The Kaag List: Dutch taxpayers are already paying more

On August 15, 2023, the Dutch Ministry of Finance published a document that would raise serious questions for Dutch taxpayers. The Fiscal Measures List. A document containing no fewer than 137 pages, published under the responsibility of then Finance Minister Sigrid Kaag.

It has become known informally as the Kaag List. And reading its contents makes it clear why it attracts attention. Fewer tax benefits, higher taxes on wealth, changes to inheritance tax and restrictions for business owners. Some of these measures have already become reality. Others remain possible policy options.

The big question is how much Dutch households will eventually pay.

Kaag signed off on the publication of a list full of tax proposals

First, the background. Kaag was Minister of Finance in August 2023. Together with State Secretary Marnix van Rij, she informed the House of Representatives about the fiscal measures list.

The Ministry described the document as technical support for political parties preparing their election programmes. Civil servants at the Ministry of Finance were responsible for its contents.

That distinction matters. Kaag did not personally write 137 pages of new taxes. But the list was published under her responsibility.

It contains proposals to abolish existing tax benefits, increase taxes and change how the tax burden is distributed.

And it did not remain just paperwork.

Several of these measures have already become reality

Look at the measures that have actually been implemented. Dutch households and business owners have already experienced changes.

Here are some examples.

• The home gift exemption disappeared: since January 1, 2024, parents can no longer make the former large tax free gift for a child's home purchase.
• The self employed deduction was reduced: it stands at just €1,200 in 2026.
• The SME profit exemption was reduced: from 14 percent to 12.7 percent.
• Business succession relief was restricted: rented property no longer qualifies for the relevant relief from 2024.
• The fiscal retirement reserve disappeared: entrepreneurs can no longer build retirement reserves using the former tax arrangement.
• Income averaging ended: people with fluctuating incomes can no longer use this arrangement.

These are not future scenarios. These are changes that have actually been implemented.

Box 3 shows how expensive the tax bill can become

For savers, investors and owners of second homes, Box 3 is perhaps the most sensitive issue.

In 2026, the tax rate is 36 percent. The tax free allowance is €59,357 per person and €118,714 for fiscal partners.

The Dutch Tax Administration also uses calculated returns. For other assets, the provisional assumed return in 2026 is 6 percent.

In numbers: Suppose you own €10,000 in investments above your tax free allowance. At an assumed return of 6 percent, that produces €600 in taxable return. At a 36 percent tax rate, you pay €216. You are being taxed on a calculated return, not necessarily the amount you actually earned.

That is exactly why Box 3 has become such a controversial subject. What happens when your investments barely generate a return, but the tax authorities still calculate a fictional return?

The Dutch Supreme Court has previously ruled that the old system violated human rights under certain circumstances. The government therefore had to provide compensation.

These are the other tax proposals in the original document

The original list goes much further than Box 3. Some of its proposals are particularly far reaching.

Below are the proposals in simple language. These are options in the original government document, not a list of laws that have all been passed.

1. Higher inheritance taxes

• Higher rates for larger inheritances.
• Different exemptions for beneficiaries.
• Changes to inheritance tax for children and grandchildren.

What does this mean? Families that have spent decades building wealth could face a larger tax bill when transferring it to the next generation.

2. Fewer tax benefits for entrepreneurs

• Further reductions or abolition of the self employed deduction.
• Abolition of the start up deduction.
• Abolition of the SME profit exemption.
• Fewer investment tax benefits.

What does this mean? Self employed people could keep less of their business profits.

3. More taxes on wealth

• Higher rates for large fortunes.
• Abolition of exemptions for green savings and investments.
• Changes to business succession relief.
• Different rules for borrowing from your own company.

What does this mean? Building and transferring wealth could become more expensive.

4. Fewer benefits for motorists

• Lower tax free mileage reimbursement.
• Abolition of certain vehicle tax exemptions.
• Changes to vehicle taxation.
• Expansion of the truck road charge.

What does this mean? People who depend on their cars for work or transport could be affected.

5. Higher costs for energy and consumption

• Changes to energy taxation.
• Removal of certain fossil fuel tax exemptions.
• New taxes on plastic.
• Changes to taxes on goods and services.

What does this mean? Households could also feel the impact indirectly through higher business costs.

The next Box 3 changes are approaching

Meanwhile, the government is working on a new Box 3 system. The proposed Actual Return Tax Act is intended to replace the current system.

The bill was passed by the Dutch House of Representatives on February 12, 2026. The Senate still has to consider it.

The intended introduction date is January 1, 2028.

What is at stake?

• Actual interest, rental income and dividends would be taxed.
• Increases in share values could also count each year.
• Losses could be offset under certain conditions.
• For certain assets, including real estate, value increases would generally be taxed when sold.
• The tax free wealth allowance would be replaced by a tax free income allowance.

Watch out: Under a system that also taxes unrealised gains, you could owe tax even if you have not sold your investment. The final rules depend on the legislation that is ultimately approved.

What could Dutch taxpayers face over the coming years?

If future governments adopt more proposals from the list, possible consequences include:

• Higher taxes on inheritances.
• Fewer tax benefits for self employed workers.
• Less tax relief on certain investments.
• Higher taxes on wealth.
• Fewer ways to transfer wealth tax efficiently.
• Potentially higher transport and energy costs.
• New tax rules for property and investments.

These are possible consequences, not confirmed future measures. They depend on political decisions.

The real question is how many more proposals will become law

The Kaag List is not a law book. It is an overview of possible tax measures. The Ministry itself warned that the measures cannot simply be added together and that some proposals are mutually exclusive.

Still, it is striking how many of these subjects have since appeared in actual tax legislation.

A document published in 2023 to help political parties prepare their election programmes shows just how many ways the government has considered reducing tax benefits and generating additional revenue.

And that is where the political debate begins.

Governments need tax revenue. But when the tax burden increasingly shifts towards savers, entrepreneurs, investors and families trying to transfer wealth, another question arises: how much room will people ultimately have to build wealth for themselves?

Questions worth asking

• Which proposals from the Kaag List have actually been implemented?
• Which measures are still awaiting political decisions?
• How much tax will you pay on savings, shares and property?
• Is it becoming increasingly difficult for entrepreneurs to build wealth?
• How much of the wealth you have accumulated will eventually remain for your children?

This article is intended for political and tax education purposes only, not as financial advice.

Sources

• Ministry of Finance, Fiscal Measures List August 2023
• Dutch Government, Parliamentary letter on the Fiscal Measures List, August 15, 2023
• Dutch Government, Main tax changes 2024
• Dutch Tax Administration, Self employed deduction 2026
• Dutch Government, Types of income tax and Box 3
• Government legislation calendar, Actual Return Tax Act Box 3
• Ministry of Finance, Fiscal Key Table 2026