Dutch Coalition Clashes Over Wealth Tax Reform
Dutch coalition parties are divided over how to finance a multi-billion-euro shortfall caused by planned wealth tax reforms for 2028.
Dutch coalition parties are divided over how to finance a multi-billion-euro shortfall caused by planned wealth tax reforms for 2028.
Driving the news: The cabinet wants to tax savings, investments, and second homes under Box 3 only after assets are sold rather than levying annual taxes on paper asset growth. Shifting to this capital gains tax creates a temporary hole of billions of euros in state revenues.
State of play: ChristenUnie proposed curbing tax benefits on paper gifts, a practice used to lower inheritance taxes, which CDA, D66, and a parliamentary majority support. VVD parliamentary leader Brekelmans rejected altering gift rules, advocating instead to lower Box 2 rates so entrepreneurs withdraw money from businesses to temporarily boost treasury income.
Implementation hurdles: Raad van State (Council of State) confirmed it will miss a 12 October parliamentary deadline for formal advice, with delivery expected on 19 October at the earliest. Dutch banks also warned they cannot update computer systems in time to pre-fill client returns in 2028, while Belastingdienst (Dutch tax authority) faces computer constraints that could delay planned 2030 disability insurance rules for freelancers.
By the numbers:
- Delaying the reform past 2028 will cost the treasury €3.5 billion per year in lost tax revenue.
- Parliament previously rejected cabinet ideas to tax 1.5 million investors starting at €30,000 next year and to tax profits over €1,000 from 2028.
- A broad parliamentary majority opposes a separate €8 billion income tax increase intended to support government finances.
