Updates From Prinsjesdag 2024
Tuesday, the 17th of September was Prinsjesdag. This is when the King opens parliament and delivers the Speech from the Throne, outlining the government's most important financial plans for the coming year. These plans first need to be approved by the Dutch parliament, so they are subject to change. It can be quite difficult to understand these changes if you don’t speak Dutch, so we have covered the most important points for you.
Income, Taxes and Purchasing Power
- Purchasing power for households in the Netherlands will increase by an average of 0,7 percent.
- Changes to 30 percent tax ruling - Instead of phasing out the 30 percent ruling for highly skilled migrant workers, the tax break will be lowered to 27 percent from 2027 onwards.
- Lower incomes pay less tax - People with incomes of up to €38,000 will pay less tax (less than 37 percent rate of income tax). Those earning minimum wage will be getting the maximum amount of tax credit.
- The Higher Value-Added Tax (VAT) will increase from 9% to 21%. This means you will pay more tax on hotels, books, concerts, museums, sporting events and other recreational activities in the Netherlands.
Want to know more about tax changes in 2025? Read the article by TaxSavers
Housing and Infrastructure
- To combat the current housing crisis, the government is planning to build 100.000 new homes every year until 2029.
- A sum of €500 million will be directed towards increasing the rental allowance (huurtoeslag). The government also hopes to increase individual allowances by €11,50 per month from 2026.
- The Dutch government will have a budget cut of 110 million euros for public transport in Amsterdam, Rotterdam and The Hague from 2026.
Healthcare
In an effort to halt the rising healthcare costs, the Dutch government will be lowering healthcare deductibles (Eigen Risico) to €165 from 2027 onwards. The ‘Eigen Risico’ is set to remain at €385 throughout 2025 and 2026. People with a lower income will also benefit from a higher healthcare allowance, increasing by €6,50 per month in 2025.
Childcare
- With an increase in the child budget scheduled for 2025, child allowances are set to increase by a maximum of €75 per month. This change is a part of the government's plan to significantly lower the cost of childcare by providing an additional €425 million to the childcare allowance program.
- A budget of €135 million has been set aside for free school meals for low-income families.
It’s worth noting that none of these changes are for sure going to happen and still have to be officially approved by the Tweede Kamer (Dutch lower house of parliament) this autumn.