If you are planning to invest in new assets exceeding EUR 2,500 (2026), it is worth prioritising environmentally friendly assets and/or investments that promote energy efficiency and sustainability. By choosing sustainable investments, you stay one step ahead in business while also unlocking considerable tax benefits through several Dutch incentives available for companies that invest in qualifying assets.
The most recurring Dutch investment incentives are the Energy Investment Allowance (EIA), the Environmental Investment Allowance (MIA) and the Random Depreciation of Environmental Investments (VAMIL).
Tax facilities
Energy Investment Allowance (EIA)
Under Dutch tax legislation, businesses investing in energy‑saving or sustainable energy assets can benefit from a tax deduction (EIA) amounting to 40 per cent of the investment costs in energy-efficient or sustainable assets costing over EUR 2,500, reducing taxable profit and accelerating return on investment (ROI). This deduction is additional to the standard depreciation scheme applicable in the Netherlands. As a result, energy costs will be reduced, and an average advantage of around 10 per cent may be achieved. Interested in more information about the EIA? Download our whitepaper.
Environmental Investment Allowance (MIA)
The MIA enables companies to deduct up to a maximum of 45 per cent of the investment amount from their taxable result. The percentage depends on the environmental impact and prevalence of the asset. In the most favourable scenario, the financial benefit can amount to 14 per cent of the initial investment. Want to learn more about the MIA? Download our whitepaper.
Random Depreciation of Environmental Investments (VAMIL)
The VAMIL scheme applies to environmentally friendly investments and allows 75 per cent of the investment to be depreciated at any chosen moment. This provides the additional advantage of applying depreciation strategically in profitable years. Using the facility to its full extent may result in substantial cash‑flow benefits.
The MIA and the VAMIL are two impactful investment facilities that support your green initiatives and can be applied simultaneously to qualifying investments.
Small‑scale Investment Allowance (KIA)
Another incentive designed to support entrepreneurs making smaller investments in business assets is the KIA. If your total investments in a fiscal year fall between EUR 2,900 and EUR 398,236 (2026), you can deduct a percentage of the investment amount from your taxable result. The exact deduction depends on the total amount invested within the fiscal of financial year, with the highest benefits applying to investments within a certain range.
Timing of reporting investments
It is essential to report the investment to the competent authority within three months after the investment date in order to qualify for the MIA or EIA. Missing this strict deadline means losing out on substantial tax advantages.
Confluence with other facilities
Under Dutch tax legislation, taxpayers may combine the EIA and the KIA or the MIA/VAMIL and the KIA. However, it is not permitted to apply both the MIA/VAMIL and the EIA to the same asset. It is therefore important to assess which investment scheme is the most beneficial in specific circumstances.
In some cases, incentives such as the EIA can deliver noteworthy financial benefits, especially where certain MIA or VAMIL limitations apply (for example, for investments in categories C/D/E/G of the Environmental List). Please note that combining these options requires careful tax coordination, as some facilities may affect one another. By strategically applying the rules, you can maximise your investment returns.
Innovative fiscal facilities
Promotion of research and development (WBSO)
The Netherlands also offers competitive (fiscal) incentives to promote innovation. Central to R&D support is the so-called WBSO-facility (Wet bevordering speur- en ontwikkelingswerk), which reduces wage tax and social security contributions by 36% on the first EUR 380,000 of qualifying R&D labor costs (50% for start-ups). Applications to the Netherlands Enterprise Agency (RVO) must be submitted before or shortly after starting R&D activities, with flexible multiple submissions possibilities per year. The program is available across a broad range of sectors, provided the work meets the technical R&D criteria.
Innovation Box
Complementary to WBSO, the so-called Innovation Box allows profits derived from approved R&D activities to be taxed at a reduced effective corporate tax rate of only 9% (instead of the top-rate of 25.8%), amplifying the incentive to innovate and commercially scale knowledge-intensive products.
Unlock your benefits
Sustainable investments do not only benefit society as a whole, they also strengthen the long‑term value of companies. However, determining the right options and optimising your approach requires specialist knowledge and expertise.
Together, these incentives can significantly reduce both the cost and tax burden of innovation-driven and sustainable investments, positioning the Netherlands as a compelling location for forward-thinking companies.
Our team is ready to help you navigate tax‑efficient strategies tailored to your needs. Contact us today to ensure you are taking full advantage of the available opportunities and contribute to a sustainable future for your business.
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