New rules and regulations from 1 January 2026

Taxes

Income tax: brackets and rates are changing*

The rates in Box 1 of income tax will change in 2026 2026: 

Do you receive a state pension (AOW)? Then different rates apply.

Calculate your income tax for 2026 and check whether you will be better or worse off.

Private business ownership allowance further reduced

The private business ownership allowance (zelfstandigenaftrek) will be further reduced in 2026. In 2025, the deduction was €2,470. In 2026, it will be less than half that, €1,200. You can deduct this amount from your profits, which means you pay less tax.

In the coming years, the private business ownership allowance will be further reduced. You are entitled to this allowance if you work at least 1,225 hours per year in your business.

Taxes on overnight stays to increase

The VAT rate on overnight accommodation will increase from 9% to 21%. This applies to hotels, holiday homes, bed and breakfasts (B&Bs), guesthouses, hostels, furnished mobile homes, and accommodation rented out via platforms.

The change will take effect on 1 January 2026. The new rate will also apply if someone books this year for an overnight stay in 2026, even if they pay for it in 2025. Please note: the VAT rate for camping will remain at 9%.

Property transfer tax on housing investments reduced *

Are you buying a residential property as an investment? To rent out or as a holiday home? Then from 2026, you will pay less property transfer tax: 8% instead of 10.4%. The government expects this to encourage people to buy more properties to let. This will increase the number of properties available.

Tax on consumption of more than 300 m³ of tap water *

Does your business use a lot of tap water? Then you will pay more tax. Currently, you only pay tax on the first 300 m³ per year. From 2026, this will be the first 50,000 m³.

From 2027, this limit will disappear altogether. You will then pay tax on all the tap water you use.

BOR and DSR only for ordinary shares and a minimum of 5%

Do you receive shares in a company through a gift or inheritance? Or are you transferring shares in your business? The business succession scheme (BOR) and transfer scheme (DSR)will change on 1 January 2026. These tax benefits will only apply to ordinary shares. And the shareholder must own at least 5% of the shares. This makes the scheme less attractive for some investors and families.

Quarter rates for motor vehicle tax to be abolished *

The quarter rate for motor vehicle tax (motorrijtuigenbelasting, MRB) will be abolished from 2026. Currently, some motorists pay only 25% of the normal MRB.
New rates (in Dutch) will apply to the following vehicles:

• Cars with zero CO2 emissions will soon pay 70% or 75% of the full motor vehicle tax rate for a fossil fuel-powered passenger vehicle.
• Camper vans will pay half instead of a quarter.
• Other fully electric or hydrogen-powered vehicles will lose their advantage entirely. You will soon pay the full MRB amount for these vehicles. This also applies to vehicles used to transport horses (horseboxes).

Discount on motor vehicle tax for sustainable cars extended

Do you drive a hydrogen or electric passenger car? Then in 2025, you paid motor vehicle tax (MRB) for the first time with a 75% discount. The discount was set to end in 2026, but it will remain in place for the time being to encourage emission-free driving.

• From 2026 to 2028, a 30% discount will apply to new and second-hand passenger vehicles with zero emissions.
• In 2029, a 25% discount will apply to zero-emission passenger vehicles.
• In 2030, there will be no discount.

Staff

Hiring people with occupational disabilities made easier

It will become easier for entrepreneurs with more than 25 employees to hire people with occupational disabilities.

The labour costs compensation subsidy (LKV) for an employee will soon apply for as long as they are employed. Previously, the LKV applied for a maximum of 3 years. Also, a special statement from the UWV is no longer required to receive this subsidy. If you employ more people with occupational disabilities than required by the quota scheme (in Dutch), you will also receive a higher LKV as a bonus.

No more LKV for older employees

You will no longer receive labour costs compensation for employees aged 56 or older who joined the company on or after 1 January 2024. This subsidy was intended to encourage employers to hire older employees. The benefit will continue to apply to employees hired before 2024.

