Change in corporate tax

The 2025 corporate tax rates will remain the same as for 2024:

Corporate tax 2025	2026
First bracket up to € 200.000	19%
Second bracket from € 200.000	25,8%

Other tax tips and changes

General

• Do you expect to pay tax for the 2025 or 2026 tax year? Requesting a provisional assessment in good time, will save you interest. Interest is calculated if the assessment is imposed later than 6 months after the end of the calendar year. The interest is 6.5% currently. To ensure that the assessment for 2025 is imposed in time, we recommend that you apply for it before 1 April 2026. The assessment for the 2025 tax year must be paid at once. There is the possibility of paying the assessment for the tax year 2026 in instalments during the year. Do you have questions about this? We are happy to assist you in applying for a provisional assessment.
• If you expect to receive a refund for 2020, an Income Tax return for this year must be submitted before December 31, 2025. In 2025, the 5-year term for submitting this declaration will expire.
• If you have not yet used the annual gift exemptions in 2025, you can still do so until 31 December 2025. The general exemption for gifts to your children in 2025 is €6,713 per child. This exemption can, under certain conditions, be increased once to €32,195 or €67,064 if the gift is used for an expensive education. For all other recipients, the exemption is €2,690.

Deductions

• If possible, bundle deductible expenses such as medical expenses and donations in one specific year. For example, a deduction is achieved earlier and the threshold is only deducted once from the expenses. For donations, the threshold disappears completely if you commit to donating to a charitable institution for 5 years, which has to be agreed on in writing.
• In 2025, deductible items may be taken at a maximum of the lower rate of 37,48% even if your income falls in the highest bracket.

Box 3

• As mentioned in the introduction, if you were planning on converting (low-yielding) assets (e.g. shares, crypto, real estate) to bank accounts, this could save a substantial amount of box 3 tax for 2026 if this is done before the end of the year. All other assets apart from bank accounts are taxed at the highest rate, while bank accounts are taxed at a lower rate. Receivables and loaned amounts are also taxed at the highest rate, therefore it would save box 3 tax for 2026 if the amounts are received or paid back into your bank account before the end of the year. This is only applicable if, in due course, you choose for taxation on fictitious box 3 income.
• The green investment exemption in box 3 will be scaled back further. From 1 January 2025, the green investments exemption is reduced to € 26.312 (2026: € 26.715). From 1 January 2027, the exemption will be lowered to € 200 and from 1 January 2028 it will be abolished altogether.
• If you wish to make use of the Declaration of actual return for the year 2020, we recommend doing so before 31 December 2025, as the possibility lapses after 5 years.
• There are no easy tax-saving opportunities for Box 3 properties. Filing an objection against the municipal WOZ assessment is one option, for which careful planning is important, also taking into account the return on other assets. Taking out loans on a Box 3 property is another possibility, particularly if this keeps the equity below the tax-free allowance. Of course, interest will apply on these loans; financing through a private company (BV) may therefore be more advantageous. These options, however, depend on specific circumstances and require professional tax guidance. Foreign properties are exempt from Box 3 taxation in the Netherlands, but they may still be taxable abroad.

Home owners

• The general transfer tax/stamp duty rate will be lowered from 10.4% in 2025 to 8% in 2026. This rate is valid for all properties except those to which the reduced rate of 2% or the starter exemption applies. For a first residence property (in which you will live yourself) the rate is 2% under certain conditions.
• House buyers between the age of 18 and 35 can benefit from a one-off transfer tax/stamp duty exemption if they meet certain requirements. The limit of this starter exemption (house value limit) will be raised from € 525,000 to € 555,000 in 2026. If the purchase price is between these values, waiting with the house purchase until 2026 could potentially save thousands of euros in transfer tax.

Declaration of actual return

Taxpayers whose actual return is lower than the fictitious return may now choose to report their actual return to the Tax Office by submitting a ‘declaration of actual return’. The actual return must be substantiated and specified for each individual asset category. Preparing this declaration requires an extensive analysis of your assets, as both the income received and the realised and unrealised capital gains for each asset category must be calculated.

For certain categories of assets, fictitious assumptions still apply — for example, the WOZ value and the vacancy value (‘leegwaarderatio’) for rented properties. The precise application of the rules has not yet been fully clarified in several respects.

