Rising corporate tax threatens 100,000 new social homes in the Netherlands

Dutch housing corporations are warning that their corporate tax bills could more than double over the next few years, potentially hampering the construction of new social housing. The sector, represented by umbrella organization Aedes, says the tax is intended for multinationals and unfairly hits non-profit housing providers, NRC reported.

Aedes calculated that Dutch housing corporations paid 700 million euros in corporate tax this year. If they meet government housing construction agreements, that figure could rise to 1.5 billion euros by 2029.

“The increasing tax burden means less money is available to invest in homes,” Aedes said. “It becomes increasingly unlikely that corporations can meet their part of national housing agreements, putting the country’s goal of 100,000 new homes per year at risk.”

Housing corporations rely mainly on rent from social housing for income and reinvest any surplus to renovate or improve their properties. Despite operating without profit motives, they still pay corporate tax, including under the EU’s 2019 Anti-Tax Avoidance Directive (ATAD), designed to curb multinational tax avoidance. The directive limits how much interest on borrowed money companies can deduct, affecting housing corporations that rely heavily on loans for new construction.

ATAD’s share of corporate tax for the sector has grown sharply, from 30 percent two years ago to more than half in 2025. Aedes warns that this creates a paradox: corporations are fiscally penalized for investing in new homes, even as the government expects them to do so. The organization estimates that meeting housing agreements will require 60 billion euros in loans, potentially raising corporate tax by 460 million euros annually.

Today, high construction and maintenance costs, along with rising interest rates, leave many corporations financially constrained. The abolition of the landlord levy in 2023 helped, but prior years’ extra taxes had already reduced social housing construction. Corporations are now tasked with both building new social homes and improving the energy efficiency of existing housing.

Aedes is calling for an exemption from corporate tax or, at a minimum, relief from ATAD provisions. Chairman Liesbeth Spies said removing the tax could free up 40 billion euros for investment, enough to build roughly 150,000 social homes.

Earlier this year, several large corporations filed objections with the Dutch Tax Authority, potentially setting up a legal challenge to the current policy. Whether the incoming coalition parties—D66, CDA, and VVD—will heed Aedes’ call remains uncertain, as budgets currently account for hundreds of millions in annual corporate taxes.