If you are planning to invest in new assets exceeding an amount of 2,800 euro (2025), it is worth to prioritise assets that are environmentally friendly and/or investments that promote energy efficiency and sustainability. By deciding upon sustainable investing, you are not just staying one step ahead in business – you are also unlocking considerable tax benefits through a range of Dutch schemes available for companies that invest in such qualifying assets.
The most recurring investment schemes are the Environmental investment allowance (MIA), Random depreciation of environmental investments (VAMIL), Energy investment allowance (EIA).
Tax facilities
Environmental investment facilities
The Environment Investment Allowance (MIA) and the Random depreciation of environmental investments scheme (VAMIL) are two impactful investment facilities to support your green initiatives. Moreover, the facilities can be applied simultaneously to many qualifying investments.
Environmental investment allowance (MIA)
The MIA offers the opportunity to deduct up to a maximum of 45 percent of the investment from the taxable result. The percentage depends on the environmental effects and the prevalence of the asset. In the most favourable scenario, the financial benefit can amount to 14 percent of the initial investment.
Random depreciation of environmental investments scheme (VAMIL)
The VAMIL is a depreciation facility, applicable to environmentally friendly investments. The facility provides the opportunity to depreciate 75 percent of the investment at any time. This brings an additional advantage of being able to apply the depreciation strategically in (profitable) years of choice. As such, using the facility to the full extent may result in cash flow advantages.
Energy investment allowance (EIA)
Based on Dutch tax legislation, businesses investing in energy-saving or sustainable energy assets can benefit from a tax deduction (EIA) amounting to 40 percent of the investment costs. This deduction is an additional deduction to the standard depreciation scheme applicable in the Netherlands. As a result, the energy costs will be reduced and an average benefit of 10% could be claimed.
Standard investment facilities
Small-scale investment allowance (KIA)
This incentive is designed to support entrepreneurs making smaller investments in business assets accessible to all. If your total investment in a fiscal year falls between 2,800 euro and 392,231 euro (2025), you can deduct a percentage of the investment amount from your taxable result. The exact deduction depends on the total amount invested within the tax year, with the highest benefits applying to investments within a certain range.
Temporary accelerated depreciation (2023)
The temporary accelerated depreciation scheme for 2023 allowed entrepreneurs to write off certain new business assets at an accelerated rate. Under this scheme, up to 50% of the investment can be written off immediately, significantly reducing your taxable result in the year of purchase. This offers immediate tax savings and can improve the company’s cash flow in line with our previous remarks under the VAMIL.
Confluence with other facilities
Besides the sustainable investment schemes, there is also a ‘standard’ small investment allowance available in the Netherlands. A company can opt for this allowance in case they invest in assets for a maximum of 392,231 euro (2025).
Based on Dutch tax legislation, the taxpayer can make use of both the EIA and the small investment allowance or the MIA/VAMIL and the small investment allowance. The MIA/VAMIL can only be combined if the investment falls under certain categories of the “Milieulijst”.
However, it is not permitted to both apply for MIA/VAMIL and EIA for the same asset. It is important to assess what investment scheme is most beneficial in the given circumstances.
The Accelerated Depreciation 2023 scheme creates further tax-saving possibilities. It can be combined with other facilities such as KIA, EIA, and, under certain conditions, the MIA. This combination presents a unique opportunity for entrepreneurs to maximize their tax benefits while contributing to sustainable business practices.
In some cases, strategic use of combinations such as EIA with accelerated depreciation can deliver remarkable financial benefits, especially where certain MIA or VAMIL limitations apply (e.g., for investments in categories C/D/E/G of the Milieulijst).By any means, please note that combining these options requires careful tax coordination, as some schemes may affect one another. By strategically leveraging the rules, you can make the most of your investments.
Timing of reporting investments
It is crucial to bear in mind that the investment must be reported at the competent authority within three months after the investment, in order to be eligible for the MIA or EIA. Missing this deadline results in losing out on significant tax advantages.
Unlock your benefits
Sustainable investments don’t just benefit the community as a whole — they also improve your company’s bottom line value. But deciding upon the right options and optimizing your approach requires expert knowledge and experience.
Our team at Grant Thornton Netherlands specializes in tax-efficient strategies tailored to your needs. Contact us today to ensure you’re taking full advantage of available opportunities and creating a more sustainable future for your business.
If you are interested in these schemes, contact your tax adviser at Grant Thornton in the Netherlands.
Contact us