Application per asset category

For each category, different rules apply:

• Bank and savings deposits: Here, the actual interest income you have received is considered. This requires an overview of all accounts and corresponding statements. If the account is in foreign currency, transactions during the year must be converted into euros in order to determine the foreign exchange result.
• Investments (shares, bonds, investment funds, etc.): Here, both dividend and other income and realized and unrealized capital gains (or losses) must be determined. This means that all purchases and sales of securities must be recorded, including transaction dates and values. If the account is in foreign currency, transactions during the year must be converted into euros in order to determine the foreign exchange result.
• Real estate (excluding your own home): For rented property we must calculate rental income as well as any (realized and unrealized) value changes. Specific valuation rules also apply here, such as the vacancy value ratio (leegwaarderatio) and WOZ-value (official property valuation). In case of changes during the year, such as purchase or sale, changes in value are calculated on a proportionate basis.
• Receivables and debts: Interest income or expenses must be recorded here, as well as any repayments or value changes. If foreign currency is involved, the foreign exchange result must also be determined.
• Other assets: This includes, for example, cash, crypto assets, or valuable possessions. Correct valuations and income must also be determined for these in accordance with the applicable regulations.

These calculations are labour-intensive and require careful substantiation with documentation and supporting evidence. Bank statements, annual statements, securities reports, WOZ assessments, and other relevant documents will therefore need to be collected and included in the declaration.

For which years

The Declaration of actual return may be submitted for all years for which the tax assessment had not become final and irrevocable at the time of the Supreme Court’s ruling of 24 December 2021. In addition, it applies to years in which an objection was filed against the final assessment and for which a request for reassessment was submitted within the five-year period. Since it is possible to choose between the fictitious return and the actual return each calendar year again, there are often opportunities to optimise the tax burden.

In practice

If the WOZ value of a second home or holiday home has increased substantially, a reduction will in most cases not be possible. This also highlights the importance of the WOZ value: if it has been set on the high side, this is an additional reason to file an objection against the annual municipal assessment in which the WOZ value is determined. The same applies to an investment portfolio: in the case of a significant increase in asset value, the fictitious return will likely be more favourable, and vice versa. Naturally, the final outcome depends on the complete picture per year including other asset categories involved.

Update box 3 developments

For years, legal proceedings have taken place over the fictitious method of taxing Box 3 assets. The system assumed a fictitious return that was considerably higher than the interest actually earned on savings accounts. In December 2021, however, the Dutch Supreme Court ruled that the fictitious calculation for Box 3 in 2017 and 2018 imposed a disproportionate burden and therefore violated the human rights convention. According to the Supreme Court, taxpayers who lodged an objection must be granted legal restitution.

On 6 June 2024, the Supreme Court ruled that the renewed fictitious levy still violates the human rights convention. As a result, the Dutch Tax Authority has introduced a new scheme that more closely estimates actual returns. Because determining the actual return is often complex in practice, the new system is intricate and still contains fictitious elements. If the outcome of this method is more favourable than that of the fictitious system, taxpayers may opt for this approach. For a detailed explanation of this system, see the section Declaration of actual return.

This scheme anticipates a completely new Box 3 tax based on actual returns. Its introduction is currently expected in 2028.

Changes Box 3 – Benefit from savings and investments

As in 2025, the system based on a fictitious return will in principle also apply in 2026. Under this system, the categories of savings, other assets, and debts each have their own fictitious return percentage. The tax-free allowance will be increased from €57,000 in 2025 to €59,357 in 2026 – for tax partners, the allowance applies per partner. Based on the asset mix, an average return is calculated over the total assets.

The fictitious return for the category ‘other assets’ – which includes items such as shares, bonds, and real estate – will be slightly increased in 2026 to 6%. The tax rate on the fictitious return in Box 3 was 36% in 2025, and this rate will remain unchanged in 2026.

