These legal changes will take place in the Netherlands in 2023
Here’s everything you need to know about the changes to Dutch law in 2023.
2023 will bring new Dutch tax laws
The Dutch tax system will be altered in a number of ways beginning in January as part of a set of policies unveiled by the government on Prinsjesdag in an effort to increase the purchasing power of citizens and residents.
First, the income tax rate for workers in the tax bracket for those making up to 73.071 euros per year will decrease by 0.11 percentage points in 2019 to 36.93 percent, saving them as much as 102 euros by 2023. People who work in the Netherlands will also see a boost in the labor tax credit, saving them up to about 500 euros annually. Additionally, the tax-free travel allowance will rise from 19 to 21 cents per kilometer.
However, the Dutch government has agreed to raise the wealth and corporation tax rates as well as the mining levy (a tax aimed at the revenues of energy businesses) in the Netherlands starting in January 2023. The lowest corporate tax bracket will be cut from 395.000 euros to 200.000 euros starting in 2019 while wealth tax rates will increase from 31 to 32 percent. The lowest corporate tax rate will also increase from 15 to 19 percent.
Higher excise taxes on cigarettes and other tobacco products (+1,22 euros from April 2023) and charges on carbonated beverages are additional modifications to the Dutch tax system (20,20 euros per 100 litres). Additionally, the government has agreed to raise the fee for airline tickets from 7,95 euros to 26,43 euros. Additionally, the existing gasoline excise duty reductions will last through the end of June.
The Netherlands' employment, earnings, and pension systems
Beginning on January 1, 2023, the federal minimum wage will increase. The (gross) minimum salary in euros for the upcoming year is:
Dutch benefits and allowances will also be impacted by the increased minimum wage. For instance, the state pension rate for married or cohabiting couples will increase to 968,86 euros per month. It will increase to 1.425,80 euros per month for single persons. The rate of unemployment benefits will rise by 10, 15% in the meantime.
State pension eligibility will increase to 66 years and 10 months in 2023 from 66 years and 7 months in 2022.
Housing, rental, and property tax changes
First off, the monthly rate of the national rent allowance will rise by up to 16,94 euros starting in 2023, making it possible for everyone paying a rent in the Netherlands of at least 808,06 euros to get financial assistance.
Since 2017, parents have been permitted to make a tax-free donation to their children in the amount of up to 100,000 euros to assist them in purchasing a home in the Netherlands. The maximum amount for this tax-free present, known as the jubelton, is being decreased to 27.231 euros as of January 1 and will be fully eliminated starting in January 2024 as a result of a decision by the government to change the laws.
The government announced on Prinsjesdag that the transfer tax rate would rise from 8% to 10%. However, the exemption rule for people between the ages of 18 and 35 that was implemented at the beginning of 2021 will remain in effect, as will the reduced rate of 2% for people over 35 who intend to live in their newly purchased property. Therefore, landlords, developers, and non-residential buildings will all be subject to the 10,4% rate.
From January 1, households in the Netherlands will pay a maximum of 1,45 euros per cubic metre of gas and 0,40 euros per kilowatt-hour of electricity. Low-income households will once again be eligible for a 1.300 euro energy allowance to help cover the cost of utilities. Only the first 1.200 cubic meters of gas and 2.900 kilowatt hours of electricity consumed annually will be subject to the price cap. Any additional gas or electricity used will be billed at the rates that each energy provider has established.
The government has also declared that solar panels would no longer be subject to VAT for anyone who wishes to make their home more environmentally friendly. Additionally, 15.000 so-called "fled homes"—temporary new construction or short-term rental properties—will be constructed in the Netherlands by 2023. However, the cap on the VAT for energy will be lifted on December 31, therefore the VAT rate will return to 21 percent in 2023.
Childcare and child benefits in the Netherlands
In 2023, the child benefit will also increase. As of January, the quarterly rates in euros are:
|Per child aged 0 - 5||269,76|
|Per child aged 6 - 11||327,56|
|Per child aged 12 - 17||385,47|
The childcare benefit will also grow to deal with the rising childcare expenditures.
