Loan
Updated: 09.01.2019
Author: Stijn Anciaux
The Dutch government gives a tax benefit to consumers who invest or put their savings in a green fund. This enables the banks to offer loans at lower interest rates to ‘green’ projects. For a project to qualify for such a loan it should apply for a declaration on the basis of the Regulation Green Projects 2016. In general projects, which positively affect the environment can apply for a declaration. The declaration is valid for 10 or 15 years depending on the application (art 16. 1. (a) & (d) RGP 2016).
Eligible technologies
Geothermal, biogas and solar thermal are eligible.
| Biogas | Not eligible (Only the investments for gas purification to enable feed-in the gas grid are eligible (art. 7.a. RGP 2016) |
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| Geothermal energy | Eligible (art.7.f. RGP 2016) |
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| Solar thermal energy | Eligible (art.7.e. RGP 2016) |
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Amount
In practice the declaration on the basis of RGP 2016 will result in a reduction of the interest rate on the order of 1%. Minimum project costs are € 25,000 (ar.15. 1 (e), RGP 2016) unless the project is related to art. 7.d. & e. or art.8.a.RGP 2016.
Addressees
Entitled party: Any investor in ‘green’ projects is entitled to the tax benefit on the basis of RGP 2016, provided it has a declaration stating that the project qualifies for the label green project.
Procedure
Process flow | - The investor applies for a loan on the basis of RGP 2016 at a bank which manages a green fund
- The bank applies for a green project declaration at the Netherlands Enterprise Agency
- The Netherlands Enterprise Agency reviews the application on behalf of the Ministry of Infrastructure and Water Management
- The declaration will be granted by the reviewing agency to the bank and the investor
- Now, the bank can offer the loan at a reduced interest rate
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Competent authority | Netherlands Enterprise Agency
Ministy of Infrastructure and Water Management |
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Distribution of costs
| State | State receives less income from capital and income tax. |
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Netherlands
