NETHERLANDS Law and Practice Contributed by: Nathalie Idsinga and Mignon de Wilde, Arcagna
The Dutch exit tax is due on Dutch pension savings and interests in companies that qualify as substantial shareholdings. 1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens Non-resident individuals who own Dutch real property directly in private are subject to personal income tax in Box 3 (see 1.1 Tax Regimes under Box 3), subject to the application of a treaty for the avoidance of double taxation. 1.6 Stability of Tax Laws The Dutch government will present its Tax Plan on Budget Day on 15 September 2026. Certain tax revi - sions were already announced on Budget Day last year. Proposed changes that are noteworthy are listed below. These changes are expected to enter into effect in 2027, unless noted otherwise. • The benefit of the 30% ruling will be lowered to 27%. • The new regime for Box 3 is expected to come into effect as of 1 January 2028, replacing the current two Box 3 systems. The bill “Actual Return Tax Act Box 3”, submitted on 19 May 2025, was passed by the House of Representatives (Tweede Kamer der Staten - Generaal ) on 12 February 2026 and is currently being considered by the Senate (Eerste Kamer der Staten - Generaal ). 1.7 Transparency and Increased Global Reporting The Netherlands participates in the US Foreign Account Tax Compliance Act (FATCA), the Common Reporting Standard (CRS) and several other multina - tional transparency initiatives. FATCA and CRS Under FATCA, Dutch financial institutions are required to register with the US Internal Revenue Service (IRS) and report information to the Dutch tax authorities regarding US reportable accounts and accounts held by non-compliant foreign financial institutions. Non- US entities that do not qualify as financial institutions
must disclose their substantial US owners or certify that they have none. The Netherlands has also committed to the CRS, which requires financial institutions to identify their account holders. If an account holder is determined to be a tax resident of another country that partici - pates in the CRS, the financial institution must annu - ally report information about the account holder and the account. Automatic Exchange of Information BEPS Action 5 establishes an OECD framework for the mandatory exchange of information regarding specific categories of tax rulings. The Netherlands has committed to this framework. The information collected pursuant to BEPS Action 5 is exchanged bilaterally with the countries of residence of all related parties, the ultimate parent company and the immedi - ate parent company. Under the Directive on Administrative Cooperation, the EU also requires automatic exchanges of informa - tion on “advance cross-border rulings” and “advance pricing arrangements” between EU member states. Unlike BEPS Action 5, the scope of the EU Directive is not limited to specific categories of rulings. Only rulings and pricing arrangements relating solely to domestic situations or exclusively to the tax affairs of one or more natural persons, are excluded. The information to be exchanged under the EU Directive must be submitted to a central database accessible to all EU member states. UBO Register In response to the EU Anti-Money Laundering Direc - tive, the Netherlands has enacted the UBO Register Act, which establishes a register for the ultimate ben - eficial owners (UBOs) of certain corporate and other legal entities (the “UBO Register”). These entities are required to collect, maintain and register specific per - sonal information about their UBOs. Private limited companies, public limited companies, foundations, associations, mutual insurance associations, coop - eratives, limited partnerships and churches or spir - itual organisations incorporated or established under Dutch law are all subject to registration. Although the definition of a UBO varies by legal entity, an individual
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