How do you maximise your tax benefit from the MIA?
With the MIA, your tax benefit for qualifying investments can amount up to 45% of the investment amount, depending on the type of investment. The MIA reduces the taxable profit and thus the tax burden. Moreover, the payback period of the investment becomes shorter. This provides an incentive for entrepreneurs to invest in environmentally friendly assets and techniques.
When is the MIA applicable for you?
- You are an entrepreneur for income or corporate taks purposes (both self-employed and legal entities such as BVs and NVs).
- A government organisation, foundation or association that pays corporate income tax may also qualify for the MIA.
If you are a private individual you are not eligible for the MIA.
What conditions are required for the MIA?
To be eligible for the MIA, you must meet the following conditions:
- You are subject to personal income tax or corporate income tax in the Netherlands.
- Your investment amounts to at least €2,500.
- The technology or asset is listed on the official Environmental List.
- You have not previously used the asset.
- You have not claimed the Energy Investment Allowance (EIA) for the technology or asset.
Do you want to know if an investment meets the requirements? Take a look at the flowchart in the annex.
Sample calculation
For example, you make an investment of €1,000,000 in environmentally friendly assets and/or techniques and therefore qualify for the MIA. With a deduction rate of 45 percent for 2026, you can deduct an additional €450,000 from your taxable profit. As a result, at a (maximum) corporate tax rate of 25.8 percent, you pay €116,100 less in tax. At the top rate of personal income tax (49.5 percent), the tax saving is even higher at €222,75.
The application and implementation of the MIA
The application process of the MIA can be summarised in five steps:
- Check if your investment is listed on the official Environmental List and meets the requirements outlined therein, as mentioned above.
- Register the investment with the Netherlands Enterprise Agency (RVO).
- The RVO evaluates your application. If additional information is required, you will be notified within ten working days.
- You will receive a decree that can be used for your taks return.
- Declare in your tax return for that year whether you are entitled to the MIA and for what amount.
The application (including necessary data and supporting documents, such as invoices and technical specifications of the investment) must be submitted to the RVO within three months of entering into the investment commitment.
What is the Environmental List?
The Environmental List is continuously updated and contains specific requirements and criteria that must be met. The list distinguishes the following categories of qualifying investments:
- Raw materials and water use Investments in environmentally friendly techniques and techniques related to the use of raw materials and water, such as sustainable production methods and techniques that reduce or recycle the use of raw materials, e.g. waste recycling systems and material reuse.
- Food supply and agricultural production Investments in organic farming methods, such as mechanical pest control equipment for crops in openfield and horticulture, and equipment for protein extraction.
- Mobility For example: investments in electric buses and vans, as well as charging equipment.
- Climate and air For example: investments in equipment for emission reduction of nitrogen, nitrous oxide, and methane.
- Land use For example: investments in facilities to enhance biodiversity.
- Built environment For example: investments in cadmium- and fluorine-free solar panels and circular (business) buildings.
- Production costs Production costs you incur for the asset, must also be reported within three months after the end of each calendar quarter in which you incurred these production costs. If the asset is already in use, you must report the production costs within three months of putting it into use.
Combining MIA with the KIA, VAMIL or EIA?
In some cases, alongside the MIA, you can also utilise other investment facilities. For instance, for investments up to €387,580 (in 2024), you can apply the Small-Scale Investment Allowance (KIA). When combined with the MIA, you may potentially deduct more than 70 percent of your investment amount from your taxable profit.
Additionally, in conjunction with the MIA, you can also apply accelerated depreciation of environmental investments (VAMIL). With VAMIL, you can depreciate 75 per cent of the investment costs at once.
However, combining the MIA with the Energy Investment Allowance (EIA) is not possible. The EIA has its own Energy List, which partially overlaps with the Environmental List of the MIA. The qualifying investments and benefits of the EIA differ from those of the MIA. If your investments qualify for both facilities, you will need to choose which facility to apply. Would you like to learn more about the EIA? Then read our EIA whitepaper.
Do you need advice about your MIA application?
Our specialists are ready to provide you with more information or support you in the potential application of the EIA. Would you like to learn more about how you can benefit from environmentally friendly investments? We would be delighted to explore with you the possibilities of making your business more sustainable in a tax-friendly manner.
The Energy Investment Allowance is an attractive fiscal scheme aimed at promoting sustainable investments. In addition to reducing your energy consumption and emissions, you benefit from tax advantages. The Energy Investment Allowance is available for organisations investing in CO2 reduction, energy-efficient technologies, or sustainable energy.
Annex I - Mia Flowchart
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