What major tax proposals came out of Finance Minister Heinen's briefcase on Budget Day 2025? We list the 10 most important ones for you.
1. Tax standardisation market for vehicles aimed at passenger transport
From 1 January 2027, the government will introduce a pseudo-final tax of 12% on the list value of fossil passenger cars (not fully emission-free) that employers make available to employees for private purposes, including commuting. The measure targets M1-classified vehicles (e.g. passenger cars, camper vans, vans up to 9 seats) and only applies if the car is made available for the first time from 2027 onwards. For existing cases, transitional law applies until 17 September 2030. The pseudo final tax is not recoverable from the employee and does not apply to exclusive business use. The aim is to encourage employers to switch to emission-free vehicles, thereby substantially accelerating the share of electric cars in the business fleet and additional CO2 reduction. Motorbikes, vans and trucks are excluded from this scheme. Evaluation will follow three years after implementation.
2. Measures lucrative interest scheme
With effect from 1 January 2026, the taxation on benefits from an indirectly held lucrative interest, to which the substantial interest variant applies, will be increased via a basis multiplier. This increases the effective tax burden in Box 2 to a maximum of 36%, depending on the bracket in which the benefit falls. In addition, the scheme will be adjusted to prevent that the creation of a substantial interest allows losses from substantial interest to be set off such that taxation of benefits from lucrative interest is (virtually) eliminated.
3. Adjustments box 3
From 1 January 2026, the flat rate for other property in Box 3 will be increased by adjusting the method of calculating the long-term return on property. This will now explicitly take into account rental income and the benefit of own use. This increases the flat rate for other assets to 7.78%. In addition, the tax-free capital will be reduced from €57,684 to €51,396 per taxpayer. These measures will apply until the introduction of the new Box 3 system in 2028.
4. Proposal unequal fractions in a matrimonial property division
With effect from 1 January 2026, it is proposed that a spouse's share in a matrimonial community of property, or the amount that accrues in excess of 50% through a settlement clause, will be subject to inheritance or gift tax upon dissolution of the community. This prevents assets from passing untaxed between spouses due to unequal fractions or settlement clauses. Existing cases until 18 April 2025 are subject to a transitional regime; subsequent changes are subject to the new regime.
5. Clarifying bicycle scheme
The addition rules for a bicycle provided by the employer or for an IB entrepreneur will be adjusted with retroactive effect to 1 January 2020. If the bicycle is not or only incidentally (no more than incidentally) parked at the home or residence address, the addition applies at nil. This means that no wage or income tax is due in such situations. The change applies to all types of bikes, including share bikes and hub bikes, and clarifies the application of the existing addition.
6. Deferring effective date of tax interest on inheritance tax and tax return deadline
It is proposed to extend the return period for inheritance tax from eight to 20 months after death. At the same time, the starting point for charging tax interest is also shifted to 20 months. This will give taxpayers more time to have the necessary information and file a correct and complete tax return, as a result of which tax interest will be due in far fewer cases. The measures apply to deaths from 1 January 2026 and simplify both the return process for taxpayers and implementation by the Tax Administration.
7. Exclude non-market trading related parties from application of vacancy ratio
The government proposes to regulate that the vacant value ratio in box 3 and the Inheritance Tax Act cannot be applied if a house is rented or leased to an affiliated party at a non-market price. In such cases, the WOZ value without markdown will now apply. Also, the case law of the Supreme Court, which allowed using the market value, can no longer be invoked. Affiliated parties that do rent in accordance with the market will retain the possibility to apply the vacant value ratio.
8. Repair box 3 counterparty regime for bonds and other assets with short-term instalments
The rebuttal scheme in Box 3 will be amended to prevent avoidance via the purchase of bonds with accrued interest or similar assets. Henceforth, bonds and similar securities must be valued at their fair value including accrued interest in the rebuttal scheme, and the exemption for short-term instalments, excluding bank deposits, will cease to apply. The change applies retroactively from 25 August 2025, 4pm, and includes transitional rules for previously purchased assets to avoid mismatches.
9. ‘Healthy to retirement’ agreement’
The temporary RVU threshold exemption will be structurally continued from 2026 with an increase in the threshold amount by €300 gross per month (indexed to minimum wage). This will allow employees to retire three years before their state pension age without the employer paying pseudo final tax up to this amount. For higher benefits, the rate of pseudo final tax will be increased incrementally to 65% in 2028. The scheme will be applied in a controlled and targeted manner for employees with heavy work, with monitoring, evaluation moments and the possibility of adjustment via AMvB.
10. Extend reduced excise duty rates on unleaded petrol, diesel and LPG
The excise duty rates applicable as of 1 July 2023 for unleaded petrol, diesel and LPG will remain unchanged in 2026 and will not be adjusted again until 1 January 2027. By refraining from indexation, the excise rebate for 2026 will actually be wider than in previous years. This will keep the rates above EU minimum levels. The measure temporarily reduces fuel costs and results in lower tax revenues. A study on the border effects of ending the reduction will follow in 2027.