As every year, a whole raft of new rules, regulations, tax updates and other changes come into force at the start of the New Year. Here’s what you need to know.
Work and income tax
The basic income tax rate will go down on salaries up to €68,507 from 37.35% to 37.1%. Between 2022 and 2024 the basic tax rate will go down further, to 37.03%. Other tax allowances are also changing which should boost the disposable income of people in work.
The tax deduction for the self-employed is going down by €360 to €6,670.
The tax free allowance on assets goes up from €30,846 to €50,000. People with between €50,000 and €100,000 in savings and shares will pay asset tax of almost 0.6%, but to €1m, 1.4% and over €1m 1.8%.
New rules are being brought in to make it easier for start-ups to bring in staff from abroad by reducing the pay requirement. New firms can offer employees shares instead. This measure is expected to be introduced from March.
The minimum wage is going up for people aged 21 and over to €1,684.80 per month or €77.76 a day.
Overdrachtsbelasting: First-time buyers under the age of 35 will not have to pay property transfer tax, although the details have yet to be finalised.
The tax will remain 2% for everyone else if they intend to live in the property but if you plan to rent it out, or are a commercial investor, the tax shoots up to 8%.
Home owners will have to have an energy label if they want to sell their property.
Dual income households will be able to borrow more. Banks will now taken 80% of the second salary into account when calculating maximum mortgages.
The government is cutting the maximum deduction for mortgage interest from 46% to 43%. In affect this will only hit people in the highest tax bracket.
The national mortgage guarantee scheme will now be applied to properties costing up to €325,000.
Tenants in expensive social housing will be able to ask for a one-off rent cut, if their income drops.
The government is also planning to put a ceiling on rent rises in the non-rent controlled sector of 2.4% from July, but that plan has not yet been approved by parliament.
The motor vehicle tax (motorrijtuigenbelasting, mrb) exemption for electric delivery vehicles and hybrid plug-ins will remain in place until 2025. Vehicle tax for diesel and petrol vehicles will go up by an average of €24 per year, depending on the weight.
People with an electric or hybrid company car will pay 8% tax on the first €45,000 of the catalogue price and 22% over the rest. Petrol powered company car owners will pay 22%.
Cars older than 50 years will no longer have to have an annual APK test.
Tractors will have to be registered with the vehicle registration authority RDW and have a number plate.
The lower level of corporation tax will be reduced from 16.5% to 15% in 2021 and the threshold for the lower rate will go up from €200,000 to €245,000. It will increase again to €395,000 in 2022.
The government also plans to introduce a tax on carbon-dioxide emissions, but this has not yet been worked out in detail.
Dutch companies will also have to start paying tax on royalties but again, details have not yet been finalised.
For a full round-up, go to the government website.
Airports will bring in an airline charge of €7.85 per person flying from a Dutch airport, but the charge will not be applied to transfer passengers and children under the age of two.
All ordinary shops must keep tobacco products hidden and specialist tobacco shops can no longer advertise their wares inside or outside the store or on their websites.
Taxes on a packet of cigarettes will go up by some 12 cents, while a packet of rolling tobacco will cost some 30 cents more. New regulations come in to ensure all new buildings meet the so-called Beng standard, or are virtually energy neutral.
Drone users with a drone weighting more than 25 kilos will have to register with the driving licence authority RDW and include the registration number on the drone.
Britain’s full departure from the EU on January will also bring major changes with it, particularly for companies doing business with the UK.
It is not yet completely clear what the impact of Brexit will be on bringing food and other items from the UK to the Netherlands but fresh food such as cheese and bacon are likely to be on the banned list