Dutch fiscal and regulatory policy developments

The Dutch government has engaged in several regulatory and fiscal adjustments. In mid-October, the Cabinet delayed new measures intended to combat tax base erosion in real estate investments due to concerns that proposed changes to European Commission ‘earnings stripping’ rules could undermine national efforts to prevent profit shifting.

By late October, new regulations regarding short-term rentals through platforms such as Airbnb and Booking.com were implemented. To improve oversight in accordance with European regulations, a central government point can now share rental data, including guest counts and addresses, with local municipalities. Municipalities retain authority to enforce registration requirements, maximum annual nights, and permit obligations, with potential fines for repeat violations reaching up to €110,000.

Regarding fiscal policy, the government has proposed changes to the 2027 Tax Plan to abolish certain healthcare cost deductions by 2028. Under these rules, any reimbursements received after 2027 for previously deducted healthcare costs must be added back to an individual’s income to prevent double benefits.

Additionally, the Dutch Ministry of Finance presented the 2025 Tax Package. A key component is the conditional withholding tax (CWHT), which has been expanded since January 1, 2024, to include suspected dividend payments alongside interest and royalty payments made to affiliated companies in low-tax jurisdictions or in cases of suspected abuse. The applicable tax rate is currently 25.8%, matching the standard corporate income tax rate.