72 new laws & rules take effect in the Netherlands from January 1, 2022

Several dozen new laws, rules changes, and regulations will take effect in the Netherlands on January 1, 2022. Every year, NL Times compiles a roundup of these changes once the government confirms they will be implemented.

This year's list includes the 2 euro per day tax free allowance to compensate for work-from-home costs, income tax changes, Long Covid healthcare cost coverage, a reduction in mortgage interest tax deductions, corporate income tax reductions, and changes to the Civic Integration Act which affect all new immigrants.

The following is a list of 72 changes divided into the categories of Work & Income, Care & Health, Families & Relatives, Housing & Living, Business, and Government & Security.

Work & Income

• The minimum wage will increase by just under 1.5 percent. The rate of increase can vary based on age, number of hours considered “full time”, and whether someone is paid per hour, day, week or month.
• Employers can provide a tax-free reimbursement of 2 euros per day to employees wholly or partially working from home.
• The official pension age for AOW will increase by three months to 66 years and 7 months. It is expected to rise to 67 years by 2024.
• Eleven different benefits payouts, including the AOW pension, will be adjusted in line with the minimum wage increase.
• Workers who are laid off will generally be entitled to a maximum of 86,000 euros in transition payment, up from 84,000 euros. Those earning a gross above that amount will be entitled to a full year of salary, depending on the amount of years the person worked for the firm.
• The tax credit for workers will rise by a maximum of 212 euros for anyone earning between 36,649 and 109,345 euros.
• The general tax credit will increase by roughly 1.5 percent for many earning a maximum of 69,398 euros annually.
• The basic income tax rate will be reduced from 37.10 percent to 37.07 percent for those earning up to 69,398 euros annually.
• Tax deductions for mortgage interest, personal situations like alimony and healthcare, and other costs will be capped at a maximum of 40 percent, down from 43 percent.
• The self-employed workers tax deduction will fall from 6,670 euros to 6,310 euros. It will be reduced annually until it reached 3,240 euros in the year 2036.
• The Box 3 assets tax will allow for a tax free allowance of 50,650 euros, or a maximum of 101,300 euros for those with a tax partner.
• The IACK tax deduction for families with dependents will be reduced by up to 281 euros to a maximum of 2,534 euros.
• Families with at least one dependent, and where one adult partner lives abroad, may no longer qualify for the IACK tax deduction.
• Workers will be able to build up rights more quickly to participate in works councils at their employer. Voting rights will be allowed after three months on the job, and someone can stand for elections after six months. Temporary workers will be allowed to vote and stand for election after 18 months.
• People may be eligible for a 1,000 euro training and development budget if they are not eligible for courses from their employer. (added Dec. 29)

Care & Health

• The basic health insurance package will include two weeks of hotel or holiday home stay for patients requiring CAR-T cell therapy, but who do not live near an appropriate medical center.
• The basic health insurance package will reimburse home electricity costs for operating a mechanical respirator.
• Long Covid sufferers will be able to claim the costs of a speech therapist, 50 fysio therapy treatments, 10 hours of occupational therapy, and up to 7 hours with a dietician from their basic health insurance provider.
• Some personal contributions for different healthcare treatments changed, but the maximum contribution per treatment remains 250 euros.
• The healthcare deductible remains 385 euros, though people can elect to increase the deductible to reduce their insurance cost.
• The ban on smoking in the workplace will be expanded to include every business sectors. This previously included the hospitality sector, publicly accessible buildings, and semi-public facilities, like train stations and hospitals.
• All cigarette vending machines will be banned from January 1. This will also make it nearly impossible for hospitality businesses to sell tobacco products.
• Municipalities will be allowed to require home purchasers to live in their homes, and not rent them out as investment properties. The law allows cities to enact limits based on different attributions like official home value, and neighborhood.

Families & Relatives

• Childcare benefits will be increased. Parents can receive subsidy for a maximum of 230 hours per month, based on a per hour rate of 8.50 euros for daycare, 7.31 euros for after school care, or 6.52 euros for a guest parent. The amount of subsidy depends on household income and number of children.
• The child budget benefit will increase by 70 euros per child from the second child.
• Child support payments for separated parents will increase by 1.9 percent.
• Alimony payments for separated partners will increase by 1.9 percent.
• Stillborn children may be filed in the official registry on the condition that the family was going to live in the Netherlands at the time of registration.
• Before July, the requirement for childcare staff will be relaxed to allow half of group leaders to be trainees, instead of one in three group leaders. (added Dec. 29)

Housing & Living

• The upper limit for social housing rent will rise to 763.47 euros per month.
• The mortgage interest tax deduction will fall from 43 to 40 percent, depending on household income.
• The National Mortgage Guarantee (NHG) will rise to a maximum of 355,000 euros, or 376,300 euros with energy-saving investments in the home.
• Elevators in new residential buildings will be required to provide more protection in the event of a fire.
• Rules restricting the provision of housing rental benefits will be relaxed so that parents who are residents, but living with a child who has not yet received a residence permit, will be eligible.
• The housing transfer tax will be waived for first-time buyers under the age of 35.
• Home buyers aged 35 and up who will reside at the property will pay a transfer tax of 2 percent.
• People receiving a home their main residence out of unexpected circumstances, such as in a divorce or as the result of a partner’s death, may be exempt from transfer tax, or may pay the lower 2 percent rate.
• The housing transfer tax rate will be 8 percent for those who do not qualify for an exemption, or the lower 2 percent rate.
• Purchases of homes under certain conditions from housing corporations and some developers (VoV-woningen) may be exempt from transfer tax to make them more available for low- and middle-income households.
• Municipalities will be required to register everyone without a home address. The municipality must provide a suitable mailing address if the person registering cannot provide a postal address.
• The energy tax will be temporarily be reduced by three points in 2022.
• The energy tax credit will temporarily rise by 265 euros just in 2022.
• The electricity rate used to calculate energy tax in the first bracket will be temporarily reduced by 0.05436 euros per kWh, excluding VAT. The energy tax rate in the second bracket will temporarily fall by 0.859 cents. The rate in the third bracket will be temporarily reduced by 0.201 cents. These reductions expire on January 1, 2023.
• The reduction of the landlord levy will make it possible for housing corporations to directly finance more housing projects. (added Dec. 29)
• The energy label rating of a home must be depicted on advertisements for the rental or sale of property. (added Dec. 29)

