The Netherlands is consulting on draft legislation from 13 February to 13 March 2026 affecting expat taxation, share acquisition price rules, and double taxation relief for board members. Key changes include abolishing partial foreign tax liability by 2027, implementing a flat-rate expat ruling (30% for 2025-2026, reducing to 27% from 2027), and raising salary thresholds for expat status.
The Netherlands initiated a public consultation on draft legislation to amend expat taxation, share acquisition price rules after emigration, and unilateral double taxation relief for directors and supervisory board members.
The consultation runs from 13 February 2026 to 13 March 2026.
The key points of the draft legislation are as follows:
Taxation of expats
The right for expats to opt for “partial foreign tax liability” is abolished effective January 1, 2025. Under transitional law, those who received an expat allowance in the last pay period of 2023 may continue to use this status until 31 December 2026. From 1 January 2027, the choice right ends for all taxpayers.
- Reversion to flat-rate expat ruling: The previously planned “30-20-10%” step-down scheme is being replaced with a fixed maximum percentage. For 2025 and 2026, the rate is set at 30%. Starting 1 January 2027, the rate will be reduced to 27%.
- Increased salary thresholds: To qualify for the expat ruling, employees must meet specific salary norms, which are being increased for 2027. The standard salary norm will rise to EUR 52,521 (up from EUR 48,013), and the norm for those under 30 with a Master’s degree will rise to EUR 39,923 (up from EUR 36,497).
Acquisition price of shares after emigration
The draft legislation clarifies rules to prevent double reduction of acquisition prices for substantial shareholdings (at least 5%) following shareholder emigration. Currently, both dividend distributions and subsequent sales or taxable alienations can result in overlapping downward adjustments. The amendments ensure only a single reduction applies as intended.
The reduction of the acquisition price is now limited to the amount of the deemed disposal benefit related to the conserving assessment. This prevents the acquisition price from becoming negative, which would otherwise result in taxation of value increases that occurred while the taxpayer was abroad.
Unilateral relief for directors and supervisory board members
New provisions in the Bvdb 2001 introduce a credit system for foreign taxes paid by directors and supervisory board members:
- Tax credit for income tax (Box 1): Under the new Article 13b, residents of the Netherlands can claim a credit for foreign taxes paid on income earned as a director or a member of the supervisory board of a foreign-resident entity. The credit is the lower of the foreign tax paid or the proportional Dutch tax due on that income.
- Corporate income tax credit: A similar provision, Article 36d, is introduced for corporate taxpayers earning income in these roles, following a similar credit logic.
- Carry-forward Rules: If the foreign tax cannot be fully credited in a single year (e.g., due to the proportional limit), the remaining amount can be carried forward to subsequent years.
- Option for cost deduction: Taxpayers may treat the foreign tax as a deductible expense rather than claim a tax credit. This choice must be made annually on the tax return.
