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Continued scrutiny of real estate financing

Following the Spring Memorandum 2026, the Dutch government has further analysed how current earnings stripping rules apply to real estate financing structures. The analysis confirms that the existing framework does not always prevent excessive interest deductions, particularly where:

• intra‑group loans are used to finance real estate;
• equity is converted into debt; and
• investments are spread across multiple entities to maximise the EUR 1 million earnings stripping threshold.

Although existing earnings stripping rules and anti‑abuse provisions can limit interest deductibility, the government concludes that they do not fully address these structures in all situations. As a result, real estate financing remains a key area of policy attention.

Policy options considered

The report discusses three potential measures aimed at limiting interest deductions in real estate structures:

• Group‑level threshold
  Applying the EUR 1 million threshold at group level rather than per entity, preventing higher deductions through fragmentation.
• Lower threshold for group‑financed entities
  Reducing the threshold for real estate entities that heavily rely on intra‑group debt to € 200k.
• Expansion of existing anti‑abuse rules
  Making interest on intra‑group loans used for real estate financing non‑deductible by default, unless the taxpayer can demonstrate genuine business reasons.

The government notes that each option involves trade‑offs in terms of effectiveness, complexity and potential side effects.

EU developments take centre stage

Despite identifying these options, the Dutch government does not plan to take immediate legislative action. Instead, it points to forthcoming EU initiatives, in particular to a proposed “Omnibus proposal” revising ATAD1.

Based on media reports on a leaked draft, the proposal could significantly reshape the earnings stripping framework, especially for countries like the Netherlands that currently apply stricter rules. Reported elements include:

• a mandatory interest limitation of 30% EBITDA;
• an increase of the fixed threshold to EUR 5 million; and
• the exclusion of third‑party debt from the restriction.

Against this background, the government considers it premature to introduce stand‑alone Dutch measures that may soon conflict with EU law.

What this means in practice

For real estate companies, leveraged businesses and finance teams, the message is clear: do not expect immediate Dutch changes, but be prepared for potentially significant EU‑driven reform.  More details are expected on 24 June 1016.

Takeaway

Interest deductibility in real estate is firmly on the policy agenda, but the decisive developments will come from Brussels rather than The Hague. Businesses should closely monitor the proposed ATAD1 revision and assess how different EU outcomes could affect their financing structures.