As on January 1, young people will be permitted to stay at home for extended periods of time without it impacting their parents' benefits and allowances. This is another reform that will effect families. According to existing regulations, a child's income is taken into account after they turn 21; however, starting in January, this age will be raised to 27, thus parents will no longer have their benefits reduced if their adult children continue to live at home while working and earning their own income.
Student loans and STAP in the Dutch education system
The STAP budget will have some modifications in the upcoming year. The STAP budget was introduced in March 2022 and has thus far shown to be incredibly successful. The next round of applications will now commence on February 28, 2023, as opposed to January 1 as originally planned. This is due to the fact that the government requires time to put new policies into place in order to enhance the program and guarantee the caliber of the STAP-eligible courses. These actions entail strengthening the guidelines for training providers and ensuring that the instructors are qualified.
In order to aid with the rising cost of living, those who are enrolled in higher education in the Netherlands for the 2023–2024 academic year and who do not still live at home with their parents and family will be qualified to receive an additional 165 euros per month. The interest rates on student loans, on the other hand, will increase beginning January 1 to 0,46% for those enrolled in a university and 1,78% for those enrolled in a vocational program.
Dutch healthcare and insurance systems
The percentage of people qualifying for the healthcare allowance will rise as a result of adjustments made to the various income thresholds, while healthcare rates will increase starting in January. Additionally, the quantity of money they will get will increase.
Pregnant women will be able to schedule a free Non-Invasive Prenatal Test (NIPT) starting on April 1, 2023. A blood test called the NIPT can be used to find a variety of chromosomal abnormalities, including down syndrome. Parents currently pay 175 euros for the test.
Starting in January, there will be less restrictions on homosexual and bisexual males who wish to donate blood and plasma. Currently, only men who have been in a monogamous relationship for more than a year or whose most recent sex was more than four months ago are eligible to donate blood. Depending on their sexual history and whether or not they engage in safe sex, a questionnaire will be utilized in 2023 to decide whether or not a male who engages in sexual activity with other men can safely give blood. It will be decided on an individual basis rather than by a general guideline.
Employees who had employment where they were exposed to hazardous materials and were sick as a result of their work will be able to seek for compensation from the government starting in 2019. Only those with a diagnosis of lung cancer, allergic asthma, or chronic painter's disease will be permitted to enroll because the program is new.
Travel rules in the Netherlands
The new ETIAS visa waiver system for the European Union has been in the news for a time, but it won't go into force until 2023. The ETIAS program will be available to all nationalities who do not currently require a visa to enter Europe starting in 2019. (e.g. USA, Canada, UK, Australia).
Visa-exempt travelers must register online with ETIAS in order to enter Schengen nations (including the Netherlands) for a maximum stay of 90 days per entry under the ETIAS visa waiver program. The travel authorization is valid for three years after they apply and it is granted. Before the traveler enters European borders, the system will pre-screen them for any possible security or health issues.
Since the system is brand-new and may be challenging to understand, there is still time to learn more about it and consider what it might mean for you and your loved ones before it takes effect in November 2023. It should be noted that anyone entering the Netherlands with the intent to work, study, or remain for a period longer than 90 days must still apply for the necessary visa or permit.
Other changes that will occur in 2023 for expats
What other developments might foreigners anticipate in the coming year? Starting on January 1, 2023, all operators and passengers of mopeds will be required to wear helmets (snorfietsen). A 100 euro charge could be imposed for anyone who do not wear a helmet.
A brand-new digital system called InMijnBus will take the place of the letterbox decals "NEE-NEE" and "NEE-JA." From January, residents of the Netherlands will register their preferences on InMijnBus.nl rather than picking up a free sticker from their municipality.
The 15-cent deposit on cans will eventually go into effect in the new year, despite many first believing that the rule's implementation would be delayed. The rule will take effect on December 31, 2022, as originally announced two years ago.
Beginning January 1, false pricing and discount claims will be prohibited. In essence, this implies that shops won't be allowed to raise their prices one week, then drop them the next, deceiving customers into thinking the new price is a "good deal." According to the new regulations, the original price must correspond to the retailer's lowest price quotation from the 30 days prior to the start of the sale.
In some nations, the new method has already been in place for a few months, but Netflix will globally introduce its new account-sharing policies in January. Any client who shares their account in the coming year with someone who resides at a different address will be required to pay an extra monthly fee.