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Prinsjesdag - Budget Day plans for 2027

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On 15 September 2026 (Prinsjesdag) the government announced the plans for the coming year in the traditional 'troonrede' (Speech from the Throne), delivered by King Willem-Alexander. In this year's speech, international talent was mentionned for the first time, referred to as 'Scare knowledge workers from abroad' highlighting the importance of expats for our economy. The government invests in a new talent strategy in key sectors such AI, digitalisation, energy and biotechnology. You can read the entire speech on the offical website of the Dutch governement. 

''Tomorrow’s labour market also requires us to attract, train and retain top talent in crucial sectors such as AI, digitalisation, energy and biotechnology. That talent can be found everywhere: from institutions of secondary vocational education and higher professional education to universities. To this end, in the summer the government presented its Talent Strategy. This will be developed further in the coming period, in consultation with educational institutions, businesses, students and other stakeholders. Naturally, there must be space in a modern labour market for talented students and scarce knowledge workers from abroad. But we will combat the exploitation of labour migrants.''

 

We made a summary of the plans for 2027 for you (these plans are subject to approval by the House of Representatives and the Senate):

Good to know: The government coalition depends on a minority in both chambers of parliament. In the coming days the government needs to find a majority and this may result in changes to the budget.  The main budget proposals will be debated in Parliament with Prime Minister Rob Jetten and Finance Minister Eelco Heinen over the coming days, where opposition parties will attempt to negotiate further amendments before final voting.
 

1. Income tax changes for workers, freelancers and businesses

  • Income tax rates in the first and second tax bands will drop by a minor 0,06 percentage points.
  • People earning over 80.000€ gross face a collective tax hike of 750 million Euros. 
  • The tax-free commuting allowance (reiskostenvergoeding) increases by 0,02€ to 0,25€ per km.
  • Self-employed workers lose the starter's tax deduction (startersaftrek), which is being completely scrapped.

  • Lower taxation on share options for start-ups and scale-ups. It will be easier to reward employees with share options.
     

    Additional information on changes to the 30% ruling
    As part of the Dutch government's previous 2026 budget plans, the 30% ruling will be reduced to 27% from 1 January 2027. This means eligible international employees will be able to receive up to 27% of their salary tax-free, instead of the current 30%. In addition, the minimum salary requirements for the scheme will increase, which may result in fewer employees qualifying for the benefit. The previously proposed phased reduction (30%-20%-10%) will not be implemented.
     

2. Healthcare & living costs

Everyday expenses will see several targeted tax adjustments. Key changes for consumers and travellers include:

  • Tap water tax increases by 0,10€ per 1.000 litres.
  • Fuel tax relief on petrol and diesel remains extended, with the diesel discount phase-out postponed until 2028.
  • Long-distance flight tax is capped at 59€ from Schiphol airport.
  • Compulsory health deductible (eigen risico) increases to 400€, while basic monthly premiums are expected to rise by around 12€ on average.
  • Residents will pay higher taxes on tap water, alcohol, flowers, and plants, while petrol excise discounts remain extended.
     

3. Housing & climate investments

To address shortages, housing corporations will be exempted from EU anti-tax-avoidance rules, costing the state up to 175 million Euros annually but unlocking 6 billion Euros in loans for social housing. Private developers constructing mid-market rental homes can also claim up to 10.000€ per unit between 2029 and 2033.

Defence spending increases to nearly 29 billion Euros, including 3,1 billion Euros in direct military aid to Ukraine. Additionally, 1,3 billion Euros is allocated for North Sea carbon dioxide storage alongside sustainability grants for farmers.
 

4. Education

  • Primary and secondary eduction benefit from 668 million Euros education injection with a strong emphasis on mathematics, Dutch language, media literacy and talent development. Additional funding will be used to tackle the teacher shortages.
  • 80€ million extra per year to help researchers apply for European funding.
  • Additional structural funding for practice-oriented research:
    • 68€ million for universities of applied sciences (HBO);
    • 17€ million for vocational education (MBO);
  • 132€ million annually for university sector plans focused on strategically important fields.

    Good news for universities and international education:
  • Earlier planned cuts affecting the recruitment of international talent are being reversed.
  • Around 24.9 million Euros will be available in 2027 through the Talent Strategy budget to support this.
  • A 50€ monthly grant boost will be available for non-resident students starting in 2028.

     

Which Dutch budget cuts were delayed or scrapped?

Operating without a parliamentary majority, the Jetten cabinet had to delay or completely abandon several controversial spending cuts to secure support from opposition parties.

Postponed policy measures:

  • Box 3 wealth tax reform: Major updates to the asset tax system remain parked in the Senate until spring 2027 due to coalition disagreements over taxing unrealised versus realised capital gains.
  • Unemployment benefit cuts: Proposals to shorten the maximum unemployment benefit (WW) duration from two years to one year have been delayed until 2029.
  • Healthcare deductible increase: The planned 60€ hike to the health insurance deductible (eigen risico) is delayed by a year, rising only modestly with inflation from 385€ to 400€ in 2027.
  • Employer transition payments: Scrapping the transition payment compensation (compensatie transitievergoeding) for all employers is delayed until 1 January, 2028.

Scrapped proposals:

  • Accelerated state pension age hike: The proposal to raise the state pension (AOW) age at a faster pace was fully abandoned.
  • Daily benefit payout cap: Reductions to the maximum daily wage payout for maternity and invalidity benefits, dubbed the "maternity penalty" by trade unions, were scrapped.
      

Please find the whole list of the latest amendments and announcements in particulary for entrepreneurs here.