Changes to Dutch Law in 2023

11.02.2023

What you should know

In many countries, a new year brings in a host of changes to various laws and regulations. The Netherlands – Wittenborg University of Applied Sciences’ home base – is no different. This year, residents of the Netherlands will see changes to local laws concerning taxes, income, property, childcare, benefits and travel among a host of other areas. As we start another year, it is good to make sure you are up to date on the rules of the country. This article will provide a brief overview of the major changes to Dutch law in 2023.

Income, energy and rent

National minimum wage for salaried workers is set to increase this year for each age group, which is good news for some. Income tax will decrease by 0.11% for those making up to 73,071 euro per annum, making their new tax rate 36.93%, which is projected to save people just over 100 euros across the entire year. The tax-free travel allowance will be increased from 19 to 21 cents per kilometre, and the annual labour tax credit will increase, which will save workers in the Netherlands up to 500 euro every year. State pension will increase for both single and cohabiting people, and the pension age will be raised by three months to 66 years and ten months. The unemployment benefit rate will also increase by 10.15% in 2023. Employees who have come into contact with hazardous substances on the job, resulting in a diagnosis of lung cancer, allergic asthma or chronic painters' disease, will be able to apply for government compensation. The lowest corporation tax bracket will be lowered from 395,000 euro to 200,000 euros, with the lowest rate rising from 15% to 19% in each year.

The STAP budget, a programme meant to subsidise training for working and jobseeking residents, will be revised this year to improve its quality, with the application period being postponed until 28 February. Those enrolled in higher education in the Netherlands for the 2023-2024 period who do not live with their families will be eligible for a benefit of around 165 euros per month to combat the rising cost of living. However, the interest rates on student loans are set to rise to 0.46% for those at universities and 'hogeschools' (universities of applied sciences), and 1.78% for those in vocational courses.

Households and individuals on reduced incomes will be able to apply again for a one-off energy allowance of 1,300 euros to help cover the costs of utilities. Meanwhile, all households and individuals regardless of income will be subject to a price cap of 1.45 euros per cubic metre of gas, and 0.40 euros per kilowatt hour of electricity for the first 1,200 cubic metres of gas and 2,900 kilowatt hours of electricity throughout the year. Any excess consumption of gas or electricity will be subject to the free market, being charged at rates determined by energy companies. On this note, the government is attempting to incentivise sustainable home renovations, with those looking to purchase solar panels no longer having to pay the VAT. This will expire on the last day of 2023, meaning the VAT will be reset to 21% next year.

The national rent allowance will increase, meaning people with a monthly rent of 808.06 euro will be able to receive financial assistance, the monthly rate of which will increase by up to 16.94 euro. The Netherlands is further looking to ameliorate the current housing crisis, with plans to erect around 15,000 temporary or short-lease properties around the country. Parents looking to give their kids an advantage on the housing market will be faced with greater constraints, as the tax-free donation for housing, known as the 'jubelton’, is being slashed by more than half. The jubelton is a one-off, tax-free donation which parents can give their kids for the purpose of buying or renovating a home. In 2022, the tax-free amount was 106,671 euros; in 2023, the jubelton will be 28,947 euros, and in 2024, the jubelton will be abolished. Further, the transfer tax rate for the acquisition of immovable property will increase from 8% to 10.4% this year. However, there is an exemption for those aged 18-35, and those who plan to live in newly-purchased property will be subject to a reduced rate of 2% if they are over the age of 35 years old.

Childcare, healthcare and travel

Low-income parents will experience an increase in childcare benefits for the first quarter of 2023, which is meant to combat rising childcare costs. Families will also benefit from a change in legal stipulations regarding benefits and adult children in the home. In the Netherlands, there is something known as the 'kostendelersnorm’ or cost-sharing standard, which reduces the benefits of households with one or more adults over the age of 21 living in the home. The cost-sharing standard age will be raised to 27 in 2023, allowing parents to retain their full benefits, while a child may live at home – as is increasingly popular amidst the housing crisis – and earn their own salary for themselves.

Healthcare regulations will face some changes in 2023, with premiums increasing as the number of people eligible for a healthcare allowance increases due to changes to the income thresholds. The healthcare allowance people get will additionally rise. From April, it will be possible to book a free Non-Invasive Prenatal Test (NIPT). This is a blood test which can determine various chromosomal abnormalities; currently, the NIPT costs 175 euros. The government is also modernising the rules for blood and plasma donations for non-heterosexual men. Previously, donations were only permitted if they were in a monogamous relationship for over a year or had been celibate at least four months. In 2023, eligibility will be determined on a case-by-case basis.

Non-air travel will likely become more popular, since the tax on flights will rise from 7.95 euro to 26.43 euro for every ticket. Further, there will be new travel rules for the EU, with the introduction of the European Travel Information and Authorisation System (ETIAS). The ETIAS is a visa-waiver programme that will be implemented in November 2023, and applies to all nationalities that currently do not need a visa to enter Europe, which means the USA, UK, Canada and Australia. Under this new system, visa-exempt travellers will need to register online with the ETIAS to enter countries within the Schengen region for a stay of up to 90 days per entrance; anybody looking to stay for longer will have to apply for the relevant visa or permit. After application, they will be eligible to enter for up to three years, after which they will have to re-register. Travellers under this system will be screened for security or health risks before reaching the border.

Miscellaneous

Those who like to smoke cigarettes or drink fizzy sodas might want to start looking for alternatives, as the price of tobacco products are set to rise by an average of 1.22 euro or more starting in April, while tax on fizzy drinks will rise to around 20.20 euro per 100 litres. Shrewd buyers can rejoice, as there will be a ban on misleading prices and discount information. The move means that shops will not be able to raise prices only to lower them soon after, giving the false illusion of a discount. According to the 2023 rules, the original price must be the lowest asking price within at least 30 days before the sale. This year will see the introduction of a 15-cent deposit on cans, meaning you can now return your cans to your local supermarket or Gall & Gall for money if they bear the 'statiegeld’ symbol. Drivers and passengers on mopeds or ‘snorfietsen’ are now required to wear helmets or face a fine of 100 euros. Those who ride normal bicycles will be unaffected. The old sticker-based system for letting advertisers know whether you would like to receive promotional materials to your mailbox is being scrapped in favour of a digital system called InMijnBus, which you will have to register with online.

Finally, Netflix will be alienating a significant portion of its user-base by changing its rules regarding account-sharing across the world, including in the Netherlands. Rather than allowing multiple users, those who share their Netflix account information with someone living at a different address will be faced with an additional monthly fee. Make sure you share alternative websites with your fellow peers!