Dutch parliament deadlocked over 2026 tax hike for investors and savers

The Tweede Kamer, the lower house of Dutch parliament, seems to be deadlocked over an alternative to next year’s tax hike affecting investors and savers. Although several proposals have been put forward, none currently have sufficient backing.

VVD MP Wendy van Eijk summed up the situation during a debate on the 2026 tax plan: “We are hitting a dead end on a solution that could gain a majority in the Tweede Kamer.” She had contemplated a plan to increase taxes slightly for high earners, but because it was unlikely to succeed, she chose not to pursue it.

Delays in implementing a new system for taxing returns on capital have left a hole in the budget. The caretaker Cabinet aims to cover it by increasing the assumed investment return and cutting the tax-free threshold for investors.

Many parties in parliament are deeply concerned about the measure. It impacts not just investors, but also savers, self-employed people with private pension funds, and those who own, for instance, a holiday property. The already overburdened Tax Administration will also face an increased number of taxpayers.

Over the past few days, parties from left to right have put forward ideas to avoid the tax increase, but all faced opposition. To date, only ChristenUnie and SGP have filed a specific amendment, proposing to fast-track the phase-out of a tax advantage for those nearing full repayment of their mortgage. The lower house is set to vote next week on the tax plan and the submitted amendments.