Rank #19 · Europe
The Netherlands spent $28.9B on defence in 2025 (2.2% of GDP), the second consecutive year above the NATO 2% target. Spending grew 14% in real terms, driven by F-35 fleet expansion, the multi-year frigate replacement programmes, deep ammunition restocking, and CAOC Uedem-aligned air-defence investments.
Dutch defence spending is governed by the multi-year Defensienota planning cycle, with the most recent update (Defensienota 2024) committing the Netherlands structurally above the NATO 2% target. The 2025 budget grew sharply on procurement: F-35A airframe expansion (52 aircraft committed) plus the cut-in of European Sky Shield commitments (additional Patriot fire units, IRIS-T SLM acquisition), ASW frigate replacement (Anti-Submarine Warfare Frigate, joint with Belgium, four ships), and a Lockheed Martin/Damen-led Air Defence and Command Frigate (ADCF) replacement. The 2024-2025 Munitions Replenishment Plan accelerated buys of PAC-3, AIM-120, JASSM, NSM, and 155mm. Personnel costs grow modestly as the Royal Netherlands Armed Forces work to address chronic recruiting shortfalls.
The Royal Netherlands Armed Forces field about 41,900 active personnel across the Royal Netherlands Army, Royal Netherlands Navy (including the Korps Mariniers), Royal Netherlands Air Force, and Royal Marechaussee. The Army integrates closely with German command structures — the 43rd Mechanised Brigade is subordinated to the German 1st Panzer Division, and the 13th Light Brigade is subordinated to the DSO. The Navy operates LCF De Zeven Provinciën-class air-defence frigates, M-frigates (life-extended pending ASWF replacement), Walrus-class submarines (Orka replacement programme selected the French Naval Group Barracuda variant in 2024), Holland-class OPVs, and Karel Doorman JSS. The Air Force has retired the F-16 fleet and operates F-35A only as the fast-jet platform, alongside Apache AH-64E, NH90, and CH-47F.
The Dutch defence industrial base is mid-sized but technologically sophisticated. Damen Naval (Vlissingen) is the principal warship builder, leading the four-ship ASWF programme jointly for Belgium and the Netherlands and bidding extensively in international markets. Thales Nederland (Hengelo) is a global leader in naval radar (SMART-L MM and APAR Block 2 used on Dutch and allied Aegis-equivalent ships) and naval combat systems. Airbus Netherlands and Fokker (GKN Aerospace) handle aerostructures and MRO including F-35 component manufacture. The Netherlands is a Tier-2 F-35 industrial partner. Dutch industry is deeply integrated with German (joint Army), Belgian (joint Navy), and pan-EU programs (PESCO, EDF).
The Netherlands has no active combat operations but maintains a forward NATO posture. Dutch contributions include the eFP Lithuania battlegroup (German-led), the rotational Quick Reaction Force commitments to NATO's eastern flank, an air-policing presence in Romania, and frigate participation in NATO Standing Maritime Groups. The Royal Netherlands Air Force operates the NATO Combined Air Operations Centre Uedem joint with Germany — the centerpiece for Allied air policing across northern Europe. Dutch frigates participate in Operation Aspides in the Red Sea against Houthi anti-shipping attacks. The Royal Marechaussee plays a major role in border security and the protection of the International Criminal Court at The Hague.
On 27 April 2026, SIPRI confirmed Dutch 2025 spend at $28.9B (2.2% GDP), up 14% in real terms. The first ASWF (Anti-Submarine Warfare Frigate) steel-cut took place at Damen Vlissingen in mid-2025, with Belgian and Dutch hulls running on parallel build lines. The Walrus-class submarine replacement contract with Naval Group France (Barracuda variant) progressed through detailed design in 2025. Additional F-35A acquisitions to bring the total fleet to 52 aircraft were authorised. In June 2025 the Netherlands endorsed the new NATO 5%-by-2035 spending pledge. Dutch Patriot batteries continued to be deployed in eastern NATO under air-defence rotations.
Yes — the Netherlands first met 2% of GDP in 2024 and is at 2.2% on SIPRI methodology in 2025. The Dutch government endorsed the new NATO 5%-by-2035 target in June 2025 and intends to grow defence spending further across the decade.
Four Walrus-class diesel-electric submarines, scheduled for replacement under the Orka programme. In 2024 Naval Group France was selected with a Barracuda-derivative design (Blacksword Barracuda). Detailed design and long-lead procurement progressed through 2025.
Damen Naval (warships), Thales Nederland (naval radar including SMART-L MM and APAR), Airbus Netherlands and Fokker/GKN Aerospace (aerostructures and F-35 component manufacture), and VDL Defense Tech. The Netherlands is a Tier-2 industrial partner in the F-35 program.
NATO Combined Air Operations Centre Uedem is one of two Allied Command Operations CAOCs, jointly operated by the Netherlands and Germany. It commands NATO air policing and quick-reaction alert across northern Europe (north of the Alps).