This deemed benefit is set at 5.06% of the WOZ value of the property in question. This percentage is based on the average economic rental value, as determined in independent research. It is therefore a notional addition that is independent of actual rental income.
Importantly, this benefit not only applies to the period in which the property is actually inhabited or used by the owner, but also to the time that the property is at his disposal, such as during vacancy or temporary non-use. This prevents taxpayers from escaping taxation by leaving a dwelling or second home vacant.
7. Income tax & Inheritance Tax Act: update of vacancy ratio
As of 2026, the scheme concerning the vacancy ratio in both the Income Tax Act 2001 and the Inheritance Tax Act 1956 will be updated and codified.
Current system
For the valuation of dwellings that fall in box 3 (not the owner-occupied home), the WOZ value applies in principle, which is based on the value in freely deliverable condition. Since a dwelling can decrease in value when rented out, the law provides in certain situations for application of the vacancy ratio. This ratio reduces the WOZ value based on the rent level and the degree of tenant protection.
Codification of case law
The Supreme Court ruled in decisions of 3 April 2015 and 23 September 2016 that application of the vacancy ratio may conflict with the intention of the law if it leads to a value that is 10% or more higher than the actual market value of the rented dwelling. In such cases, the market value on the WOZ reference date must be used, and not the (too high) vacancy ratio.
The legislator now explicitly incorporates this case law into the law, so that clarity is created and the existing policy is formally laid down.
Exclusion of non-arm’s length rental
A second amendment is that the vacancy ratio will no longer apply in cases of non-arm’s length rental between related parties (for example between family members or affiliated companies). In such cases, the dwelling must henceforth be valued without application of the vacancy ratio, i.e., based on the regular WOZ value. This prevents parties who deliberately charge a non-market (too low) rent from still benefiting from the valuation discount via the vacancy ratio.
Practical consequences
- Taxpayers who rent out dwellings under market conditions will in principle retain the right to apply the vacancy ratio, but must take into account the 10% correction if the outcome deviates too much from the market value.
- Structures in which dwellings are rented at symbolic or non-arm’s length rents to related parties (e.g., children or group companies) will lose the benefit of the vacancy ratio and will from 2026 have to calculate using the full WOZ value.
- For the Inheritance Tax Act, this means that in gifts and inheritances of rented dwellings, stricter valuations will also apply, so that the tax base for inheritance and gift tax may increase.
8. Corporate income tax: temporary transitional law for mutual fund (fonds voor gemene rekening)
Since 1 January 2025, a new definition of the mutual fund (FGR) applies in the Netherlands. The main rule is that Dutch and foreign partnerships are fiscally transparent, unless four cumulative criteria are met which result in an entity still being classified as a non-transparent FGR.
Bottlenecks in practice
Despite clarification in a decree of December 2024, the amended definition in 2025 led to significant uncertainty and bottlenecks. In particular, with (foreign) limited partnerships (CVs) and comparable limited partnerships, the situation arose in practice that structures which were fiscally transparent up to and including 2024 could unexpectedly become taxable as of 2025. This was regarded as undesirable, since it often involved unintended reclassifications.
Transitional measure 2025–2028
To mitigate these undesirable effects, a transitional measure has been introduced. This means that partnerships which were fiscally transparent up to and including 2024 may choose not to be classified as FGR after 1 January 2025 either, on a temporary basis. The condition is that all participants agree no later than 28 February 2026 to retain the transparent status. The transitional scheme runs until at the latest 1 January 2028.
Conditions and further details
- If the intention was not made known before 2025, the transparent status may still be retained provided that all participants explicitly opt for transparency before 28 February 2026.
- The transitional scheme may possibly end earlier, namely if the legislator amends the FGR definition again. New legislation is expected at the earliest as of 1 January 2027.
Practical implications
- For (foreign) limited partnerships and CVs that were transparent before 2025, it is crucial to assess in good time whether and how they can remain within the transitional scheme.
- Documentation and evidence of approval by all participants must be carefully recorded, so that the transparent status can be demonstrated in a tax audit.
- Investors and fund structures are well advised to closely follow the ongoing consultations and possible legislative amendments, since the transitional law may be shortened if the FGR definition is amended again.
With this transitional scheme, the legislator seeks to build a bridge between the old practice and the future clarification of the FGR rules, while at the same time preventing unintended tax liability from arising in the intervening years.
9. Corporate income tax: aggregation provision maximum investment amount energy investment deduction
The energy investment deduction (EIA) is a tax scheme that encourages entrepreneurs to invest in energy-saving business assets and sustainable energy. The facility offers a one-off deduction of 40% of the investment amount of qualifying assets, on top of the usual depreciation.
Until now, a maximum of €151 million in qualifying investments per taxpayer per year applied. In practice, however, it turned out that this ceiling could be exceeded in certain situations, for example when a taxpayer made investments both in his own business and as part of a partnership (such as a general partnership, professional partnership, or limited partnership). Because the law did not contain an explicit aggregation provision, the maximum could be applied separately to the different investment flows.
As of 1 January 2026, this loophole in the legislation will be closed by the introduction of an aggregation provision. This means that when applying the EIA, all investments per taxpayer must henceforth be aggregated – regardless of whether they are made in the taxpayer’s own business or via a partnership. The total amount eligible for the EIA can therefore never exceed €151 million per taxpayer per year.
10. Tax Plan 2026: important amendments in the business succession scheme
The business succession scheme (BOR) in the Inheritance Tax Act provides, subject to conditions, an exemption from gift and inheritance tax in the transfer of business assets in the context of business succession. Important amendments were already announced in the Tax Plan 2025, which will be further tightened and clarified as of 1 January 2026.
Making real estate available to one’s own company
When a testator or donor makes a property available to his own company, this property has since 2025 been classified as business assets for the BOR. As a result, in the event of a transfer of both the shares and the property, the BOR can be applied to both components.
Up to and including 2025, however, any debt associated with the property is disregarded in determining the exemption. In practice, this often leads to a relatively high exemption, since the full value of the property falls under the BOR without deduction of debts. As of 1 January 2026, this will change: the BOR will then only apply to the net value of the property (value minus debt). This brings the scheme more in line with the actual asset position.
Relaxations and clarifications
In addition to this tightening, several relaxations will be introduced as of 2026 to make the BOR more workable:
- Ownership requirement and continuation requirement:
- A restructuring (such as merger or demerger) will no longer result in a new ownership period, as long as the shareholder’s economic entitlement in the company does not change.
- The continuation requirement will be relaxed: certain events will no longer automatically lead to the lapse of the BOR.
- Since 1 January 2025, the continuation period has also already been shortened from five to three years.
- Ordinary shareholdings:
- The BOR and the related rollover relief (DSR) will henceforth apply only to ordinary shares representing an interest of at least 5% in the company.
- Preference shares are in principle excluded from the BOR, except when these were issued in the context of a phased business succession and converted from ordinary shares with an original interest of at least 5%.
If you have any questions or comments following the Tax Plan 2026, or if you would like support in assessing the application of the new rules to your specific situation, please contact your regular advisor at NewGround Law.