Important Business-Related Tax Changes in the Netherlands in 2026

Intercompany Solutions is primarily a firm that helps foreigners to establish a business presence in the Netherlands, but we also offer a wide variety of extra complimentary services. One of these services is taking care of all your tax needs, such as filing tax returns, making sure you adhere to all applicable Dutch tax laws and regulations, and generally helping you out with any tax-related questions. If you own a company in the Netherlands, you generally will have to pay taxes here. There are some conditions that help you to figure out whether you have to pay taxes here, but if your business is officially registered via the Dutch Chamber of Commerce (KvK),this is always the case.

In the next year, there will be some tax changes that will affect all Dutch businesses. It doesn’t matter whether these are owned by residents or foreigners; they apply to everyone with a Dutch business. In this article we will explain in detail what these changes are and how you will be able to comply with these changes. If you ever feel unsure about the best way to deal with taxes or tax changes, we strongly suggest you contact us for professional advice. We can also take care of the entire business incorporation process for you. Our services are tailor-made to suit your needs, so you can rest assured everything is taken care of correctly when you hire us. Want to know more about our services and expertise? Then always feel free to contact us for personal advice and information.

Summary: The most significant change in 2026 is the sharp reduction of the self-employed deduction (zelfstandigenaftrek), which drops from €2,470 to €1,200. While the SME profit exemption (MKB-winstvrijstelling) remains stable at 12.7%, new income tax brackets in Box 1 and updated notional returns in Box 3 will change the net profit for many. Additionally, a new 21% VAT rate replaces the 9% rate for short-term accommodations (hotels/holiday homes), significantly impacting the hospitality sector.

Tax Category	2025 Status	2026 Change
Self-Employed Deduction	€2,470	€1,200 (Reduced by >50%)
SME Profit Exemption	12.7%	12.7% (Remains stable)
Income Tax (Box 1)	2 Brackets	3 Brackets (35.75% / 37.56% / 49.50%)
VAT on Hotels/Lodging	9%	21% (Abolition of reduced rate)
Electric Company Cars	16% / 17%	18% Addition (Bijtelling)

Why 2026 matters for entrepreneurs

Every year, the Dutch government presents its new tax plans on what is named “Prinsjesdag” (which translates loosely to ‘Budget Day’), and for entrepreneurs, these plans can quietly reshape how business works. The 2026 proposals are no different in this regard. They introduce a mix of tax rate adjustments, updated deductions, and new sustainability incentives that will affect nearly every kind of business owner in the Netherlands. Whether you run a one-person enterprise, share a partnership, or manage your own BV, it’s worth knowing what’s coming so you can plan ahead instead of being surprised later. For example, in 2026, the Dutch government continues its effort to make the tax system “fairer and greener.” 

That means a few different things. Small business deductions will keep shrinking, while environmental and energy-related measures are becoming more prominent. At the same time, income tax brackets and corporate rules are being refined to reflect inflation and the country’s ongoing transition to a more sustainable economy. In practice, these shifts could slightly raise the tax pressure on self-employed professionals while at the same time offering new opportunities for entrepreneurs who invest in innovation or cleaner technology. Understanding these changes early helps you make smart decisions, like when to invest, how to structure your business, or which deductions you can still claim. The Dutch system always rewards preparation. So, let’s take a closer look at what exactly will change in 2026 and how you can keep your business future-proof in this new tax landscape.

A short overview of the Dutch tax landscape for entrepreneurs

Before diving into the 2026 updates, it helps to understand how the Dutch tax system works for business owners in general. In the Netherlands, how you pay taxes depends mainly on your business structure. If you’re self-employed or run a partnership (like a VOF or maatschap), your business income is taxed under Box 1, which is the same category as regular wages when you are an employee. You pay income tax over your profits, but you can lower that amount with several entrepreneurial deductions, such as the ‘zelfstandigenaftrek’ (self-employed deduction) or the ‘MKB-winstvrijstelling’ (SME profit exemption). 

If you own a BV (private limited company), though, things look a bit different. The BV itself pays corporate income tax on its profits. In that case, when you as a director or shareholder take out dividends, those fall under Box 2, which covers income from substantial interest. This double-layered system can sound complicated, but it actually provides flexibility. Many entrepreneurs choose a BV once their profits grow to benefit from lower business tax rates and better protection of personal assets. Lastly, there’s Box 3, which covers income from savings and investments. Even though it’s not business income, it can influence entrepreneurs who hold assets or investments in their own name. Each year, the Dutch government reviews all these “boxes” as part of its official tax plan, to keep the system balanced and fair. With that foundation in place, let’s look at what’s changing in 2026, starting with the new income tax brackets and rates that will affect self-employed professionals the most.

