Tax Plan 2026 — Proposals affecting the real estate market

Corporate income tax rates

The corporate income tax rates will remain unchanged for 2026 at 19% for profits up to EUR 200,000 and 25.8% for profits above EUR 200,000.

Earnings‑stripping rule

The earnings‑stripping rule remains unchanged. For 2026 the EUR 1 million threshold continues to apply and the current limit of 24.5% of tax EBITDA will remain unchanged.

Earlier this year the State Secretary announced that three possible adjustments to the earnings‑stripping rule will be further examined, namely:

1. Introducing a group concept for applying the EUR 1 million threshold.
2. Making the EUR 1 million threshold dependent on the extent of financing by intra‑group loans.
3. A stricter specific interest deduction limitation in respect of intra‑group loans.

The State Secretary has indicated that the outcomes will be sent to the House of Representatives no later than the end of 2025. It is therefore not expected that any changes will take effect from 2026.

Transitional rules — law on fiscal qualification of legal forms

As of 1 January 2025 the Dutch qualification rules for legal forms was amended. The new legislation has produced a number of issues, including the requalification of (foreign) legal entities as mutual fund (‘fonds voor gemene rekening’ or fgr). The State Secretary previously announced an intention to resolve these issues and possibly publish a bill for consultation in autumn 2025. Any amendment is unlikely to take effect before 1 January 2027 at the earliest.

Pending that legislation, and to prevent short‑term tax liability (between 1 January 2025 and 1 January 2027), transitional rules have been announced to provide clarity on the tax treatment of an entity in order for its participants to file their personal income tax or corporate income tax returns.

The transitional law applies to:

• entities established in the Netherlands that, as of 1 January 2025, are liable to Dutch corporate income tax as they qualify as an fgr, and
• entities not established in the Netherlands but established according to the law of another state, that are comparable to an fgr and receive Dutch source income.

Further conditions are that:

• prior to 1 January 2025, the entity was not liable for Dutch corporate income tax as a domestic or foreign taxpayer under the Corporate Income Tax Act; and
• in case prior to 1 January 2025, the entity did not have the intention to meet the conditions of a redemption fund, the participants must agree to opt for these new transitional rules no later than 28 February 2026.

An entity can indicate its choice to apply the transitional rules to the Dutch Tax Authorities by not registering itself as an fgr.

Under the draft bill the transitional measure applies only to entities (including those established under foreign law) that become liable for Dutch corporate income tax. The transitional rules do not appear to apply to entities (including those established under foreign law) that do not receive Dutch source income and therefore do not become liable for Dutch corporate income tax. In respect of this latter group, the issues created by the new law on fiscal qualification of legal forms (for example under ATAD2 (hybrid mismatches) and for the purpose of Dutch Conditional Withholding Tax) are not resolved by these transitional rules.

Reduction of real estate transfer tax (RETT) rate on residential property

The RETT rate for acquisitions of residential property by (among others) investors will be reduced from 10.4% to 8% with effect from 1 January 2026. For non‑residential property acquired by this group of buyers, the general rate of 10.4% will remain applicable. The cabinet intends this measure to stimulate investment in the Dutch housing market. Note that an amendment has recently been tabled to reduce the RETT rate on residential property further to 6%. A vote on that amendment is still pending.

The 2% rate will continue to apply to acquisitions of homes intended for owner‑occupation. The so‑called first‑time buyers’ exemption for acquirers aged 18–35 also remains in force.

Increase in VAT rate hotels and short stay accommodations

The VAT rate on hotels and short stay, as included in Tax Plan 2025, will be increased from 9% to 21% with effect from 1 January 2026. A motion to reverse this increase was not adopted. Another motion to rescind the change has been postponed (it has not yet been voted on) and an amendment will be tabled during the parliamentary consideration of Tax Plan 2026, arguing that research shows the anticipated revenue is far from being realized and that the increase has negative effects, especially in border regions. There is a transition rule aiming to apply the higher VAT rate to overnight stays in 2026 even where the reservation and payment took place in 2025.

VAT adjustments for property investment services

From 2026 the VAT revision rules will be extended to investment services in respect of immovable property. A threshold of EUR 30,000 per service will apply in order to strike a balance between the intended effect of the measure and administrative burdens. A five‑year revision period has been chosen. The legislator aims with this measure to counter tax‑saving structures involving short‑term taxable leasing.