Dutch coalition and minority cabinet reach budget deal, reversing social security cuts and raising taxes on high incomes.
The Dutch minority cabinet reversed most social security cuts in its 2027 budget, allocating €1.5 billion for purchasing power. But 97% of €6 billion in tax increases fall on workers, drawing sharp criticism from the Council of State. Box 3 asset tax reform is delayed again to 2029.
The Dutch minority cabinet has reversed most social security cuts and allocated €1.5 billion for purchasing power, funded by tax increases. But the Council of State warns that 97% of the €6 billion tax hike falls on workers – contradicting the government's 'work must pay' rhetoric. The unpopular box 3 asset tax reform is likely delayed again until 2029. For expats, this means higher income taxes and continued uncertainty on savings and investments.
The Dutch minority cabinet reversed most social security cuts, postponed the healthcare deductible increase by one year, and allocated €1.5 billion for purchasing power, partly funded by a €750 million tax on high incomes. Expats should watch for details on box 3 taxation and how the €1.5 billion will be distributed.
The Dutch minority cabinet has reversed most planned social security cuts, postponed the healthcare deductible hike, and allocated €1.5 billion to purchasing power. A €750 million tax increase on high incomes partly funds the deal. For internationals, this means no AOW cut, delayed benefit reductions, and higher taxes for high earners.