The Most Important Fiscal Changes Announced on Prinsjesdag 2025: Your Finances in the Netherlands

Every year on the third Tuesday of September the Dutch government reveals their budget proposals on Prinsjesdag, shaping the financial framework for the upcoming calendar year. For those living and owning businesses in the Netherlands these announcements often result to considerable changes in taxation, housing policies and investment regulations. Gaining an understanding of the upcoming changes is crucial. This blog explains the key fiscal changes introduced on Prinsjesdag 2025 and explains what they can mean to you. 

Key Fiscal Changes in 2025 

Adjustments to Income Tax Brackets 

The government has slightly reduced the lower income tax rate to increase the purchasing power. In 2025 the first bracket up to €38,441 is taxed at 35.82%. Income between €38,441 and €76,817 is taxed at 37.48%. Income above €76,817 is taxed at 49.50%. If you have reached AOW age, the first bracket rate is 17.92%. 

This means middle income earners may see a small improvement in their take home pay, while the 49.5% top rate still applies to income above €76,817. 

 Impact for You: 

If you work or run a business in the Netherlands, this adjustment could increase your net income slightly. It is a good moment to review your budget and consider allocating the extra funds toward sustainable investments or mortgage repayments for example. 

Mortgage Interest Deduction Declines 

The Dutch government continues to phase out the mortgage interest deduction for higher earners. In 2025 the maximum deduction rate stays the same at 37.48%. Homeowners with large mortgages will see no increase in tax benefit from their interest payments. 

Impact for You: If you own a property or intend on purchasing a house take into account the tax benefits when assessing affordability. This is particularly crucial for expats or foreign clients since mortgage regulations in the Netherlands are different from those in other nations. We suggest looking into fixed-rate home loans and energy efficient upgrades which might be eligible for subsidies. 

Box 3 Wealth Tax Reform 

The long-awaited reform of Box 3 which taxes savings and investments is moving forward. Starting in 2025 taxation will be based on a fixed assumed rate, but the goverment is aiming to implement a move to taxation based on actual returns in the upcoming years. The new system aims to be fairer but could add complexity for investors. 

Impact for You: If you hold savings or investments in the Netherlands expect more detailed reporting requirements in the coming future. This change could increase taxes for those with higher stock market returns. Strategic asset allocation and sustainable investment options can help better your position. 

Sustainability Incentives 

Prinsjesdag revealed additional subsidies for energy efficient home improvements and eco-friendly investments. These actions correspond with EU climate objectives and provide economic advantages for individuals who proactively try to implement sustainability. 

If you are thinking about renovations the moment is now. These implementations can lower expenses while contributing to a more environmentally friendly future. 

Prinsjesdag 2025 brings both opportunities and difficulties for residents and entrepreneurs in the Netherlands. Lower income tax rates offer modest relief while changes to mortgage deductions and wealth tax require careful planning. At our advisory firm we help clients navigate these updates with tailored strategies whether that means optimizing your tax position, investing responsibly or planning for homeownership. 

Curious about how these changes affect your personal situation? Contact us today for a consultation and let us turn fiscal updates into financial advantages.