In 2025, the Netherlands will implement a significant changes to its tax system, impacting both employees and entrepreneurs. These adjustments include a restructuring of the income tax brackets for individuals and the continuation of key tax incentives for businesses, all aimed at stimulating economic growth. 

Changes to Personal Income Tax rates 

The Dutch income tax system is divided into three “boxes” for tax filing. Box 1 includes income from wages, property and business profits. For 2025, the first income bracket will be split into two, with the following revised rates: 

  • Income up to €38,441 ($40.055,52): tax rate of 35.82% (a slight decrease from 36.97% in 2024). 
  • Income between €38,441 and €76,817 ($80.043,31): tax rate of 37.48% (an increase from the previous bracket). 
  • Income over €76,817: tax rate of 49.50% (unchanged from 2024). 

Additionally, pensioners will benefit from a special tax rate of 19.07% for income up to €38,441, providing some tax relief. 

Tax incentives for businesses 

The Dutch government remains committed to creating a business-friendly environment, especially for entrepreneurs. Businesses operating under structures like eenmanszaak (sole proprietorship), VOF (general partnership), or maatschap (professional partnership) will continue to enjoy significant tax incentives. Entrepreneurs can benefit from deductions such as the Ondernemer-Deductie (entrepreneur’s deduction) and the MKB-winstvrijstellings (SME profit exemption). These measures reduce the taxable income of businesses, easing their tax burden and supporting their growth. 

Opportunities for international companies 

These tax reforms strengthen the Netherlands’ position as a central economic hub in Europe. The changes improve the competitiveness of local businesses while making the country an attractive destination for foreign investment. Therefore, with favorable tax benefits, economic stability and a supportive business climate, the Netherlands is well-positioned as an ideal location for new ventures and international companies looking to expand across Europe. 

If you are considering expanding into the Netherlands, do not hesitate to contact Auxadi for the accounting, payroll and tax management of your multinational company. As well as in more than 50 countries around the world. 

Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.