Coalition Agreement 2026-2030 published

The D66, VVD and CDA political parties presented a Coalition Agreement on 30 January 2026 entitled: "Aan de slag: Bouwen aan een beter Nederland" (Getting to work: building a better Netherlands). The Coalition Agreement sets out the parties’ joint plans for the Netherlands. 

The three parties have formed a minority government so, to implement their proposals they will have to find support from the opposition parties in both the House of Representatives (Lower House) and the Senate (Upper House). Whether and to what extent the published plans will be implemented therefore depends on how willing the other parties are to support them.

We have provided an overview here of the main tax measures proposed by the coalition partners that will affect employers and employees. 

No cuts to the expat scheme 

The coalition sees a real need for economic growth. The parties are prepared to make the choices necessary to create a strong economy, an efficient government and a resilient nation. The coalition is keen to promote calm, stability and predictability, based on the understanding that investment decisions are taken over the long term. Confidence that working, doing business and investing in the Netherlands pays off, must grow. This will make the Netherlands the strongest economy in Europe with the best investment climate, the coalition believes.

The coalition takes the view that businesses can only thrive when policies and taxes are stable. To ensure a level playing field the coalition wants to retain schemes that are important to businesses, even where these may often be called into question. In this context the expat scheme was specifically mentioned as one which will not be changed. 

WBSO and WKR

In the context of the business climate, the coalition also wants to reduce the regulatory burden on businesses. For employers this means that the Promotion of Research and Development scheme (WBSO) and the Work-Related Costs Scheme (WKR) will be simplified, with a reduction in the administrative burden, among other things. It is not yet known what form this will take in practice.

In addition, employers will be given the opportunity to help employees pay off their student loans more quickly via the work-related costs scheme (WKR). Here too, it is not yet known how this will be arranged. 

Full-time bonus 

It must be financially rewarding to work more hours. The government is therefore looking into "unorthodox measures" to achieve this, such as a full-time bonus, an employed person's tax credit per hour and an overtime allowance. 

Freedom contribution

A "freedom contribution" is to be introduced for companies and private individuals. The freedom contribution for businesses will be implemented as a targeted increase in the Invalidity Insurance Fund (AOF) contribution. There will be consultation with business organisations regarding the details, also in relation to the business climate.

The freedom contribution for citizens will be levied via the table correction factor that will be applied to a limited extent in income tax in 2027 and 2028. This means that the correction for inflation will be applied only partially in the tax brackets, effectively resulting in an increase in income tax. 

Share options for start-ups and scale-ups to be made more attractive

The coalition specifically mentioned that start-ups and scale-ups should be able to grow in the Netherlands. It will therefore be made easier to pay staff partly in shares or share options. The opportunities for providing financial employee participation in a tax-efficient manner will also be expanded.

Freelancers: new Self-employment Act and legal presumption of employment

More room will be created for the self-employed. 

The coalition will tackle bogus self-employment by splitting the draft Assessment of Employment Relationships and Legal Presumption (Clarification) bill (VBAR) which deals with this and introducing a legal presumption of employment. The remaining part of the VBAR bill will be replaced as quickly as possible by the Self-employment Act.

An ever increasing group of self-employed people forms part of the modern labour market where there is a growing desire for autonomy. The coalition wants to provide this group of people with the room and clarity that they deserve. So the coalition wants to introduce the Self-Employment Act as soon as possible.

Social security cuts

Social security will be cut back in a number of areas. 

Unemployment Benefit (WW): The maximum duration of unemployment benefits will be reduced to one year, with higher benefits in the first few months to speed up the transition to new work. Requirements relating to the accrual of rights and their redemption will also be tightened up. 

Income Provision for Fully Occupationally Disabled People (IVA): to keep the occupational disability benefit system workable, the IVA scheme will be abolished for new cases. 

Pensionable age for State Old-Age Pension (AOW): From 1 January 2033 the eligible age for a state old-age pension (AOW) will rise in line with life expectancy to ensure that the system remains future-resilient. At the same time, consideration will be given to people in demanding occupations who are unable to work longer.

Simplifying

The tax, social security and supplementary allowances systems will be simplified step-by-step. Among other things, this will include gradually reducing the multitude of income-related tax schemes, starting with tax credits.

The new government will present a reform agenda at the end of 2026 with specific milestones for various areas, starting with an overhaul of the income tax system and steps in the system of allowances, other income-related schemes and social security. The basic principles being simplicity in implementation, clarity and predictability for people and that work must be financially rewarding, with no further levelling out of taxes.

Mortgage interest deduction 

As the coalition sees it, the housing crisis affects both the owner-occupied and rental housing markets, the social housing and private sectors, as well as both urban and rural areas. The coalition points out that a lasting solution requires a ground-breaking approach and unorthodox choices. Tackling the housing shortage will therefore be a top priority.

The coalition’s plans for a healthy housing market are not just about house building, but also the affordability of housing. To ensure that home ownership continues to be affordable and maintain stability in the housing market, the tax treatment of owner-occupied homes will remain unchanged. This means that the current mortgage interest deduction will not be affected. 

Labour migration 

A pilot scheme will be launched to actively attract highly educated and trained workers to the Netherlands for specific sectors, for a maximum of three years, with set salary and housing requirements.

In addition, asylum seekers who have a good chance of obtaining a residence permit will be entitled to start working after three months in the asylum procedure. The coalition intends to cut red tape by introducing an alternative to the work permit for people from outside the European Economic Area (TWV) These promising asylum seekers will receive support and job placement mediation from the outset to help them integrate more quickly and contribute to the reception process. Asylum seekers with poor prospects will not be granted the right to work.