Income tax (Box 1): new brackets and rates for 2026

For entrepreneurs that are being taxed under Box 1, the year 2026 will bring a few important adjustments that directly will affect your actual income. The Dutch tax system for individuals and self-employed professionals basically uses two brackets: a lower rate for the first portion of your income and a higher rate for any amount above that. In 2026, the lower bracket is expected to rise slightly to reflect inflation, while the tax percentage itself may also be adjusted to balance things like public spending and social contributions. Right now, the lower rate is 36.97% and the higher rate is 49.5%, but these values are likely to change a little bit.  The government's major goal is to make sure that lower- and middle-income people can still afford things while making sure that high-income people pay their fair share to the community.  For entrepreneurs who work for themselves, this could entail a slight adjustment in how much they pay in taxes each month.  Especially when you add in minor deductions like the self-employed deduction.

It’s important to remember that Box 1 doesn’t just tax income from your business, because it also covers things like wages, pensions, and certain benefits. If you have more than one source of income, the new rates could have a bigger effect on your overall tax rate than you thought. In actual life, many business owners might not see much of a difference in the total amount of taxes they pay, but the real effect will depend on how much money you make and which deductions you can still use. Keeping track of your income and using tax simulation tools or advice from your tax professional are the best ways to avoid surprises when the 2026 rates go into force.

Entrepreneurial deductions: self-employed deduction and SME profit exemption

For many self-employed professionals in the Netherlands, the biggest yearly question isn’t just how much tax they owe, but how much they can still deduct. In 2026, the two most important deductions, namely the self-employed deduction and the SME profit exemption (MKB-winstvrijstelling), will continue to evolve, and not necessarily in a way that makes life easier for small(er) entrepreneurs. The self-employed deduction, which was once a generous amount, has been steadily reduced over the past few years. The government argues that the gap between employees and entrepreneurs should be narrowed to make the system fairer. By 2026, this deduction is expected to decrease again, meaning that self-employed people will be able to subtract less from their taxable income than before. That effectively raises their total tax bill, even if the tax rates themselves don’t change much.

The SME profit exemption, however, remains stable at 14% of the taxable profit. This means that after calculating your total profit (and applying the smaller self-employed deduction), 14% of what’s left can still be exempted from taxation. While this helps to lessen the blow a bit, it won’t fully offset the reduction of the self-employed deduction, unfortunately. For small business owners and freelancers, it’s therefore crucial to plan ahead. If your income is on the lower end, these changes could noticeably reduce your net result. Keeping your records clean, exploring additional deductions like investment or energy-related ones, and possibly rethinking your legal structure can all help balance things out.

Box 2 and Box 3 changes: for BV owners and investors

Entrepreneurs who operate via a BV (which is the equivalent of a private limited liability company) or hold shares in one should pay close attention to the Box 2 updates in 2026. Box 2 covers income from what the Dutch tax system calls a substantial interest: that’s when you own at least 5% of the shares in a company. In 2024, the government introduced two tax brackets in Box 2: a lower rate for moderate dividend withdrawals and a higher one for larger payouts. This tiered system is expected to stay, but the exact thresholds and rates may change slightly in 2026 to reflect inflation and also encourage reinvestment in businesses rather than high personal withdrawals.

For many BV owners, this means that strategic dividend planning will remain essential. For example, taking out too much in one year could push you into the higher Box 2 rate, while spacing payments or keeping profits inside the company may prove more efficient. Accountants often recommend forecasting at least a year ahead to decide when to take out dividends for yourself or leave the funds for reinvestment. Then there’s Box 3, which deals with tax on savings and investments. This system has been under heavy revision since Dutch courts ruled that the previous ‘fictional return’ method was unfair. The government is therefore transitioning toward a more realistic tax model based on actual returns. By 2026, new thresholds and calculation methods should make this system fairer for small savers but at the same time potentially stricter for investors with high-value portfolios. Together, these adjustments clearly show the government’s effort to align business taxation with real-world profits, encouraging long-term growth whilst also tightening loopholes for passive wealth accumulation.

