Life, taxes and laws in the Netherlands for 2019: What’s changed?

Changes to Dutch law in 2019

Many new laws took affect on January 1st and you may have noticed that a few things have gone up in price since (yes, that includes those train tickets).

Here’s a quick lowdown on what’s changed:

• CONSUMER GOODS: VAT has risen from 6% to 9%, affecting train tickets, events/ ticket prices and groceries.

  Yes, the Netherlands is getting more expensive.

• HOUSING: Social housing rental prices are now capped at 720 euros per month. Other rent will rise up to 5.6% in the middle of the year. Mortgage interest falls to 49% and the mortgage borrowing amount is now now more than 100% of the property value. Gas is set to get more expensive.
• WORK: The minimum wage will rise, along with benefits. New law that 30% ruling is now capped at 5 years (from 2021). The income tax rate (second tax band) will drop from 40.85% to 38.1%.
• PENSIONS: The state pension is set to increase along with higher tax credits. The pension age has also increased to 66 years and 4 months.
• HEALTHCARE: Buying prescription drugs using your own funds has been capped at 250 euros. Health insurance has increased, but the deductibles have not.
• BUSINESS: Income tax will be reduced for small business, with a plan to rule this out over every business. Writing off losses has been reduced to a 6 year period. Electric cars for companies will have to pay 4% of the value of the car (up to 50,000 euros) and 22% if it’s used privately over 500 km p/y.
• FAMILY: Fathers (and other partners) get 5 paid days of paternity leave. Increase in the budget for day and after-school care. Childcare workers now have to employ more works, increasing the price of childcare.
• CRIME: There are now more rights to seize homes that are involved in the illegal drugs trade. Family members who have had someone killed or seriously hurt in a criminal act  will have the ability to receive compensation. Traffic fines have also risen.

According to the government, the changes will mean that overall we will still have money to spend overall – so we will try not to be too freaked out by all the changes. Let’s see though. 😉

Any thoughts? Let us know in the comments!