Prinsjesdag 2024: How the Netherlands' 2025 Budget Will Affect Your Daily Life and Finances?

Taxes, %30 Rulling, Asylum Policy and Political Tensions and more

On September 17, 2024, Prinsjesdag, an important day in Dutch politics, took place. Prinsjesdag is when the Dutch belastingplan (tax plan) is announced each year on the third Tuesday in September. This year is special because the 2025 budget was presented under the leadership of the new Prime Minister (Minister-president) Dick Schoof. The plans are then discussed by the Tweede Kamer (House of Representatives) and the Eerste Kamer (Senate). Once approved, they typically take effect from January 1 of the following year.

For a short important list of the changes, you can also read this article:https://www.kolaygelsinblog.nl/posts/prinsjesdag-2024-how-will-impact-your-wallet

Feel free to watch our video on YouTube and leave a comment.

Ceremony and Tradition (Ceremonie en traditie) : As usual, Prinsjesdag began with the ceremonial procession of King Willem-Alexander and Queen Máxima in The Hague. Thousands of spectators gathered on the streets to see the royal family, marking the start of the parliamentary (parlement) year in the Netherlands.

Key Points of the Budget (Hoofdpunten van de begroting): The Dutch government (Nederlandse regering) has announced several important measures in the 2025 budget, with a total expenditure of 457 billion euros. Here are the main changes:

📌Income and Taxes (Inkomen en belastingen)

Purchasing Power (Koopkracht): Purchasing power is expected to increase by 0.7% in 2025, down from the previously projected 1.1%.
30% Ruling (30%-regeling) for Expats: The tax advantage for highly skilled foreign employees will be reduced from 30% to 27%. Details below under the 30% Ruling heading.
New Tax Rates (Nieuwe belastingtarieven): Tax rates for lower incomes will be reduced.
Wealth Tax (Vermogensrendementsheffing): The rate for investors and small landlords will decrease from 10.4% to 8%.
VAT Increase (BTW-verhoging): VAT for cultural and entertainment activities, books, concerts, and museums will rise from 9% to 21%.
Corporate Tax Reduction (Vennootschapsbelasting): Companies will benefit from a 1.5 billion euro tax cut.

📌30% Ruling (30%-regeling) for Expats

During Prinsjesdag 2024, the newly formed Dutch government proposed changes to the 30% tax benefit for highly skilled foreign workers. Under this new regulation, the tax advantage will be reduced from 30% to a fixed 27% for a period of five years for highly skilled migrants coming to the Netherlands. If approved, this change will come into effect on January 1, 2027.

What Will Change for Current Employees?

The 30% tax benefit will be applied differently depending on when employees started their jobs:

For Those Who Start Working After January 1, 2024: These employees will continue to enjoy the 30% tax advantage until the new regulation comes into effect in 2027. After that, the tax benefit will be reduced to 27%.

For Those Who Started Before January 1, 2024: These employees will keep their 30% tax benefit for the full five years, with no changes during this period.

📌Healthcare (Gezondheidszorg)

Healthcare Allowance (Zorgtoeslag): A slight increase to offset rising health premiums.
Own Risk (Eigen risico): The own risk amount will decrease from 385 euros to 165 euros by 2027.

📌Housing and Infrastructure (Wonen en infrastructuur)

Housing Construction (Woningbouw): 5 billion euros allocated for building 100,000 new homes annually. An additional 2.5 billion euros will be set aside for new housing development.
Public Transport (Openbaar vervoer): A 110 million euro reduction in public transport budgets in major cities starting from 2026.

📌Education (Onderwijs)

Free School Meals (Gratis schoolmaaltijden): Continued subsidies for children from low-income families.
Compensation for Textbooks (Compensatie voor schoolboeken): New compensation measures due to VAT increases on textbooks.
International Students Limitation (Beperking internationale studenten): Measures to save 293 million euros by reducing the number of international students and promoting Dutch language use.

📌Security (Veiligheid)

Defense Spending (Defensie-uitgaven): 2% of GDP(Gross Domestic Product) allocated to defense in line with NATO requirements.
Police Funding Increase (Verhoging politiefinanciering): Starting with 50 million euros in 2025, with annual increases.

📌Asylum Policy and Political Tensions (Asielbeleid en politieke spanningen)

One of the most controversial aspects of the 2025 budget is the asylum policy in the Netherlands. The government plans to implement stricter measures to reduce the number of asylum seekers. These policies aim to make it more difficult for refugees to come to the Netherlands through family reunification.

Family Reunification (Gezinshereniging): The right for refugees to bring their spouses and children to the Netherlands will be limited with stricter criteria. New measures include:
More comprehensive reviews of family reunification applications.
More stringent application requirements, such as longer waiting periods or higher financial requirements.

These measures aim to control the refugee population in the Netherlands and facilitate social integration. The new policies are strongly supported by the center-right party NSC (NSC), which has threatened to withdraw support from the coalition government (coalitiepartij) if these policies are not implemented. This has caused political tensions within the government. The government also plans to discuss these changes within the framework of European Union (Europese Unie) migration policies, aiming to make the asylum system in the Netherlands more sustainable.

Sources :

https://www.dutchnews.nl/2024/09/pomp-and-ceremony-as-the-dutch-government-presents-its-budget/?utm_source=www_dutchnews_nl&utm_medium=msrc&utm_campaign=c005e22d296c38a12039004e9d4d8a6f92bc9284b337ead730bdb0dec4f3f050

https://www.iamexpat.nl/expat-info/dutch-expat-news/prinsjesdag-2024-what-dutch-governments-budget-means-you

https://www.taxlive.nl/nl/documenten/nieuws/prinsjesdag-2024-wijzigingen-in-de-loonbelasting/

https://www.kvk.nl/wetten-en-regels/je-bv-en-prinsjesdag-dit-zijn-de-belastingplannen/

https://www.kvk.nl/wetten-en-regels/btw-bpm-en-meer-plannen-prinsjesdag-2024/

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