Specific measures for small businesses: sole proprietorships, VOFs, and CVs

Small businesses are essentially the backbone of the Dutch economy. The general tax plans for 2026 include certain changes that will make deductions harder to achieve, but they also include some targeted upgrades and positive opportunities and chances for smaller enterprises like sole proprietorships, VOFs (general partnerships), and CVs (limited partnerships).  The goal of these improvements is to make things like management easier, support sustainability, and encourage small contributions.  One big change is the small-scale investment allowance (kleinschaligheidsinvesteringsaftrek, or KIA).  This deduction is helpful for business owners who buy things like tools, equipment, or corporate cars.  The limits for this allowance will likely change to keep up with inflation. But this does mean that if your investments stay somewhat in the middle area, you can still get the benefit.  But to stop bigger corporations from abusing this specific deduction, the upper limit for the whole deduction may be lowered.

Digitalization and sustainability are also very significant.  The Dutch government continuously encourages people and entrepreneurs to make eco-friendly improvements and use energy more efficiently.  Small business owners that buy new, more energy-efficient equipment or invest in greener technologies may still be able to use the EIA (Energy Investment Deduction) or MIA (Environmental Investment Deduction) programs, which are both being updated and expanded as we speak. Furthermore, the plans for 2026 also include various ways to ease the burden on administrators. There is still a drive for small businesses to use digital invoicing, make VAT reporting easier, and get clearer instructions from the Dutch tax authorities (Belastingdienst).  Not all of these improvements have to do with money, but they are meant to make things run more smoothly and predictably for business owners who don't have a full-time accountant always available.

Sustainability and environmental-related tax changes

As we already mentioned briefly above, one of the strongest themes in recent Dutch (tax) plans is sustainability, and the updates scheduled for 2026 definitely continue in that direction. The Dutch government wants to actively support businesses that choose cleaner, greener, and more energy-efficient options while simultaneously slowly discouraging choices that are harmful to the environment. This means that entrepreneurs may benefit from some financial rewards for investing in things like sustainability and, at the same time, higher costs for activities or products that produce any kind of (excessive) pollution or waste. So, even if you are not a green company by nature, these changes can affect your business planning and investments. A key part of this system is the continuation and improvement of environmental and energy-focused investment deductions, such as the Energy Investment Deduction (EIA) and the Environmental Investment Deduction (MIA). 

These schemes allow you to deduct a percentage of qualifying sustainable investments from your taxable profit. Examples might include factors such as energy-efficient machines, special insulation, LED-based industrial lighting, or even environmentally friendly vehicles and production tools. The goal is rather simple. If you help to reduce your business’s long-term energy use or CO₂ output, the government will help you to reduce your tax bill. Next to that, there may be higher levies or reduced tax benefits on things that create extra waste or environmental pressure, such as certain types of packaging, heavy fuel use, or products that are difficult to recycle due to their nature. For some entrepreneurs this can feel like an extra cost, but for others it may open the door to new business opportunities, such as offering greener products or services. The main lesson here is that sustainability is no longer a luxury, but it is becoming part of the (financial) core of doing business in the Netherlands.

Implementation timeline: when and how changes take effect

Understanding when all these tax changes will actually become active is just as important as knowing what they are and how they will affect you and your business. In the Netherlands, almost all new tax measures begin their journey during Prinsjesdag, which takes place every year on the third Tuesday of September. On that day, the government presents its new tax plan, which contains all the proposed changes for the coming year and the reasons for these changes. However, nothing becomes final right away, as it must first be debated and approved by the Dutch government. This means that after Prinsjesdag, the plans go through several discussion rounds in the Dutch parliament, where they can be adjusted, delayed, or even rejected. Only after approval by both chambers of the Dutch parliament do the changes become official. 

Once approved, most tax measures generally take effect on January 1st of the next year. Some rules can also start later in the year or include transition periods to help entrepreneurs adjust without sudden financial shocks or issues. For example, certain investment deductions, levies, or digitalization requirements might be introduced gradually or only apply to new contracts instead of existing arrangements. This means that keeping track of each update, instead of assuming everything changes at once, can make a big difference for your company and the way you do business. Because some parts of the 2026 plan are still proposals, there is always a chance that final details will shift later on. The smartest approach is to stay informed throughout the year, not just in December when your accountant or tax advisor sends you reminders. Many entrepreneurs use this time to review their business structure, investment planning, and tax forecasts so they can act before the new rules actually take effect rather than be surprised afterwards.

