Germany vs Netherlands taxes (2026): income, Box 3 and company tax

Germany vs Netherlands tax rates at a glance

Tax	🇩🇪 Germany	🇳🇱 Netherlands
Income tax	Basic allowance: EUR 12,348 Entry rate: 14% Top rate: 45% Solidarity surcharge: 5.5% Church tax: 8% / 9% Employee pension, unemployment, health and care contributions: Capped	Bracket 1: 35.75% Bracket 2: 37.56% Bracket 3: 49.50% National insurance in bracket 1: Included 30% ruling: If eligible
Corporate tax	Corporation tax: 15% Solidarity surcharge: 5.5% Trade tax base rate: 3.5% Trade tax effective range: 7% - 20.3% DMTT / Pillar Two: 15%	Profit up to EUR 200,000: 19% Profit above EUR 200,000: 25.8% Participation exemption: Often available Domestic dividend WHT: 15%
Capital gains tax	Securities gains tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Saver allowance: EUR 1,000 / EUR 2,000 Private-sale holding period: 1 year / 10 years	Box 2 lower rate: 24.5% Box 2 higher rate: 31% Box 2 threshold: EUR 68,843 Portfolio / Box 3: 36% on deemed return Business gains: Box 1 rates
Dividend tax	Dividend withholding tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Annual saver allowance: EUR 1,000 / EUR 2,000	Domestic dividend WHT: 15% Box 2 lower rate: 24.5% Box 2 higher rate: 31% Portfolio route: Often Box 3
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Box 3 tax rate: 36% Box 3 tax-free allowance: About EUR 59,357 Classic all-assets wealth tax: Not used Primary residence: Generally outside Box 3
Inheritance / estate tax	Tax class I: 7% - 30% Tax class II: 15% - 43% Tax class III: 30% - 50% Tax-free allowances: EUR 20,000 - EUR 500,000	Partners and children: 10% / 20% Grandchildren: 18% / 36% Other beneficiaries: 30% / 40% Higher-rate threshold: About EUR 158,669 Partner exemption: EUR 828,035
VAT / GST / sales tax	VAT: 19% / 7%	VAT: 21%

Who wins on each tax

Personal income taxGermany

Germany's 45% top rate is below the Netherlands' 49.5% Box 1 top rate.

Corporate taxNetherlands

The Netherlands levies 19% on the first EUR 200,000, while Germany's combined burden often nears 30%.

Capital gains taxGermany

Germany generally taxes securities gains at 25% plus solidarity surcharge after a EUR 1,000 saver allowance; Dutch portfolio investments are usually taxed under Box 3's deemed-return system, while a 5% or larger holding is taxed in Box 2 at 24.5% or 31%.

Wealth taxGermany

Germany has no net wealth tax; the Netherlands has no single net-worth rate but taxes deemed returns on many savings and investments in Box 3 at 36% above the exemption.

Holding-company infrastructureNetherlands

The Netherlands has deep treaty and holding-company infrastructure, subject to anti-abuse and substance rules.

The verdict

Germany normally wins for portfolio investors because it uses a 25% withholding-based securities regime instead of the Netherlands' deemed-return Box 3 system.

The Netherlands is often the more flexible international business platform, with a 19% corporate band and established holding-company infrastructure.

Choose Germany for straightforward investment taxation; choose the Netherlands for a genuine international operating or holding structure with substance.

How to read this comparison

Germany and the Netherlands have similar European-market access but very different treatment of private investment wealth.

Frequently asked questions

Is Germany or the Netherlands better for a holding company?

The Netherlands is frequently used for genuine international holding structures, but the result depends on treaty eligibility, substance, shareholder residence and anti-abuse rules.