Prince’s Day 2025: what do the plans mean for your SME?
It’s behind us again: Prince’s Day 2025. A (double) demissionary government and little room for big reforms, yet still a package of measures that will affect you as an entrepreneur. Here’s what you really need to know.
Tax rates and deductions: small changes
Income tax will shift slightly: the first bracket goes down a bit, the second goes up a bit, and the third stays the same. The self-employed deduction will drop from €2,470 to €1,200, while the SME profit exemption remains at 12.7%. In short: running your own business becomes a little less attractive, while salaried work is rewarded a bit more. A trend we’ve been seeing for years.
Box 3: more tax, less exemption
From 2026, you’ll be allowed to keep less savings tax-free: the threshold drops from €57,684 to €51,396 per person. At the same time, the tax office (Belastingdienst) will use a higher ‘fictional’ return of 7.78%. Result: you’ll pay more tax, and sooner.
Company cars on fossil fuels?
Do your employees drive a company car on petrol or diesel? From January 1, 2027, you’ll face an additional 12% levy on private use (and yes: commuting counts as private use).
The bicycle scheme gets more logical
Do you use a company bike that’s hardly ever parked at your home (think: hub bikes or campus bikes)? Then you no longer need to pay additional tax. Only if the bike is kept at your home address more than 10% of the time will the regular 7% tax apply.
VAT on culture, sports and media stays low
A planned VAT increase to 21% has been scrapped; it will remain at 9%. This is good news especially for entrepreneurs in the creative sector, sports clubs, and media.
Less regulatory burden
The reporting requirement for work-related mobility (WPM) will only apply from 2026 to companies with 250 employees or more (instead of 100). For most SMEs, this means one less administrative burden.
Green investments: less attractive
The tax benefits for green investments will be phased out over the coming years. In 2027 the exemption will only be a symbolic €200, and in 2028 the scheme disappears entirely.
Early retirement scheme becomes permanent
The RVU scheme (early retirement) will become structural from 2026. As long as the payment stays under the threshold, you as an employer won’t have to pay the extra 50% levy. This gives employers more options to let older employees retire early in a fair way.
Transfer tax: new 8% rate
Are you investing in homes you won’t live in yourself (such as rentals, holiday homes, or homes for children)? From 2026, a new transfer tax rate of 8% applies. For real estate agents this is key news: clients who want to invest in property will face higher costs, which could dampen buying appetite. Buyers should be made aware of this now.
The picture is clear: the government is opting for minor adjustments, not a major overhaul. Doing business remains challenging, but with smart choices, you can limit the impact. You can also read the above points in more detail. A video in Dutch language about the changes can be found on the Chamber of Commerce website.