Business

• The residential addresses of entrepreneurs and company directors will be hidden from the Chamber of Commerce Trade Register, and will only be visible by tax authorities, attorneys, and debt collectors.
• Women must make up at least one-third of management board members and supervisory board members at large limited liability companies (BV), and public companies (NV).
• The self-employed workers tax deduction will fall from 6,670 euros to 6,310 euros. It will be reduced annually until it reached 3,240 euros in the year 2036.
• Workers will be able to build up rights more quickly to participate in works councils at their employer. Voting rights will be allowed after three months on the job, and someone can stand for elections after six months. Temporary workers will be allowed to vote and stand for election after 18 months.
• Employers can provide a tax-free reimbursement of 2 euros per day to employees wholly or partially working from home.
• The lower corporate income tax bracket will apply to companies earnings of up to 395,000 euros, an increase from 245,000 euros. The first tax bracket remains 15 percent. Earnings over the lower limit will be taxed at 25.8 percent, up from 25 percent.
• The Environmental Investment Allowance (MIA), which encourages companies to invest in innovative environmentally friendly assets, will increase significantly. A percentage of the cost of qualifying investments will be deductible from income tax and corporate income tax. There are three tax rates depending on the investment. The rates will rise from 13.5%, 27%, and 36% to 27percent, 36 percent, and 45 percent.
• Fishing companies will be required to recover at least 23 percent of fishing gear waste to cut down on plastic litter.
• Companies will be allowed to use prepaid dividend tax overages and prepaid gambling games tax overages against corporate income tax owed.
• Multinational companies will be able to offset 100% of the first million euros in losses against their profits, and 50 percent of losses above that amount.
• Multinational companies will be restricted in the amount of time in which they can carryover and apply losses.
• Companies will be allowed to deduct 20 percent of payable interest against profits, down from 30 percent.
• Multinational companies will face limitations in how they can deduct payments made in one country from pre-tax profits in another.
• The reduction of the landlord levy will make it possible for housing corporations to directly finance more housing projects. (added Dec. 29)
• Coal-fired power plans can operate up to a limit of 35 percent of maximum capacity for three entire years to reduce CO2 emissions. (added Dec. 29)

Government & Security

• New rules under the Civic Integration Act will take effect. Municipalities will play more of a role in guiding new immigrants and their families through the integration process, including refugees with residency rights. New residents with an integration obligation will be required to reach a functional Dutch-language level either by language courses that get them to a B1 level within three years, or, for younger people, through their normal education. A third option of self-learning is acceptable for those who cannot take part in the other options. There is also a Dutch society participation obligation, which can be achieved through work, internship, volunteerism, or schooling.
• Electric shock devices, like a training collar, will no longer be allowed to be used on dogs.
• The clients of someone forced into sex work will be punishable by up to four years in prison and a fine of up to 21,750 euros. This is only applicable when the client knows, or should have known, about a situation of forced prostitution.
• The clients of a minor forced into sex work will be punishable by up to six years in prison and a fine of up to 21,750 euros. This is only applicable when the client knows, or should have known, about a situation of forced prostitution.
• Adults will have to pay 11 percent more for a new passport, which will reach 75.82 euros. An identity card will cost 67.58 euros.
• The price of a passport for a child will cost up to 68.53 euros, up from 36.98 euros.
• Municipalities will be required to register everyone without a home address. The municipality must provide a suitable mailing address if the person registering cannot provide a postal address.
• The energy tax will be temporarily be reduced by three points in 2022.
• The energy tax credit will temporarily rise by 265 euros just in 2022.
• The electricity rate used to calculate energy tax in the first bracket will be temporarily reduced by 0.05436 euros per kWh, excluding VAT. The energy tax rate in the second bracket will temporarily fall by 0.859 cents. The rate in the third bracket will be temporarily reduced by 0.201 cents. These reductions expire on January 1, 2023.
• The possession and trade in raw materials for manufacturing illegal drugs will carry a harsher penalty. (added Dec. 29)
• Many serious traffic violations will carry a larger fine. The fine for using a handheld phone while driving will rise by 40 percent to 350 euros. (added Dec. 29)
• Tractors and other farming vehicles will be required to be registered, and drivers must be able to show proof of registration. (added Dec. 29)
• Convicted offenders can be held responsible for the costs associated with the official destruction of seized material, including weapons, fireworks, and drugs. (added Dec. 29)
• Prosecutors will face a lower burden of proof when trying to ban an organization categorized as "radical" or "extremist", and with an aim of overthrowing the democratic constitutional state. (added Dec. 29)
• It will become easier for prosecutors to claim an organization incites hatred or violence, or poses a threat to national security. (added Dec. 29)
• Top managers of radical and extremist organizations can be banned from managing another organization for three years or more. Violating the ban can lead to a prison sentence of up to two years. (added Dec. 29)