Luxembourg: the 2027 budget cuts corporate tax to 15% (22.80% combined in Luxembourg City), abolishes the 17-year loss carry-forward limit and extends the speculation period to 12 months; the single tax class vote is set for 27 October. Netherlands: the box 3 funding plan slips to the end of October, a majority eyes paper gifts, and the self-employed bill is in consultation until 29 October. Belgium: budget talks stall over VAT, and Moody's holds the rating at A1.
The week in one paragraph
Luxembourg put its tax cuts into law: the 2027 budget brings corporate tax down to 15%, scraps the 17-year limit on loss carry-forward and lengthens the speculation period on share gains to 12 months, while the single tax class heads for a vote on 27 October. In the Netherlands the box 3 plan still has no funding: the cabinet's alternative slips to the end of October, and a majority wants to pay for it by curbing paper gifts rather than through the VVD's cheaper box 2. Belgium's budget is stuck on a VAT reform the MR will not accept, as Moody's holds the rating at A1 and borrowing costs rise.
Netherlands
Box 3: no funding plan before the Tax Plan debate
What happened. The cabinet confirmed it will not have an alternative way to pay for the box 3 changes ready before the Tweede Kamer starts its substantive debate on the Belastingplan 2027 on 12 October; a new plan is now expected at the end of October. Until then the proposal on the table is unchanged: the box 3 tax-free amount falls from EUR 59,357 to EUR 30,846 per person in 2027 and the deemed return on other assets rises to 7.87%. The amending bill that moves box 3 to a tax on realised gains on shares, bonds and options from 2028 went to the Council of State for urgent advice on 2 October.
Why it matters. The 2027 box 3 bill for investors depends on a plan nobody has seen yet, and the 2028 regime still has to pass both chambers before 31 December. Heinen has ruled out more borrowing, a higher inheritance tax and abolishing mortgage interest relief as ways to fill the gap.
What to do. Keep 2026 year-end decisions neutral: do not move assets between box 3, your B.V. or a partner on the basis of the current figures. Revisit once the revised proposal is published. Read our note: Dutch box 3 2026–2028 →
Paper gifts or a cheaper box 2: the coalition splits on funding
What happened. A broad Tweede Kamer majority asked the cabinet to look at inheritance and gift tax to pay for sparing small savers. ChristenUnie MP Pieter Grinwis proposes curbing the “paper gift” (schenking op papier), under which parents give money to their children on paper and owe it until death, reducing the estate subject to inheritance tax. D66 and CDA back the idea; the VVD rejects it and prefers the temporary cut in the top box 2 rate from 31% to 29.2% for 2027–2030, which brings dividends forward.
Why it matters. Families using paper gifts in their estate planning may lose part of the benefit. For director-shareholders, the lower box 2 rate only applies above EUR 69,607 of income (24.5% below that); on a EUR 100,000 dividend the saving is roughly EUR 600.
What to do. Do not sign new paper-gift deeds without checking the outcome of the debate. Director-shareholders should model the actual saving before postponing dividends to 2027. Read our note: Inheritance tax in the Benelux →
Source: Taxence, 7 Oct 2026, De Zaak, week 41
Self-employed bill: three clients for the safe harbour
What happened. The draft Zelfstandigenwet is in public consultation until 29 October, with entry into force planned for 1 January 2028. A contractor gets a “safe harbour” only if they pass a self-employment test (Chamber of Commerce and VAT numbers, a separate business account, at least three clients across the current and previous year, and a minimum annual spend on cover such as disability insurance and pension) and a work-relationship test for each assignment. In a Knab poll of 1,068 self-employed people, 53% opposed the bill.
Why it matters. Companies that rely on Dutch freelancers face reclassification risk where a contractor misses one criterion. Failing the test does not automatically make someone an employee, but the safe harbour is lost from that moment.
What to do. List your freelancers and check them against the criteria now. If the three-client rule hits your business model, respond to the consultation before 29 October. Read our note: Hiring in Luxembourg or the Netherlands →
Source: SRA, Oct 2026, De Zaak, week 41
Luxembourg
Budget 2027: corporate tax to 15%, no more 17-year limit on losses
What happened. Finance Minister Gilles Roth tabled the 2027 budget (bill 8800) and the 2026–2030 multi-year plan (bill 8801). From tax year 2027 the corporate income tax rate falls from 16% to 15% and the reduced rate from 14% to 13%, with the reduced band raised to EUR 200,000 and the intermediate band moved to EUR 200,000–250,000. The combined rate in Luxembourg City falls from 23.87% to 22.80%. The 17-year limit on carrying forward tax losses is abolished, including for losses incurred since 2017. The investment tax credit rises from 18% to 21%, and from 6% to 9% for digital and green investments. A gift-tax exemption for business transfers was announced, with details to follow.
