The cabinet wants the Netherlands to remain attractive for all entrepreneurs, from the baker on the corner to the largest companies. Entrepreneurs are the engine of our economy. They ensure that we continue to earn money together, with which we can pay for our social facilities, such as education, healthcare, and infrastructure. Whereas in the past there was often a focus on increasing the burdens for entrepreneurs, this cabinet chooses a more balanced distribution in the Spring Memorandum 2025.

Minister Beljaarts (Economic Affairs): “I am proud that the tax reliefs previously implemented by the cabinet have held up. The bill has not been passed on to entrepreneurs this year, while it often was in the past. We have maximally spared entrepreneurs now, so they can continue to do what they are good at: entrepreneurship. This is good for our economy and our earning capacity.”

The earning capacity of the future also depends on the success of innovative companies. With a new tax scheme, the cabinet makes it more attractive for employees to share in the growth of the company alongside their salary with stock options. The tax scheme for employee participation is included in the Spring Memorandum 2025 of the cabinet at the proposal of Minister Beljaarts of Economic Affairs and State Secretary Van Oostenbruggen of Finance.

Dutch startups and scale-ups often cannot offer internationally competitive employment conditions. As a result, they struggle to attract and retain talent. This also hinders further scaling. Minister Beljaarts (Economic Affairs): “A tax scheme for employee participation is a long-standing wish and a real game changer for startups and scale-ups. This improves the Netherlands position in the European top group of countries with the best ecosystems for startups and scale-ups.”

Internationally, stock options are the most commonly used form of participation in the startup sector. Having shares ensures that employees have more attachment to the company and are less likely to leave. Additionally, it strengthens the startup and scale-up ecosystem in the Netherlands because employees can reinvest the returns in the next generation of innovative companies. This sets off a flywheel effect.

The ministries of Economic Affairs and Finance have been working for a long time to make this tax scheme possible. It is also a long-standing wish of the sector to attract talent and allow them to share in the growth.

The proposal for the new tax scheme changes the tax liability for employees of startups and scale-ups in two areas: the tax rate for stock options and the timing of the tax liability. International comparative research has shown that the Netherlands is still lagging behind in these areas.

Employees of startups and scale-ups will pay less tax on their stock options. Instead of the high rate of 49.5% in box 1, they will effectively pay a maximum of 32.17%. They will also only pay tax when they sell their shares. Currently, this must already be done at the moment the shares become tradable. The proposal for this tax scheme is now being further developed into a legislative proposal. The intended start date is January 1, 2027.

Successful startups and scale-ups are crucial for a vital economy. They contribute to the innovative strength of the Netherlands, drive productivity growth, and create employment. Many startups and scale-ups also contribute to solving societal challenges, for example in healthcare, and are crucial for our economic resilience.

Currently, the percentage of startups that successfully grow into scale-ups is 19%, below the European average of 22%. Compared to non-European countries, these percentages are even further apart. The biggest obstacle is access to talent. The proposal for a new tax scheme for employee participation addresses this obstacle and improves access to talent for startups and scale-ups.