Dutch Tax Package 2027: key developments for international employers and businesses

The 2027 Tax Package includes a mix of new proposals and measures that had been announced previously. Below, we outline the key developments, with an emphasis on international issues.

INTERNATIONAL MOBILITY

Expat Scheme Starting in 2027, the tax-free allowance under the expat scheme will be reduced from 30% to 27%. This change had already been announced. For employers operating internationally, it remains important to assess in a timely manner what this change means for existing agreements, net salary guarantees, and new international assignments.

Businesses and Entrepreneurs
A number of tax incentives for entrepreneurs are being further scaled back or eliminated. For example, the start-up deduction is being phased out, and various entrepreneurial incentives are being gradually eliminated. The package also includes positive measures for innovative businesses. For example, starting in 2027, the flat-rate allowance under the innovation box for small and medium-sized enterprises (SMEs) will be increased from €25,000 to €100,000. The package also includes measures for, among others, startups and scale-ups, housing cooperatives, the participation exemption, and reorganization relief.

VAT and Excise Taxes
Starting in 2028, the government plans to raise the VAT rate for ornamental plants and hot-air balloon rides from 9% to 21%. In addition, several changes are being proposed regarding excise taxes.

INDIVIDUALS

Box 3
Unfortunately, the package does not yet provide definitive clarity on the future development of Box 3. Further decisions will be made at a later date.

's Deduction for Specific Healthcare Expenses: Under the proposal, the deduction for specific healthcare expenses will be eliminated starting in 2028.

Real Estate
The government plans to reduce the transfer tax rate for homes that are not used as primary residences from 8% to 7% starting in 2027.