Dutch Government to Slash Tax Relief for New Businesses to Ten Euros

2026-09-17 community

The Hague, Thursday, 17 September 2026.
The Dutch government will slash the start-up tax allowance to €10 in 2027 because tax authority IT systems cannot technically process a direct reduction to zero.

A Technical Solution to a Policy Shift

On Tuesday, September 15, 2026, State Secretary of Finance Eerenberg presented the “Belastingplan 2027” (Tax Plan 2027) to the Dutch House of Representatives (Tweede Kamer) [3][5]. This sweeping fiscal package outlines a drastic reduction in the start-up tax allowance (startersaftrek) for self-employed entrepreneurs (zzp’ers) [3][4]. Currently valued at €2,123 in 2026, the allowance is set to drop to just €10 on January 1, 2027, before its complete abolition on January 1, 2028 [2][3].

Funding the Energy Package and Closing the Fiscal Gap

The decision to slash the allowance to €10 rather than eliminating it immediately in 2027 is a technical workaround [3]. The IT systems of the Dutch Tax Administration (Belastingdienst) are currently unable to process a direct reduction to zero, requiring a symbolic €10 placeholder for the transitional year [3]. This adjustment will impact approximately 250,000 entrepreneurs and is projected to generate €112 million in 2027 to help fund the government’s energy shock resilience package (“Acties Weerbaarheid Energieschok”) [3][4].

Impact on the Dutch Entrepreneurial Landscape

This measure is part of a broader fiscal package of nearly €1 billion aimed at mitigating high energy and fuel costs for citizens and businesses [4]. Minister of Finance Heinen defended the policy, stating that reducing these entrepreneur schemes is a logical step to narrow the fiscal gap between self-employed individuals and salaried employees [4]. However, the policy has drawn sharp criticism from industry representatives. Leo Kits, spokesperson for ZZP Nederland, questioned the decision to structurally cut back on startup incentives to cover temporary energy price surges, describing the cumulative effect on self-employed workers as “blow after blow” [4].

Compounding Reductions for Self-Employed Workers

The policy shift will be felt deeply by the country’s growing self-employed workforce [4]. According to Statistics Netherlands (CBS), there were approximately 1.2 million self-employed individuals (zzp’ers) in 2025 for whom entrepreneurship was their primary occupation, out of more than 1.8 million registered in the commercial register [4]. These new rules will apply to all starting entrepreneurs, including those who launched their businesses in 2025 or 2026, as the government has confirmed there will be no transitional arrangements [2][4].

The Shrinking Safety Net for Startups

The reduction of the startersaftrek does not happen in isolation [3][4]. Simultaneously, the general self-employed deduction (zelfstandigenaftrek) is scheduled to decrease from €1,200 in 2026 to €900 on January 1, 2027 [1][3][4]. This continues a steep downward trajectory from 2020, when the deduction stood at €7,280—representing an 88% reduction over a six-year period -87.637 [4]. In 2026, a starting entrepreneur could deduct a total of €3,323 from their profits [4]. By 2027, this combined deduction will shrink to just €910 (€900 self-employed deduction plus the €10 start-up allowance) [3][4], representing a loss of €2,413 in tax deductions 2413.

Timeline of Abolition and Broader Tax Adjustments

Other business allowances are also facing deep cuts under the Belastingplan 2027 [3][5]. The cessation allowance (stakingsaftrek) will be slashed by 75%, dropping from a maximum of €3,630 to €908 on January 1, 2027, before being completely abolished on January 1, 2030 [1][3][6]. Similarly, the co-worker allowance (meewerkaftrek) will see its rate reduced from 4% of profits to just 1% in 2027, with total phase-out also set for 2030 [1][3][6].

Further Tightening for Business Owners

Looking ahead, the structural framework for Dutch startups will undergo further tightening [1][3]. Following the complete abolition of the standard start-up allowance on January 1, 2028 [1][2][3], the discretionary depreciation scheme (willekeurige afschrijving) for start-ups will also be eliminated on the same date [1][3][5][6]. Furthermore, the specialized start-up allowance for entrepreneurs with disabilities—which currently offers maximum deductions of €12,000 in the first year, €8,000 in the second, and €4,000 in the third—is scheduled for full abolition on January 1, 2029 [1][3][5][6].

Rising Tax Brackets and Restricted Indexation

Beyond specific entrepreneurial deductions, self-employed individuals will face higher income tax rates in 2027 [3]. The tax rate in the first bracket for those under the state pension (AOW) age will increase from 35.75% to 36.23%, while the second bracket rate will rise from 37.56% to 38.16% [3]. Additionally, the government will index tax brackets and tax credits by only 48% of the projected 2.6% inflation rate [1][3]. This limited inflation adjustment, termed a “freedom contribution” (vrijheidsbijdrage) by the cabinet, is expected to bring in €1.5 billion in 2027 to help balance the national budget and fund other initiatives [3].

Bronnen

Startup Tax Prinsjesdag 2026