Some of the most important law changes taking effect on 1 January 2025
At the start of every year, the Dutch government implements law changes. Here is a summary of some important changes that take effect on January 1. NL Times also wrote a comprehensive summary of all law changes, and an overview of the new rules that will impact your wallet the most.
As the government was in the process of changing hands for the first half of the year, the new Cabinet only took office in early July, there are not many big changes taking effect on January 1.
The Netherlands is getting an extra income tax bracket next year. Currently, the Netherlands works on two income tax brackets. Anyone earning over 75,518 euros per year pays the high rate of 49.5 percent, while anyone earning less pays 36.97 percent. From next year, there will be an additional income tax bracket. The rate in the highest bracket will remain at 49.5 percent, while the one in the lowest bracket will drop to 35.82 percent. In between there will be a middle bracket for people earning between 38,089 and 75,518 euros per year, with an income tax rate of 37.48 percent.
Students who fell under the loan system can get some compensation next year. Students are entitled to this allowance if they studied for at least 12 months between 2015 and 2023 when the basic study grant was abolished and the loan system applied, were entitled to student finance, and obtained their diploma within ten years. The amount of the allowance depends on the number of years studied under the loan system. It is 34.17 euros per month. “You will only receive this amount for the official (nominal) duration of your studies and if you have obtained your diploma.” It amounts to approximately 1,640 euros for students who studied under the loan system for four years. More information here.
As of 1 January 2025, the Tax Authority will fully enforce the new laws against false-self employment. Companies and organizations that hire people as freelancers for work that they do not perform independently may face fines or additional tax assessments.
Over 6,000 households will end up below the poverty line due to a combination of regulations. They will receive a fixed allowance from their municipality in the coming years. In 2025, these households will receive an amount of 1,000 euros. According to the government, this amount should be sufficient for more than 95 percent of the affected households. Households with a larger deficit can contact the municipality for additional special assistance. More information here.
