Tax Plan 2025 adopted by the House of Representatives

The House of Representatives has adopted Tax Plan 2025. We set out the VAT and transfer tax measures, and look at the motion that puts the abolition of the reduced rate back in play.

Last week the House of Representatives adopted Tax Plan 2025. It is now for the Senate to decide on the bill. It contains the following VAT and transfer tax measures.

From 1 January 2026: multi-year adjustment for services relating to immovable property, such as renovation and maintenance, where the consideration is € 30,000 or more.

From 1 January 2026: abolition of the reduced VAT rate for:

• the provision of accommodation, other than providing camping facilities
• cultural goods and services, media and sport: art, lending digital and printed books, newspapers and magazines, providing opportunities to take part in sport and to bathe in a sports facility, admission to museums, music and theatre performances, admission to sporting events and demonstrations, and performances by artists. Cinemas and day recreation such as zoos and theme parks are excluded.

From 1 January 2026: reduction of the transfer tax rate from 10.4% to 8% for homes the acquirer will not use as their own long-term main residence, for instance acquisitions by housing associations and institutional and private investors.

Is the abolition of the reduced rate off the table?

The House adopted an amended motion by Van Dijk and others. It requires the incoming State Secretary for Finance to look, in consultation with the House and before the 2025 Spring Memorandum, for an alternative to abolishing the reduced rates. The Minister of Finance has undertaken to do so, and in doing so appears to have secured the majority needed in the Senate.

That undertaking suggests an alternative is being sought for the VAT increase on cultural goods and services, media and sport. The abolition of the reduced rate for accommodation therefore looks set to go ahead. The debate also indicates that the search will extend to VAT increases on other goods and services.

If no alternative with sufficient funding is found before the Spring Memorandum, the VAT increases in Tax Plan 2025 take effect as planned. They are therefore not off the table yet. We will keep you informed.