Since the start of 2026, the Dutch tax authorities have adopted a significantly more accommodating stance regarding the tax treatment of property investments made by foreign pension funds in the Netherlands – particularly with regard to tax exemptions and refunds. There are also signs that conditions are set to improve even further: according to the government’s plans, a key decree on tax exemptions for pension funds is due to be published by the end of 2026. PrimeraAdvisors expects this to provide a tax incentive for foreign institutional investors looking to invest in the Dutch property market.
Since the start of 2026, the tax authorities have been taking a more pragmatic and transparent approach
Firstly, regarding the tax authorities’ new approach: since the start of the year, various opinions published in February and August 2026 by the Dutch tax authorities’ expert committees (‘Knowledge Groups’) have provided greater clarity. The key issue here is whether foreign pension schemes are comparable to their Dutch counterparts and can therefore benefit from the same tax advantages.
Thomas Gütle, Managing Director of PrimeraAdvisors, comments: “These rulings are binding on Dutch tax inspectors and reflect an increasingly pragmatic and practice-oriented approach to assessing comparability. The rulings published in February 2026 are of particular significance to German pension schemes, such as professional pension funds. Furthermore, several binding advance tax rulings have already been issued in favour of German investors in the course of 2026.”
However, practical restrictions may still arise when investing via vehicles that are regarded as non-transparent for Dutch tax purposes. This applies in particular to German investment funds, which have generally been classified as non-transparent since 1 January 2025.
Background: Under certain conditions, Dutch pension funds are exempt from Dutch corporation tax (Corporate Income Tax – CIT). This also entails – again subject to certain conditions – exemptions or refunds in respect of dividend withholding tax (Dividend Withholding Tax – DWT).
In principle, foreign pension schemes may also benefit from these tax advantages – regardless of their legal form, including, for example, those organised as foundations – provided that their structure and activities are comparable to those of eligible Dutch pension funds.
Twelve cumulative conditions, set out in a tax decree (beleidsbesluit subjectieve vrijstelling Vpb), are decisive in this regard. For other foreign foundations, a refund of dividend tax under Article 10 of the Wet DB 1965 may be considered, subject to specific, more restrictive conditions.In the past, the comparability criteria relevant to this were sometimes interpreted restrictively. It was therefore often difficult for foreign entities to demonstrate the necessary tax equivalence and to obtain the corresponding benefits.
A new decree introducing improvements is expected later this year
What other changes are planned for foreign property investors in the Netherlands before the end of the year?
Gütle commented: “In September 2026, the government announced that the Dutch tax authorities would clarify and modernise the conditions for the exemption of pension funds in a revised decree. The aim is to publish the decree by the end of the year and bring it into force immediately.”
Background: In its response to a parliamentary question, the Government explicitly emphasised the importance of foreign institutional investors, such as pension funds, in financing the urgently needed construction of new housing.
Gütle continued: “We therefore expect that the announced revision of the relevant tax decree will bring further clarifications and improvements before the end of this year.”
The Benelux region is becoming increasingly popular with institutional investors
The Benelux region has become significantly more attractive to institutional property investors compared with the previous year. According to the INTREAL investor survey of 13 October 2026, 61 per cent of the German institutional investors surveyed cite the Benelux region as their preferred European target region – a significant increase from 40 per cent in the previous year. Of these, the Netherlands in particular is likely to benefit as the region’s largest property market. In addition to attractive fundamental conditions, including high levels of transparency and liquidity, improvements in the tax regime are also encouraging greater involvement by international institutional investors in the Dutch property market.
