Netherlands Budget 2026: Higher taxes on savings and relief for first-time buyers
The Dutch interim government has unveiled its financial plans for 2026, outlining a series of tax changes and subsidies that will affect homeowners, investors, entrepreneurs, and families. While these measures aim to stimulate certain sectors of the economy, some of the measures mean higher costs for individuals, especially in the area of savings and investments.
One of the biggest changes will be in Box 3, where taxes are imposed on savings and assets. The tax-free threshold will decrease from €57,684 to €51,396, bringing more people into the capital tax base. The assumed return rate on investments will also increase, with taxpayers able to use the tegenbewijsregeling (counter-evidence mechanism) to prove that their actual returns are lower. Financial partners can combine their assets and share the tax-free threshold to mitigate the impact.
Changes in the housing market are also expected. First-time buyers under the age of 35 will continue to enjoy a 0% tax exemption on homes valued up to €555,000 in 2026. For second homes, the transfer tax may decrease from 10.4% to 8%, in a move aimed at encouraging investment in rental properties. The mortgage interest deduction will remain in place, with a maximum of 37.56%, while the theoretical rental value tax (eigenwoningforfait) will remain at 0.35% for most homes.
Entrepreneurs and freelancers will face reductions in tax benefits. The self-employed deduction will decrease to €1,200 in 2026 and to €900 by 2027, while the exemption for small business profits will be reduced to 12.7%. Some other deductions like stakingsaftrek and meewerkaftrek will be gradually phased out by 2030. Meanwhile, some social security benefits such as health care allowance and housing allowance will rise slightly, with the maximum rent eligible for housing allowance being removed and the potential age limit reduced from 23 to 21 years.
Most families will see slight changes in income tax. The first tax bracket will decrease slightly to 35.7%, while the second bracket will increase to 37.56%. However, not all tax brackets will be adjusted for inflation, meaning some taxpayers may move to higher brackets more quickly. The famous 30% ruling for expatriates is still in place, but it will be reduced starting in 2027.
Other measures include restrictions on retirement savings for high-income earners, a deferral of the one-time withdrawal option by 10% upon retirement, and an extension of fuel tax reductions until 2027. Additionally, aviation taxes will increase starting in 2027, with price hikes for medium and long-haul flights, while electric cars will become relatively cheaper due to changes in the car purchase tax (BPM).
All of these proposals still need the approval of both houses of parliament before they can be implemented. With the general elections scheduled for October 29, it is still uncertain which of these measures will come into effect. Residents of the Netherlands are advised to closely follow developments and plan financially with the help of specialized advisors.