Life in the Netherlands is getting…cheaper! JUST KIDDING. Cruel joke, we know.
From health insurance to public transport, some big changes are coming to the Netherlands in 2024.
Whether you’re fresh off the plane or a bona fide Dutchie, here are the biggest changes likely to hit your wallet next year, according to RTL Nieuws.
🩻 Health insurance premiums increase
We can be sure of a few things in life: death, taxes, and health insurance premium increases.
Yet, while last year’s increase only averaged around €8, it’s shooting up to €12 this year. How exactly your health insurance providers pass that increase on is up to them.
Annoying right? Meanwhile…
👩⚕️ Healthcare allowance decreases
What is this madness? First, they’re making health insurance more expensive. Now, they’re also reducing zorgtoeslag, the healthcare allowance for people on lower incomes.
While the maximum healthcare allowance in 2023 was €154, this will decrease to €127 in 2024.
🚌 Public transport becomes more expensive
You know how some countries are making public transport cheaper to save a little place called Earth? Well, the Dutch say, “Nah, pay more.”
Regional transport prices are expected to rise by up to 11%. Meanwhile, the cost of those trains you use to explore your adopted home will increase by 3.5%.
💸 You’ll probably pay more tax too
Yeah, why not take another whipping to the wallet while we’re here? Here’s the crux of the tax changes:
- For high-income earners, you’ll need to pay a 49.5% income tax rate for any money earned over €76,000. If that had been correctly adjusted for inflation, the number would be €80,000 — but, helaas.
- For middle-income earners, you’ll now pay 36.97% tax on any amount over €38,468. Again, if properly adjusted, that number would have been €40,826.
- For freelancers and small business owners, the portion of profits where you don’t have to pay tax is reduced from 14% to 12.7%.
- For those who have savings in the bank, the tax rate will increase from 32% to 34%. The point where you start paying tax remains at €57,000 — a number that would have normally increased relative to inflation.
- For drinkers and smokers, yep, there’s more tax on that, too. The excise duty (what a sexy term) will be increased, bringing in approximately €100 million for the government.
🚗 Fuel will also become more expensive
Okay, technically, there was a nice reduction in fuel costs in 2023 because of the high energy prices. Good things never last, so the reduction will finish on January 1.
The result? Gasoline is expected to become a whopping €0.21 more expensive, and diesel €0.135 cents — despite fuel prices already being at record highs.
🏡 Housing and child allowances increase
What? More money IN your pocket? Yes, apparently, that is possible — but only for some.
The housing allowance (huurtoeslag) will increase by €416 per year, dependent on individual circumstances.
For those with offspring, the child allowance (kindgebonden) will also increase. The first child will equate to €750 per year, with a maximum of €883 per year for two or more children. This number is also dependent on your circumstances, income, and relationship.
Have you been affected by the cost of living increases? Tell us your story in the comments below!