Hello Going Expat People,
We haven’t ¨talk¨ for a while but I come back with an article full of info regarding what is expected to happen in the Netherlands during next year from an economic point of view.
In fact, the Prinsjesdag is nothing more than the day when the King sits on the throne and talks in detail about the economic-financial issues for the following year in the country.
It always happens in the middle of September so that all companies, freelancers etc… can be organised in the final 3 months of the current year and be ready for the next one. In this case some changes to the current rules will be implemented later, but have already been proposed.
Why do I say they have been proposed and not agreed? Because, although usually what is announced during Prinsjesdag is then actually carried out, it will first have to pass through the votes of the chambers before it becomes law.
What aspects of the annual budget are important for expats?
Some of the terms discussed during Prinsjedag interest us more than others. For this reason, I will focus on them and mention the others, leaving you, as always, the links to official channels.
At the top of the ranking of the most relevant news for High Skilled Migrants we find the return of the tax ruling as we already knew it before 2024, but with a small change in percentage.
In fact, from 1 January 2024, some changes to the previous 30% tax ruling reduced the benefit percentage considerably, until the benefit disappeared completely.
Let’s take a step back.
The tax ruling is the possibility to receive part of your salary without taxes for a number of years. It has always been about 30% and to be reduced in time was the amount of time in which this occurred. Recently it was a benefit valid for 5 years if the employee and employer met certain criteria, among which being both tax resident in the Netherlands and having a salary above a certain amount. In January, the government announced that it would cut 30% every 20 months and raise the minimum wage to receive the benefit.
The new proposal foresees that from 2027 the tax ruling will be reduced from 30 to 27% and will not undergo any other changes in this sense. The minimum wage to be negotiated to receive the benefit will pass from €46,107 to €50,436 gross per year. For those under 30 with a master’s degree, the annual gross rate will be from €35,048 to €38,388.
Another important and more inclusive step is the simplification to be able to hire people with disabilities. The goal is to have 100,000 more jobs for them by 2026
As often happens everywhere, bad news for the world of culture. In fact the % of VAT will be increased from 9 to 21% starting from 2026 so we hope that they change their mind or that the law is not passed).
This new tax will apply to books, newspapers, magazines, music, sports and all kinds of events, museums and gyms. It will not affect cinemas, amusement parks, zoos, botanical gardens and non-commercial sporting events. Read more here.
The same change in tax rate will be applied to hotels, B&Bs, holiday homes and all types of accommodation where you can sleep, except campsites. The VAT rate will then be reduced from 9% to 21%
Many expatriates have started business activities or work as freelancers.
From 2025 the classification for taxation changes and rises, which means that the higher margin of economic income to which you pay more taxes is extended. This is good news.
What do you think of these proposals?
Will the cost of living become more expensive here in the Netherlands?
Let me know what you think and write to rossell@goingezpat.info if you need support.
You can read all the others on the official website Business.gov
Talk to you soon
Rossella
