Netherlands Agriculture and Farming Tax Guide

Landbouwvrijstelling (Agricultural Exemption)

• Exemption for land value gains: The landbouwvrijstelling (art. 8 Wet Vpb 1969) exempts from corporate tax the gain on the sale of agricultural land (landbouwgrond) and nature reserves (natuurterreinen), provided the land is used for agricultural purposes by a qualifying agricultural enterprise. The exemption applies to the difference between the sale price and the original acquisition cost (the bodemwaarde — soil value). The exemption covers gains from: (a) sale of agricultural land to a third party, (b) compulsory purchase (onteigening — eminent domain) by the government, and (c) transfer of land as a contribution in kind to a joint venture or agricultural cooperative.
• Conditions: The exemption applies only if: (a) the land is used for agricultural or nature conservation purposes at the time of sale, (b) the seller is a qualifying agricultural enterprise (landbouwbedrijf — including greenhouse horticulture, fruit growing, livestock, arable farming), and (c) the gain is attributable to an increase in the value of the land (not buildings, improvements, or drainage — these are depreciable assets, subject to corporate tax). The exemption does not apply to land held as a pure investment (speculatieve grondhandel — speculative land trading).
• Interaction with the overdrachtsbelasting exemption: The buyer of agricultural land may qualify for an exemption from 10.4% overdrachtsbelasting (transfer tax) if the buyer is a qualifying farmer (landbouwer) and the land will continue to be used for agriculture. The exemption (art. 15(1)(q) Wet WBR) requires the buyer to be a natural person or a qualifying agricultural BV/cooperative. The exemption is not automatic — the buyer must apply to the Belastingdienst within 4 weeks of the acquisition.

GLB — EU Common Agricultural Policy Subsidies

• Tax treatment of GLB subsidies: EU agricultural subsidies (GLB-premies — direct payments to farmers under the EU's Common Agricultural Policy) are taxable as business income (box 1 winst uit onderneming). The subsidies include: (a) the basisinkomenssteun (basic income support — per-hectare payment of approximately €200–400 per hectare), (b) the vergroeningspremie (greening premium — eco-schemes for biodiversity, crop rotation, and permanent grassland), (c) the jonge landbouwerspremie (young farmer top-up — an additional 25% for farmers under 40 in their first 5 years), and (d) the ANLb (Agrarisch Natuur- en Landschapsbeheer — agri-environment-climate payments for landscape and biodiversity management).
• GLB — national implementation: The Netherlands implements the GLB through the Rijksdienst voor Ondernemend Nederland (RVO). Farmers must apply for GLB subsidies annually (the Gecombineerde opgave — combined application, also used for Meststoffenwet — manure legislation and Landelijke registratie percelen — land parcel registration). The application deadline is typically 15 May. The RVO also administers the conditionaliteit (cross-compliance) requirements — farmers must comply with environmental, animal welfare, and food safety rules to receive the full subsidy.

Greenhouse Horticulture (Glastuinbouw) — VAT and Energy

• 0% VAT on natural gas for greenhouse heating (to 2030): Natural gas used for greenhouse heating in the glastuinbouw sector is subject to 0% VAT (instead of 21%). The reduced rate was introduced to support the competitiveness of Dutch greenhouse horticulture and is approved by the European Commission until 31 December 2030. The 0% VAT applies to natural gas delivered to greenhouses with a horticulture registration (glastuinbouwregistratie). The greenhouse operator must hold a valid LKV (Landelijk Kwaliteitsnet Verwarming) certificate.
• Reduced energy tax (energiebelasting): Greenhouses benefit from a reduced energy tax rate (verlaagd tarief energiebelasting) on natural gas. The reduced rate is approximately 50% lower than the standard industry rate (€0.05–0.10 per m³ vs €0.25–0.40 for standard industry). The reduced rate is available to greenhouses with a WKK (warmtekrachtkoppeling — combined heat and power) installation or a qualifying greenhouse licence (glastuinbouwvergunning). The reduced rate is being phased down as part of the energy transition (klimaatakkoord — climate agreement target: CO₂-neutral greenhouse by 2040).
• SDE++ for greenhouse renewable energy: Greenhouses investing in renewable energy (geothermal heat — aardwarmte, solar panels on greenhouse roofs, biomass CHP, heat pumps, heat storage — warmteopslag in aquifers) can apply for the SDE++ (Subsidieregeling Duurzame Energietransitie) — a feed-in premium covering the unprofitable component of the investment. The SDE++ premium is taxable as business income. The RVO handles SDE++ applications in autumn rounds.

