Every new year brings changes to Dutch law, and 2026 is no exception. This year, the Netherlands introduces several updates that affect both businesses and expats living or working here. From tax adjustments and environmental measures to the well-known 30% ruling, these changes aim to create a fairer, greener, and more transparent system.
If you are an expat in the Netherlands, understanding these new rules will help you stay compliant and plan your finances effectively. Below is an overview of the most relevant updates for 2026.
Key Dutch Law Changes in 2026 for Expats in the Netherlands
These updates to Dutch law in 2026 will impact how expats live, work, and manage their finances in the Netherlands.
New Tax Rules for Expats in the Netherlands
The Dutch Tax Plan 2026 introduces key changes for international professionals working in the country.
1. Adjustments to the 30% Ruling for Expats in the Netherlands
The 30% ruling remains one of the most attractive benefits for an expat in the Netherlands, but several updates will apply from 2026. The maximum salary cap for applying the ruling rises to €262,000, while the minimum salary thresholds also increase:
- Standard requirement: €48,013
- Under 30 with a master’s degree: €36,497
These new figures aim to reflect current wage growth and living costs. Employers should check that their expat employees continue to meet these updated thresholds.
The tax-free allowance will stay at 30% throughout 2026, but is set to drop to 27% in 2027. Expats who qualified before 2024 can still apply the partial foreign taxpayer status until the end of 2026, under transitional rules.
2. Narrower Extraterritorial Costs (ETK) Scheme
The ETK scheme allows employers to reimburse specific costs for employees working abroad. However, Dutch law now limits what can be reimbursed tax-free. From January 2026, costs for utilities (like water, gas, and electricity) and private international phone calls will no longer qualify.
Other expenses, such as double housing or travel between the Netherlands and the home country, can still be reimbursed tax-free. This change makes it essential for both employers and expats to review their compensation packages.
Updates to Dutch Business and Employment Laws
For businesses employing expats in the Netherlands, the 2026 Tax Plan also brings new compliance and tax obligations.
1. Corporate Income Tax and Investment Incentives
Corporate income tax rates remain unchanged:
- 19% for profits up to €200,000
- 25.8% for profits above €200,000
A new aggregation rule for the Energy Investment Allowance (EIA) ensures companies cannot exceed the maximum eligible investment amount by using multiple partnerships. Additionally, the Netherlands continues aligning its Minimum Taxation Act with OECD guidelines, ensuring multinational firms pay a minimum 15% effective tax rate.
2. Simplification of Business Regulations
The Dutch government plans to simplify or scrap nearly 500 business-related rules by mid-2026. Employers will see fewer reporting obligations, such as relaxed mobility reporting requirements. However, a 12% levy on fossil-fuel company cars will be introduced to encourage sustainable transport choices.
Environmental and Real Estate Tax Measures
Among the other changes in Dutch business law, the environmental measures the Dutch government is taking are most important.
1. Real Estate Transfer Tax (RETT)
From January 2026, the RETT for investment properties (residential real estate not used as a main home) will drop from 10.4% to 8%. The 2% rate for owner-occupied homes remains unchanged, supporting home ownership among residents and expats in the Netherlands alike.
2. Environmental Taxes and Water Tariffs
To promote sustainability, the government will raise the drinking water tax ceiling dramatically, from 300 m³ to 50,000 m³. Businesses using large volumes of water will face higher costs. Furthermore, new environmental measures include a distance-based flight tax and adjustments to CO₂ levies.
Income Tax and Personal Finance Updates for workers including Expats in the Netherlands
For individuals, including expats in the Netherlands, personal income tax brackets will adjust as follows:
- Up to €38,883: 35.70%
- €38,883–€79,137: 37.56%
- Over €79,137: 49.50%
These rates are designed to ease the tax burden for lower-income earners while maintaining progressivity for higher salaries.
Staying Informed and Compliant in 2026 as a Business or an Expat in the Netherlands
As Dutch law continues to evolve, staying informed is key for any expat in the Netherlands. From the 30% ruling and ETK reimbursements to environmental taxes and mobility reforms, 2026 brings meaningful change.
At Octagon Professionals, we help international businesses and expats navigate these updates with ease. Whether you need guidance on payroll compliance, expat taxation, or Dutch employment regulations, our team ensures your operations remain compliant and efficient.
Get in touch with Octagon Professionals today to stay ahead of Dutch law changes and make your experience as an expat in the Netherlands as smooth as possible.