Exemption threshold Early Retirement Scheme (RVU) extended *

Do you have employees with physically demanding jobs who want to retire early? The RVU makes this possible. As an employer, you pay a benefit until the employee reaches retirement age. The exemption threshold for RVU is being extended. This means that you do not pay tax on the first €2,573 of the benefit. This amount is approximately €300 higher than in 2025. You do pay tax on the part of the benefit above this amount. This will increase in stages to a maximum of 65% in 2028.

Other

Childcare providers must report serious incidents *

As a childcare organisation or childminder, you must report serious incidents immediately to the municipal health service (GGD). Examples include accidents that result in a child being taken to hospital. The government wants to better identify the risks in childcare and increase the safety of children.

Digital communication with the authorities always possible

From 2026, you will be able to arrange official matters digitally with municipalities, provinces, and water authorities. In most cases, communication on paper will still be possible.

Crypto providers must share data with the Netherlands Tax Administration *

If you offer crypto services, from next year you will have to collect, check, andshare your users' data with the Netherlands Tax Administration. This will enable the Tax Administration to better check whether people are correctly declaring income from crypto in their tax returns.

Fewer points of sale for tobacco products *

The government wants to make smoking less attractive. That is why tobacco and vapes will be sold in fewer places in the coming years. From 1 January 2026, only specialist tobacco shops will be allowed to sell vapes and refill packs. From 2030, only specialist tobacco shops and convenience stores will be allowed to sell tobacco products and related products. 2 years later, only specialist tobacco shops will be allowed to do so.

GACS software mandatory for office buildings, shops, and warehouses

Do you own an office building, shop, or warehouse with heating or air conditioning systems with a capacity of more than 290 kW? Then you will soon be required to use the GACS software system. This system helps you monitor your energy consumption and save energy. From 2030, this will apply to systems above 70 kW.

Surcharge for disposable cups and containers to be abolished *

From 2026, it will no longer be mandatory to charge extra for plastic cups and containers that you give your customers to take away. It will remain mandatory to offer an alternative, such as a reusable cup or container. Customers may also bring their own cup or container. You can reward your customers for doing so by offering them a discount, for example.

Ban on cash payments over €3,000 

Do you ever settle large amounts in cash? From 1 January 2026,cash payments over €3,000 will be banned. You will then have to pay by debit card, bank transfer, or another digital method. The government wants to combat money laundering and fraud with this measure.

How are laws made?

Sometimes a new law or an amendment is announced, and then does not go ahead, or the effective date is postponed. Why do some announced laws come into effect, while others do not?

Roughly speaking, the legislation process works like this. Ministries and the lower house of parliament (Tweede Kamer) prepare laws. Once the lower house of parliament has approved a law, it goes to the upper house (Eerste Kamer). They can only accept or reject the law. If the upper house accepts the proposal, the government publishes the new law in the Staatsblad (Government Gazette).

The effective date of a law can be mentioned in the law itself. Or the law may state that the government will determine the effective date by Royal Decree (Koninklijk Besluit, KB). The KB is published in the Staatsblad.

As the legislative process consists of many steps, it can take a while before a proposed law enters into effect. Changes in the composition of the lower and upper houses of parliament can also affect the progress. If there is a caretaker cabinet in place ('demissionair cabinet'), it will only handle current affairs and not take any major decisions. 

Supervision and enforcement

In the Netherlands, several organisations are responsible for supervising and enforcing laws. 

Supervision

Several supervisory organisations check whether everyone complies with the law. Examples are the Autoriteit Financiële Markten (Financial Markets Authority, AFM), the Nederlandse Voedsel- en Warenautoriteit (Dutch Food and Consumer Product Safety Authority, NVWA) and the Inspectie voor de Gezondheidszorg (Healthcare Inspectorate, IGZ).

Enforcers

Municipalities, police, and the Openbaar Ministerie (public prosecution, OM) enforce laws in several ways. Think of performing checks or providing information and advice.

Sanctions

If a person breaks a law, enforcement organisations can impose sanctions. These vary from a fine to a jail sentence. Which sanction applies depends on the gravity of the offence.