UK vs Netherlands taxes (2026): 30% ruling, Box 3 and National Insurance

United Kingdom vs Netherlands tax rates at a glance

Tax	🇬🇧 United Kingdom	🇳🇱 Netherlands
Income tax	Personal income tax: 20% to 45% Personal allowance: GBP 12,570 Scottish top rate: 48% Employee National Insurance: 8% Employer National Insurance: 15%	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: 25% Small profits rate: 19% Marginal relief band: GBP 50,000 to GBP 250,000 VAT: 20%	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	Annual exempt amount: GBP 3,000 Basic rate CGT: 18% Higher and additional rate CGT: 24% Business Asset Disposal Relief: 18%	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 allowance: GBP 500 Basic rate dividend tax: 10.75% Higher rate dividend tax: 35.75% Additional rate dividend tax: 39.35% Withholding tax on ordinary dividends: 0%	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% Inheritance tax: 40% Capital gains tax: 24% ATED scope: GBP 500,000+	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	Standard inheritance tax: 40% Nil-rate band: GBP 325,000 Residence nil-rate band: GBP 175,000 Lifetime gifts: Potentially 0% to 40%	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: 20%	VAT: 21%
Standard VAT	20%	21%
Employment overlay	National Insurance on employment	30% ruling if eligible; otherwise Box 1 payroll

Who wins on each tax

Personal income taxUnited Kingdom

UK income tax tops at 45% (48% in Scotland). Dutch Box 1 reaches 49.50%. The 30% ruling can reverse the employment result for a qualifying inbound employee.

Corporate taxUnited Kingdom

UK rates are 19% small profits and 25% main rate. The Netherlands charges 19% on the first EUR 200,000 and 25.8% above.

Capital gains taxUnited Kingdom

UK individuals pay 18% or 24% on actual gains from 6 April 2026. Dutch portfolio investments are often in Box 3's deemed-return system rather than a classic CGT.

VATUnited Kingdom

UK VAT is 20%, below the Dutch 21% standard rate.

Wealth / investment taxUnited Kingdom

The UK has no net wealth tax. Dutch Box 3 taxes a deemed return at 36% above the exemption.

The verdict

On ordinary work income the Netherlands is not lighter. Box 1 reaches 49.50% above EUR 78,426 in 2026, against the UK's 45% additional rate (48% in Scotland). The Dutch 30% ruling can treat part of a qualifying incoming employee's salary as tax-free for a limited period. It is an employment product, not a 0% system.

Investment tax is the larger design split. The UK taxes actual gains at 18% or 24% from 6 April 2026 and dividends at 10.75% / 35.75% / 39.35%. The Netherlands often taxes savings and portfolio wealth in Box 3 at 36% on a deemed return, while a 5% or larger shareholding sits in Box 2 at 24.5% or 31%.

Choose the Netherlands for a genuine EU holding or operating base and, if eligible, the 30% ruling. Choose the UK if employment National Insurance plus a listed CGT rate is easier to live with than Box 3, or if a four-year foreign-income-and-gains claim is available after ten years outside the UK.

How to read this comparison

The United Kingdom and the Netherlands are both high-tax, treaty-rich places to hire and to hold companies. The interesting difference is which extra layer you get on top of a ~25% company rate.

Dutch Box 1 for 2026 is 35.75%, 37.56% and 49.50% on work and primary-home deemed income. The first bracket includes national insurance contributions. The UK additional rate is 45% (48% in Scotland) plus employee and employer National Insurance on employment. For a mobile employee, the Dutch 30% ruling is the actual planning product: a qualifying inbound hire can treat a portion of salary as tax-free for a limited period. Miss the conditions, and the Netherlands is simply the higher headline salary tax.

Investment income is where the systems stop resembling each other. The UK taxes realised gains at 18% or 24% from 6 April 2026 after a GBP 3,000 annual exempt amount, and taxes dividends at 10.75%, 35.75% or 39.35%. The Netherlands often does not wait for a disposal. Box 3 applies 36% to a deemed return on many savings and investments above an exemption, which can hurt in a low-yield year. A 5% or larger shareholding moves into Box 2 at 24.5% or 31%. Inheritance tax exists in both countries: the UK at 40% with a long-term residence worldwide reach; the Netherlands on a 10% to 40% scale with generous partner exemptions.

Company tax is close. The UK is 19% then 25%. The Netherlands is 19% on the first EUR 200,000 then 25.8%, with 15% dividend withholding in many cases. VAT is 20% in the UK and 21% in the Netherlands. A four-year foreign-income-and-gains claim can shelter eligible foreign income for a new UK resident after a decade abroad. That does not copy the 30% ruling, and it does not copy Box 3. Substance, payroll withholding and treaty residence still decide which extra layer you actually pay.

Which one fits you

🇬🇧 Choose United Kingdom if you're a…

Employees who will not get the 30% ruling
Portfolio investors who prefer tax on actual 18%/24% gains to Box 3
Companies comparing 25% UK corporation tax with 25.8% Dutch tax

🇳🇱 Choose Netherlands if you're a…

Qualifying inbound employees who can use the 30% ruling
Groups that need Dutch holding-company and treaty infrastructure
Founders with a real Netherlands operating base

Frequently asked questions

Is the Netherlands lower tax than the UK?

Not on ordinary Box 1 salary. The 30% ruling can make Dutch employment cheaper for a qualifying inbound hire. Box 3 can make Dutch portfolio wealth more expensive than UK CGT on actual gains.

What is the Dutch 30% ruling?

It is a time-limited employment-tax facility for qualifying incoming employees. Part of salary can be treated as tax-free if the conditions are met. It is not a personal 0% regime and it does not rewrite Box 3.

Does the Netherlands have a wealth tax?

Not as a single percentage of net worth. Box 3 taxes a deemed return on many savings and investments at 36% above an exemption, which functions as a wealth-based investment tax.

How does UK FIG compare with the 30% ruling?

FIG can relieve eligible foreign income and gains for a qualifying person in the first four UK tax years after ten consecutive non-UK years. The 30% ruling is an employment-income facility for inbound staff. They solve different problems.

United Kingdom vs Netherlands taxes