With Prinsjesdag (Budget Day) in the rearview mirror, the Dutch cabinet’s plans for you — and your money! — have finally been unveiled.
In a summary of the Budget Memorandum and tax plan for 2025, the Dutch government has outlined several important changes in taxation, rental allowance, and purchasing power (among others).
If you’re sick of feeling as poor as a church mouse, we’ve got some good news for you: Dutch purchasing power is set to increase in 2025. Here’s how:
Lower incomes pay less tax
With the addition of a new tax bracket, people with incomes of up to €38,000 will pay less tax.
Those earning minimum wage, meanwhile, are to get the maximum amount of tax credit.
Huurtoeslag will increase
In the realm of housing, renters may want to pop a bottle of bubbly as a sum of €500 million will be allocated towards increasing the rental allowance (huurtoeslag).
READ MORE | Huurtoeslag?! All you need to know about Dutch rental allowance in 2024
The government also hopes to increase individual allowances by €11.50 per month from 2026.
More help towards your energy bill
“And what about rising energy costs?” you might ask.
Well, with a budget of €60 million set aside for helping those who cannot pay their skyrocketing energy bills, it looks like many of us will be less afraid of turning on the heating this winter.
Sustainable subsidies
Even better? People who make their homes more sustainable (and thus, less of a drain on the energy grid) will enjoy a share of the €578 million the government has set aside in subsidies.
More affordable healthcare
In a bid to curb fears of rising healthcare costs, the Dutch government will be lowering healthcare deductibles to €165 from 2027 onwards.
(Helaas, that figure is set to remain at €385 through 2025 and 2026.)
READ MORE | All you need to know about going to the hospital in the Netherlands
Lower income individuals will also benefit from a higher healthcare allowance, with the figure increasing by €6.50 per month in 2025.
The Dutch government also intends to shorten the infamously long waiting lists for mental healthcare, with an additional €30 million set aside for this. (They plan to publish an extra agenda for mental healthcare in 2025, so keep your eyes peeled!)
More allowance for parents
With an increase in the child budget scheduled for 2025, child allowances are set to increase by a maximum of €75 per month.
Childcare is also likely to get cheaper
This change is part of the government’s plan to allocate an additional €425 million on childcare allowance in the hopes of establishing a system that drastically reduces the cost of childcare.
Also on the cards is a €135 million budget for free school meals. Lekker!
It’s worth noting that none of these changes are cast in stone and still have to be officially approved by the Tweede Kamer (Dutch lower house of parliament) this autumn.
All in all, this plan is intended to increase the purchasing power of the average household by 0.7% — and by 1% for those already living on benefits.
Is this less than we expected? Yes. Will we take it? Yes.
What do you think of the proposed changes? Tell us your thoughts in the comments below!