Why it matters. A lower rate and unlimited loss carry-forward improve the after-tax position of Luxembourg holdings and trading companies, particularly those with historical losses that would otherwise have expired.
What to do. Review loss schedules and 2027 profit forecasts; losses you had written off as expiring may now be usable. Founders planning a succession should wait for the detail of the business-transfer exemption. Read our note: Luxembourg tax calculator →
Budget 2027: what changes for investors and individuals
What happened. The speculation period for gains on movable assets, including carried interest, doubles from 6 to 12 months. From tax year 2026, accelerated depreciation on new rental housing rises from 4% to 6% where the depreciation base does not exceed EUR 600,000, and buildings up to six years old qualify. The income tax scale is indexed by about 2.5% for 2027. From 2028, tax on real estate capital gains is to be withheld at the time of the transaction. Separately, bill 8782 sets out the tax treatment of employee stock options, with a regime for young innovative companies. The government forecasts a general government deficit of 0.6% of GDP in 2027 and debt below 30% of GDP.
Why it matters. Short-term trading gains and carried interest realised within a year will be taxed as speculative income. Residential property investors get a stronger depreciation incentive, but withholding on sale from 2028 changes how property disposals are settled.
What to do. Check the holding period on planned share disposals and carry structures. Property investors should time new rental acquisitions with the 6% rate in mind. Read our note: Property companies in Luxembourg and the Netherlands →
Source: PwC Luxembourg, 9 Oct 2026, Government of Luxembourg, 7 Oct 2026
Single tax class U: vote set for 27 October
What happened. Déi Lénk announced it will vote for the bill replacing tax classes 1, 1a and 2 with a single class from 1 January 2028, despite criticising the government's wider tax policy. The plenary debate and vote are scheduled for 27 October. The government estimates the cost at EUR 850 million in 2028 and EUR 910 million in 2029.
Why it matters. With opposition support on top of the CSV-DP majority, adoption looks secure. Expats and cross-border workers will see their withholding change from 2028.
What to do. No action before the vote. Couples now in class 2 should compare before opting into the new class: the switch is irreversible. Read our note: Luxembourg personal income tax →
Source: Paperjam, Oct 2026
Belgium
Budget talks stall over VAT; 13 October deadline in doubt
What happened. Prime Minister Bart De Wever proposed raising the standard VAT rate from 21% to 22% and merging the 6% and 12% rates into a single 9% rate, with targeted cuts such as lower VAT on new-build homes. The MR refused, citing cross-border shopping; the core cabinet on 10 October ended without agreement and talks continued bilaterally. The coalition needs EUR 10 billion by 2029. On 9 October about 30,000 people joined a union strike and march in Brussels against the cuts.
Why it matters. A VAT reform would reprice almost every consumer-facing business in Belgium, and the rest of the package (taxes on capital, labour costs, the 2026 capital gains tax) remains open while the parties disagree.
What to do. Keep pricing, dividend and reorganisation decisions on hold until a text is published. Businesses selling at 6% or 12% should run their margins at 9% as a scenario. Read our note: Belgium vs Netherlands vs Luxembourg →
Source: Brussels Times, 6 Oct 2026, Paris Match Belgique, 11 Oct 2026
Moody's holds Belgium at A1 as interest costs climb
What happened. Moody's left Belgium's rating at A1 after April's downgrade, forecasting growth of 0.7% this year and a deficit of about 5.3% of GDP. At the end of September Belgium paid 4.35% on 10-year bonds, 85 basis points more than at the start of the year. The National Bank and the Debt Agency briefed ministers on 7 October that debt-interest pressure could build from 2029 or sooner without consolidation; De Wever repeated the warning in Parliament the next day.
Why it matters. Rising funding costs are the argument for front-loaded tax measures. The longer the budget stalls, the higher the chance of revenue measures that reach companies and investors.
What to do. Factor a higher-tax scenario into 2027 planning for Belgian companies and holdings, and keep financing terms under review. Read our note: Belgian residents with a Luxembourg company →
Dates to watch
| Date | Country | What |
|---|---|---|
| 12 October | Netherlands | Tweede Kamer debate on the Belastingplan 2027 begins |
| 13 October | Belgium | State of the Union address; target date for the federal budget |
| 15 October | Belgium | Draft budget due to the European Commission |
| 27 October | Luxembourg | Plenary debate and vote on the single tax class (bill 8676) |
| Around 28 October | Netherlands | Council of State advice on the box 3 amending bill expected; new funding plan due end of October |
| 29 October | Netherlands | Consultation on the Zelfstandigenwet closes |
| 2 November | Netherlands | Q3 2026 VAT return and payment due |
| 12 November | Netherlands | Planned Tweede Kamer vote on the Belastingplan 2027 |
| Mid-December | Luxembourg | Expected vote on the 2027 budget (bill 8800) |