How to prepare for the 2026 tax changes?

As an entrepreneur, knowing about upcoming tax changes is helpful, but the real advantage comes from acting early on and strategically. One of the first steps to take is to review your expected income and profit levels for the coming years. If you notice your profit is growing, it might be time to talk to a tax advisor about whether your current business structure (for example, a sole proprietorship versus a BV) is still the most beneficial for you. Generally, a Dutch BV becomes the best choice when you make over € 100,000 in profits. A small change in legal form at the right moment can sometimes save you thousands of euros over several years due to the different tax laws that apply to each Dutch business type. Next, consider timing your investments. For example, if you plan to buy equipment, machines, or sustainable products or tools, check first whether it makes more sense to invest before or after the 2026 rules take effect. 

The same strategic approach applies to dividend payments if you have a BV. Keep in mind that spreading outor delaying withdrawals might offer you a financial advantage. Also, make full use of existing deductions while they are still available at current levels, especially if the self-employed deduction continues to shrink like we mentioned before. It’s also considered wise to improve your bookkeeping and forecasting habits, even if you dislike administration (which most entrepreneurs do). Using easy accounting software or working with a tax advisor or bookkeeper can help you track your situation on a month-by-month basis. This way, you don’t get surprised by a tax bill that is suddenly much larger than expected. And as a final suggestion, keep in mind to stay informed through reliable sources such as official government websites, the Dutch Chamber of Commerce (KvK) or professional advisors like Intercompany Solutions. Learning a little bit in advance is always cheaper than fixing a mistake later.

Do you feel overwhelmed by Dutch tax laws? Intercompany Solutions can assist you

Tax changes can sometimes feel overwhelming, especially when you are focused on running your business and managing day-to-day tasks. The Dutch tax system is known for offering great opportunities but also for its very detailed and often also complicated rules that can shift from year to year. The adjustments planned for 2026 show a somewhat clear direction, like more focus on fairness, sustainability, and long-term stability, whilst also encouraging entrepreneurs to plan ahead instead of reacting at the last minute. Whether you are just starting out, planning to expand, or already running a successful company, staying informed helps you protect your profits and avoid unnecessary stress. The good news is that you don’t have to figure everything out alone. 

Our firm is not only specialized in establishing Dutch companies for (international) entrepreneurs, but we also offer extensive tax advice and easy guidance with annual and quarterly tax returns. This means you can focus on your business while we help you understand what rules apply to you, which deductions you can still use, and how to structure your finances in a smart and future-proof way. We translate complex rules into clear, simple steps so you can make good decisions without feeling lost in official rules, laws, and documents. So, if you're thinking about starting a business in the Netherlands, or if you already have one and want to prepare for the 2026 tax changes in a calm and organized way, feel free to contact us. Your success matters, and we’re here to support it every step of the way.

The many services we can offer you

Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. Our clients range from small one-person startups to multinational corporations and everything in between. Our processes are aimed at foreign entrepreneurs, and, as such, we know the most practical ways to assist with your company registration. We can assist with the full package of company registration in the Netherlands, either ourselves or via trusted and professional partners we work closely with:

• Company establishment in the Netherlands
• Application for a VAT or EORI number
• Application for foreign VAT numbers
• Startup assistance
• Accounting services
• Administrative services
• Secretarial services
• Legal assistance
• Payroll administration
• Tax services
• OSS returns
• Intra-Community transactions declarations (ICP)
• Acquiring an Article 23 license
• Obtaining E-herkenning for your company
• Acquiring or closing G-accounts
• Transfer of shares
• Dutch company closures
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services.

How Intercompany Solutions can assist you with all tax-related matters

Next to Dutch company establishment, you can see that we also offer an extensive amount of extra services that help keep your business running, compliant, and successful. Especially foreign entrepreneurs can have difficulties with the understanding of Dutch tax laws and regulations, but it’s very important that you know them and adhere to them. If you don’t, you risk many problems, such as fines, and sometimes even incarceration. But to get into that position, you will really have to make huge mistakes. And that’s where we come in: we help you to avoid all pitfalls and make sure your tax returns are always handled professionally and on time. If you have any questions about who we are and what we do, please feel free to contact us anytime. We will happily assist you with all questions you might have.