Below is an overview of the box 3 tax under the new system for 2025 and 2026:

Box 3 tax	2025	2026
Asset category	Fictitious income	Fictitious income
Bank accounts	1,44%*	1,5%*
Debts	2,62%*	2,5%*
Other assets	5,88%	6%

*Exact percentage will be announced in the beginning of 2026 and 2027

Update box 3 developments

For years, legal proceedings have taken place over the fictitious method of taxing Box 3 assets. The system assumed a fictitious return that was considerably higher than the interest actually earned on savings accounts. In December 2021, however, the Dutch Supreme Court ruled that the fictitious calculation for Box 3 in 2017 and 2018 imposed a disproportionate burden and therefore violated the human rights convention. According to the Supreme Court, taxpayers who lodged an objection must be granted legal restitution.

On 6 June 2024, the Supreme Court ruled that the renewed fictitious levy still violates the human rights convention. As a result, the Dutch Tax Authority has introduced a new scheme that more closely estimates actual returns. Because determining the actual return is often complex in practice, the new system is intricate and still contains fictitious elements. If the outcome of this method is more favourable than that of the fictitious system, taxpayers may opt for this approach. For a detailed explanation of this system, see the section Declaration of actual return.

This scheme anticipates a completely new Box 3 tax based on actual returns. Its introduction is currently expected in 2028.

Changes Box 1 Tax – Income from work and first-residence property

In 2026, there will be no major changes to income tax in Box 1. The below chart gives an overview of Box 1 income tax in 2025 and 2026:

Income Tax – AOW not reached	2025	Income Tax – AOW not reached	2026
First bracket up to € 38.441	35,82%	First bracket up to € 38.441	35,82%
Second bracket € 38.441 – € 76.817	37,48%	Second bracket from € 38.441 – € 76.816	37,48%
Third bracket from € 76.817	49,50%	Third bracket from € 78.426	49,50%

For taxpayers who have reached the state pension age the following rates and brackets apply for 2024 and 2025:

Income Tax – AOW reached	2025	Income Tax – AOW reached	2026
First bracket up to  € 38.441	17,92%	First bracket up to € 38.883	17,80%
Second bracket:  € 38.441 – € 76.817	37,48%	Second bracket:  € 38.883 – € 78.426	37,56%
Third bracket from € 76.817	49,50%	Third bracket from € 78.426	49,50%

*other brackets apply to people born before 1 January 1946. For box 2 rates, please
refer to the business section of the newsletter.

Tax Plan Summary

The current government has presented the Tax Plan for 2026. While there are no major structural changes, several smaller measures may nonetheless have noticeable effects in specific situations.

For example, the transfer tax on second homes (Box 3 properties) will be reduced from 10.4% to 8%. This provides some benefit for private investors. On the other hand, from 2027 onwards, a substantial additional levy will be introduced for non-electric company cars made available to employees. This measure will represent a significant cost for employers, especially as it is added on top of the existing taxable private use tax.

The Box 3 tax continues to generate debate. Following multiple court rulings in recent years, the Dutch Tax Authority had to develop an alternative to the fictitious return. With the introduction of the ‘declaration of actual return’ form, a step seems to have been taken toward a more reality-based taxation system. However, this system is not yet fully based on actual returns: costs are not deductible, and some valuations remain fictitious, such as the mandatory use of the WOZ value (property valuation).

Since value increases are taken into account, the scheme can be particularly favourable in cases of declining values, such as a lower WOZ value or poor stock market performance. Increases, however, often work to taxpayers’ disadvantage. In certain situations, filing an appeal against the WOZ assessment can therefore be worthwhile, though timing is crucial. The underlying calculation is complex and requires a careful assessment of different asset categories, taking numerous factors into account. Of course, we are happy to assist you with this. Are you expecting a refund for 2020? Please note that a request for a tax reassessment must be submitted by 31 December 2025 due to the expiration of the five-year term.

In addition to the collective appeal procedure for the Box 3 tax, a similar procedure exists for the current tax interest system. If a large amount of interest is charged on an assessment, it is possible to join this procedure by submitting a timely objection.

Find more information about these topics in the newsletter.

The 2025 corporate tax rates will remain the same as for 2024:

Corporate tax 2025	2026
First bracket up to € 200.000	19%
Second bracket from € 200.000	25,8%

Of course, you don’t want to miss out on any tax benefits in the Netherlands that you are entitled to. In that case, you need to file a tax return and make sure this is done correctly. You can file a tax return for 2022 (from March 2023), 2021, and previous years, till five years back. Take a step in the right direction and contact us to file your tax return. No complicated online forms to be filled in, but personal and proactive service. Our tax consultants are passionate about seeking ways to optimize your tax return in the Netherlands.

