The Dutch government is introducing significant tax relief for entrepreneurs as part of its 2025 Spring Memorandum.
The announcement comes in an attempt to strengthen the country’s economic engine and improve the business climate for both small enterprises and large companies.
Minister of Economic Affairs Micky Adriaansens Beljaarts says, “I am proud that the tax relief measures that the government previously implemented have held up. This year, the fine has hardly been passed on to entrepreneurs, while in the past, this was often the case. We have spared entrepreneurs as much as possible so that they can continue to do what they are good at: doing business. This is good for our economy and our earning capacity.”
The key element of the Spring Memorandum is a new tax scheme designed to support employee participation in startups and scale-ups.
Developed jointly by Minister Beljaarts of Economic Affairs and State Secretary Van Oostenbruggen of Finance, the initiative aims to make it easier for innovative companies to attract and retain top talent by offering stock options as part of compensation packages.
Why this tax reformation?
Currently, Dutch startups and scale-ups are often unable to offer internationally competitive employment conditions. As a result, they are less able to attract and retain talent.
Stock options are the most commonly used form of employee participation in the startup sector worldwide.
Owning shares ensures that employees have a stronger bond with the company and are less likely to leave.
In addition, the startup and scale-up ecosystem in the Netherlands is strengthened because employees can reinvest the proceeds in the next generation of innovative companies.
Employee participation tax scheme
Under the proposed scheme, employees of startups and scale-ups will be taxed at a lower rate—down from 49.5 per cent to a maximum of 32.17 per cent—and only once they sell their shares, rather than when the shares become tradable.
The changes are expected to come into effect on 1 January 2027, pending legislative approval.
Minister Beljaarts, says, “A tax scheme for employee participation is a long-cherished wish and a real game changer for startups and scale-ups. This will improve the Netherlands’ position in the European leading group of countries with the best ecosystems for startups and scale-ups.”
Currently, only 19 per cent of Dutch startups grow into scale-ups, below the European average of 22 per cent. The government sees access to talent as the primary bottleneck.
The new tax scheme aims to address this, enhancing the long-term resilience and innovative power of the Dutch economy.
“In this way, employees can share in the success of the company, and startups and scale-ups can attract and retain talented people. Those same employees often invest in other startups themselves later on, giving the entire ecosystem a boost. An important step in our commitment to strengthen the entire startup climate in the Netherlands,” says Beljaarts.