Circular Agriculture (Kringlooplandbouw) Incentives

• EIA for circular agriculture: Investments in circular agriculture technologies (precision manure application — precisiebemesting, anaerobic digestion — vergisting for biogas, robotic weed control — robot-onkruidbestrijding, and vertical farming systems — verticale landbouw) qualify for the EIA (Energie-investeringsaftrek — 45.5% additional deduction). The investment must be on the RVO's EIA-lijst (energy list). The EIA reduces the taxable profit by 45.5% of the investment — a net tax saving of ~11.7% at 25.8% corporate tax.
• Vamil for environmental farming equipment: Precision agriculture equipment (GPS-guided tractors, variable-rate fertiliser spreaders, drone-based crop monitoring, robotic weeding machines, and soil sensors) qualifies for Vamil (willekeurige afschrijving — 100% accelerated depreciation). The investment must be on the RVO's Milieu-lijst. For a farming BV paying 25.8% corporate tax, Vamil accelerates the tax deduction from 25–40 years to 1 year — a significant cash-flow benefit.
• MIA en Vamil (already mentioned — the environmental investment combination): The MIA (Milieu-investeringsaftrek) provides an additional deduction of 13.5–36% of the investment (depending on the milieuklasse — environmental class of the asset) on top of normal depreciation. The MIA and Vamil can be combined — many agricultural investments qualify for both. The RVO publishes the Milieu-lijst annually (typically in January). The combined MIA+Vamil benefit for a €100,000 investment can reach €15,000–30,000 in tax savings.

Seasonal Workers in Agriculture

• Seasonal employment: The Dutch agricultural sector relies heavily on seasonal workers (seizoenarbeiders) from Poland, Romania, Bulgaria, and increasingly from non-EU countries (under the oogstvrijstelling — harvest exemption or tewerkstellingsvergunning — TWV). Seasonal workers can work for up to 24 weeks per year without a Dutch residence permit (EU workers) or 18 weeks (non-EU under the provisional harvest exemption). The employer must register with the UWV and comply with the Wet minimumloon en minimumvakantiebijslag (minimum wage and holiday allowance).
• Payroll tax for seasonal workers: Agricultural employers must withhold loonheffingen for seasonal workers. For workers staying in employer-provided accommodation, the inwoning (on-site accommodation) may be a taxable benefit (loon in natura) valued at approximately €2–5 per day. The landbouw-CAO (CAO for the agricultural sector) provides for a minimum of €12–15 per hour (2026) and mandatory contributions to the Agrarische bedrijfstakpensioenfonds (Agro-pensioen — industry pension fund).

AgriTech — Agricultural Technology Tax Credits

• WBSO for precision agriculture R&D: Agricultural technology companies developing: (a) precision farming software and algorithms, (b) robotic weeding and harvesting systems, (c) vertical farming automation, (d) drone-based crop monitoring and spraying, (e) greenhouse climate control AI, (f) biobased material production, and (g) cultured meat/lab-grown protein technologies qualify for the WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) — a 40–50% discount on R&D wage costs. The WBSO is the primary R&D incentive for the Dutch AgriTech sector, which includes companies like Certhon (greenhouse technology), Priva (climate control), and Connecterra (AI for dairy farming).
• Innovation box for AgriTech IP: Self-developed agricultural technology IP (patents on novel greenhouse systems, dairy sensors, biobased processes) may qualify for the innovation box (9% effective tax rate). The IP must be developed by the Dutch entity (not acquired). The innovation box and WBSO can be combined — reducing the effective tax rate on qualifying IP income to 5–10%.

For corporate tax on agricultural BVs, see our Corporate Tax Guide →. For VAT on agricultural products and services (the landbouwregeling — agricultural flat-rate scheme for small farmers), see our VAT/BTW Guide →. For environmental permits (omgevingsvergunning) and their tax implications for farming operations, see our Property Tax Guide →.