How do you know if you need to file a tax return?

Even if you have not received an invitation to submit a tax return in the Netherlands, it is important to have your tax situation checked by a specialized expat tax advisor. You can contact us to check if it would be worthwhile for you to file a tax return. We will ask you the right questions to get the full picture of your tax situation. This way we can check all your tax-saving possibilities and you won’t miss any tax refund opportunities while filing your Dutch tax return. If you have your tax return automatically done by your employer in the Netherlands or a firm hired by them you can also come to us for a second opinion.

When is the deadline?

We will be pleased to look after the preparation of your tax return. The deadline is May 1st, but we will request an extension till May 1st next year for submitting your tax return. since we receive many tax return requests during this period. We will process the tax returns in the order in which they are received as much as possible. Do you have a specific reason why the tax return must be filed quicker? We will take this into account when scheduling the tax return. If you include information about possible deductible expenses and other relevant
changes in your situation we can optimize your tax return as much as possible.

Why use a tax advisor?

Our advisors understand that you do not wish to pay more tax than necessary and aim for a maximum tax benefit in your situation. Equally important, we also want to make sure that you are fully compliant. Some tax obligations are easily overlooked since you may not be aware of your responsibilities and the impact of certain actions on your taxes. While paying less tax may seem nice short term, unpaid tax can lead to a high tax bill with fines – up to 300% –  and interest in the future. It is therefore important that you inform us as well as possible about your situation, questions, and challenges; you remain responsible for a correct declaration. With our long-term focus, we can advise you proactively as your situation changes. Filing your own tax return or even worse making use of a budget tax return service may seem profitable at first, but there is a good chance that you pay the bill for this later.

Tax return in the Netherlands: which deductions

J.C. Suurmond & zn. Tax consultants are experts in expat tax matters and will make sure the optimum tax status is applied for. We will check whether all tax deductions, credits and allowances, applicable to your situation, are made use of. Regular Dutch tax return deductions are for example:

• mortgage interest deduction
• educational costs (also of your children or partner),
• charitable giving
• alimony
• non-compensated health costs

In a proactive way you will be advised of your personal tax saving possibilities, which will be processed in the income tax return. As we provide a complete tax return service, we will also check the tax assessments that follow and appeal if needed to make sure your tax affairs are settled correctly.

Which tax form should you file?

The regular tax form is a P-form. In immigration or emigration situations however, an  extensive M-form has to be submitted. This is a more extensive Dutch tax return form and has to be submitted on paper. In a situation where you only lived in the Netherlands very short or merely worked in the Netherlands, a C-form for non-domestic taxation may apply. The M-form and C-form often give opportunity for refunds. With help of our direct line to the inspectors at the tax inspectorate for expats in Heerlen, we can check what Dutch tax return needs to be submitted in your situation.
We also take care of other tax forms, for example the request for a provisional refund for mortgage relief, which results in a monthly refund instead of a lump sum after the end of the year.

Examples of tax return situations

Are you considering moving (back) to the Netherlands? Most likely you have several scenarios in mind and you are wondering what the tax impact and benefits of each scenario would be. We would be happy to support you with tax advice. If you have already moved, we can file your M-form correctly and tax-efficient.

How to optimize your tax situation

Especially if you own (a) house(s) and have assets, a business, or other interests abroad, moving to the Netherlands is something to be carefully prepared. Moving to the Netherlands can give you several Dutch tax refund opportunities. If you seek immigration tax advice in an early stage, you can often still optimize the situation tax-wise. For example, you can organize beforehand that you are entitled to the 30% ruling by setting up a BV or being hired by a Dutch company. This would mean that 30% of your salary is tax-free and you do not have to declare your worldwide assets in your Dutch tax return (for 5 years). The timing of registration or buying a house is also very important.

M form

For the year you migrated to or from the Netherlands, you will have to file an M form which gives you several extra refund opportunities. Make sure your entire situation is carefully considered by a tax advisor to prevent costly mistakes or missed refunds.

Moving to the Netherlands example situations