Written by
Sara
Category
Tax changes
✔ Box 1: The tax rates are being revised. Three bands instead of two:
Up to €38,441 → 35.82%
From €38,441 to €76,817 → 37.84%
From €76,817 → 49.5%
✔ Box 2: Tax rate on dividend:
Up to €67,804 → 24.5%
From €67,804 → 31%
✔ Box 3: The tax rate remains 36%. The deemed return and debt threshold will be set after the end of calendar year 2025.
SME profit exemption: Reduced to 12.70%.
Business Succession Scheme (BOR): Continuation requirement reduced from 5 to 3 years. The exemption changes from 2026.
Mandatory Basic Disability Insurance (BAZ)
✔ Premium: 6.5% of income with a maximum of €195 per month. At lower income the premium is proportionally lower.
✔ Benefit: 70% of income, up to a maximum of 100% of the minimum wage.
✔ Mandatory for: All self-employed entrepreneurs with profit from business (income tax entrepreneurs), including self-employed professionals in a gift circle or bread fund.
✔ Not mandatory for: Director-shareholders, result earners, life partners who work in their partner's business.
✔ Planning: The bill will likely go to the House of Representatives in spring 2025 and could take effect from 2027.
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Other important changes
✔ Expat scheme: Deduction percentage of 27% and increased salary threshold of €50,436 from 2027.
✔ Interest deduction restrictions: Relaxed from 20% to 25%.
✔ Debt forgiveness profit exemption: Relaxed for companies with losses above €1 million.
✔ Gambling tax: Rising to 34.2% in 2025 and 37.8% in 2026.
✔ Net metering scheme for solar panels: Abolition from 2027.
✔ Transfer tax: Reduction to 8% for properties that are not a primary residence from 2026.