What are the main sources of revenue for the Netherlands' government

Introduction

The main sources of revenue for the Netherlands’ government are:

Taxes

Taxes are the primary source of revenue for the Dutch government. This includes:

Personal income tax

Corporate income tax

Value-added tax (VAT)

Excise taxes on certain products

Property tax

Motor vehicle tax

The Netherlands has a graduated personal income tax system and levies a value-added tax (VAT) since 1969.

Social Security Contributions

Social security contributions form a significant portion of government revenue. In 2022, the tax-to-GDP ratio in the Netherlands was 38.0%, with social security contributions accounting for a higher proportion of revenue compared to the OECD average.

Natural Gas Revenue

Although declining in recent years, revenue from natural gas exploration, extraction, and sale still contributes to government income. This includes:

Concession rights for gas and oil field exploitation

Income from the Meeropbrengst Regeling Groningen (MOR)

Distributed income from Energie Beheer Nederland (EBN) and GasTerra

Corporate income tax from companies exploiting gas and oil fields

Other Sources

Income and profits from state holdings in private enterprises

Fines

Sales of goods and services by government entities

Conclusion

In the first half of 2024, the Dutch government’s total revenue was 245.4 billion euros, with taxes and national insurance contributions accounting for a significant portion of this amount.