Dutch tax changes introduced since

Corporate income tax

Corporate tax is also facing changes: starting from 2019 corporate income in the amount of first EUR 200 0000 will be taxed at the rate of 19%, with the income over EUR 200 000 to be taxed at the rate of 25%. Further rate reductions are expected within the coming two years.

Consumer prices on the rise

VAT rates went up from 6% to 9%. This led to the fact that prices for groceries, water and regular services are now sensitively higher. Tax on gas is also expected to increase. The tax on electricity, however, will decrease.

Mortgage and rent

Important news about mortgages: starting from 2019 mortgages can only be borrowed for up to 100% of a premises value. Worth mentioning is that costs that a purchaser accrues when buying premises, such as notary, advice and appraisal fees, can no longer be financed from the mortgage.

In case you are not considering a purchase yet and are renting a house, you should be aware that from July 1, 2019 your rent may increase by a maximum of 5,6%.

Wage, wage tax and pensions

After long discussions unfortunate for numerous expats residing in the Netherlands, since January 01, 2019 the maximum duration of the 30% tax ruling has now been lowered to five years (it was eight years earlier). The mentioned tax benefit allows highly-skilled migrants, who meet certain requirements, to receive 30 percent of their salary free of tax charges.

There is a transition period foreseen for the cut to this tax benefit until 2021.

An increase in tax credit and general tax credit for Dutch employees has also been introduced since this year. Minimum wage level is also expected to be raised. Benefits for the unemployed and for those who have been dismissed should be improved as well.

Good news about the level of state pension, which has been increased, so those of pension age will benefit from a higher tax credit.

Developments in sphere of healthcare

The level of the so-called own risk (eigen risico) is still at the point of EUR 385 and the basic package provided by the government is now more comprehensive.

Nevertheless, medical insurance premiums have risen this year. For the sake of balancing the higher premiums it is envisaged that in case certain criteria are met, healthcare allowance should also be increased.