Stock options more accessible for startup employees
Internationally, stock options are the most common form of participation in the start-up sector. This was more difficult in the Netherlands.
Published on April 20, 2025
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With a new tax scheme, the government is making it more attractive for employees to share in their company's growth through stock options, in addition to their salary. The tax scheme for employee participation is included in the government's 2025 Spring Memorandum, proposed by Minister Beljaarts of Economic Affairs (EZ) and State Secretary Van Oostenbruggen (Taxation, Tax and Customs Administration).
Dutch startups and scale-ups are often unable to offer internationally competitive employment conditions. This makes it more difficult for them to attract and retain talent. It also hinders further scaling up. Minister Beljaarts: “A tax scheme for employee participation is a long-cherished wish for startups and scale-ups. This will improve the Netherlands' position in the European leading group of countries with the best ecosystems for startups and scale-ups.”
Internationally, stock options are the most common form of participation in the startup sector. Owning shares ensures that employees feel more connected to the company and are less likely to leave. It also strengthens the startup and scale-up ecosystem in the Netherlands, as employees can reinvest the proceeds in the next generation of innovative companies. “This sets a flywheel effect in motion,” says Beljaarts.
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-cherished wish of the sector to attract talent and allow them to share in the growth.
Tax scheme for employee participation
In the proposal for the new tax scheme, the taxation of employees of startups and scale-ups will be changed in two areas: the tax rate for stock options and the moment of taxation. International comparative research has shown that the Netherlands is currently lagging behind in these areas.
Employees of start-ups and scale-ups will pay less tax on their share options. Instead of the high rate of 49.5% in box 1, they will soon pay a maximum of 32.17%. They will also only pay tax when they sell their shares. Currently, this is already the case when the shares become tradable. The proposal for this tax scheme is now being further elaborated in a bill. The intended date of entry into force is January 1, 2027.
Ecosystem for startups and scale-ups in the Netherlands
Successful startups and scale-ups are crucial for a vibrant economy. They contribute to the Netherlands' innovative strength, drive productivity growth, and create jobs. Many startups and scale-ups also contribute to solving societal challenges, for example in healthcare, and are crucial to our economic resilience.
Currently, the percentage of startups that successfully grow into scale-ups is 19%, which is 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 to encourage employee participation addresses this obstacle and enhances access to talent for startups and scale-ups.