Dozens of laws and rule changes take effect in the Netherlands on 1 January 2025

At the start of every year, the Dutch government implements a series of legal changes, regulatory adjustments, and adapted rules. Below follows a comprehensive summary of the new rules and laws set to take effect on January 1.

While the two houses of Dutch Parliament enter into recess on Friday, it remains a possibility that some items on this list will be adjusted before New Year's Day. The busy last political day of the year saw the Tweede Kamer push to modify or eliminate 165 million euros in spending cuts affecting healthcare education and training. The Cabinet also introduced plans to bring back the 130 kilometer per hour speed limit on some stretches of highway.

Any such changes will be noted below when announced, as will any further additions.

Work and Income

The minimum hourly wage is increasing on 1 January 2025. From then, people over the age of 21 will earn 14.06 euros per hour. Young workers earning the youth minimum wage will get between 4.22 euros per hour for 15-year-olds and 11.25 euros for 20-year-olds.

Welfare benefits and the state pension are linked to the minimum wage and will increase with it. The state pension age will remain 67 years next year.

The minimum wage for students working through a vocational training pathway (bbl) is also rising. Students over 21 will earn the regular minimum wage of 14.06 euros per hour. Younger students will earn between 4.22 euros for 15-year-olds and 8.65 euros for 20-year-olds.

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.

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.

The low-income benefit (LIV) that employers receive for workers with a low income lapses on 1 January 2025.

The wage cost benefit will be reduced for older employees with an employment contract on 1 January 2025 and will be abolished on 1 January 2026. This applies to older workers who started working after 1 January 2024. For those with employment contracts that started before 1 January 2024, the wage cost benefit will continue to apply.

From next year, people who work with children will be subject to a Dutch language requirement. Pedagogical staff in childcare must have at least level 3F or B2 for oral language skills. This means that childcare workers must be able to speak, have conversations, and listen in Dutch. Pedagogical staff working in preschool education must also master level 3F for reading skills. More information can be found here.

Pedagogical staff working with babies under 1 year will be required to get additional training on working with babies. More information here.

The transition payment in the event of dismissal will increase to a maximum of 98,000 euros.

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.

From 1 January 2025, there will be a specific exemption in the box 3 savings and wealth tax for Groningen and Drenthe residents in the earthquake area that make use of certain recovery or reinforcement measures by the government. If the government pays the contractor for the work, taxpayers do not have to declare this claim as an asset in the income tax return. The exception applies retroactively from 1 July 2023.

Family

Parents will receive higher allowances as a contribution to the costs of raising their children. The childcare allowance compensates the costs of up to 230 hours of childcare per child per month. For parents earning up to 47,403 euros, the government will compensate 96 percent of childcare costs. Parents with higher incomes get less compensation. In the highest income group of 226,546 euros or higher, the childcare allowance covers 33.3 percent of the childcare costs for the first child and 67.1 percent for every child after that. The full table of income scales can be found here.

The maximum hourly rates for childcare are going up. Next year, the maximum hourly rate for daycare is 10.71 euros, for after-school care is 9.52 euros, and for childminder care is 8.10 euros.

The child benefit is also increasing to 281.69 euros for kids up to the age of 5, 342.05 euros for children between the ages of 6 and 11, and 402.41 euros for teenagers aged 12 to 17. Parents who have high costs for their children may qualify for a double child benefit, for example, if the child lives somewhere else due to illness or for their education, or if the child needs intensive care at home. More information is available here.

The child-related budget is also increasing, by a maximum of 75 euros per child. Check here if you qualify.

Foster parents will receive a higher allowance for the costs of caring for and raising their foster children. Parents apply for the allowance through the organization that placed the child with them. In 2025, the foster care allowance will increase by 3.7 percent.

The free school meal program will continue next year “for pupils who need it most,” also in the Caribbean Netherlands.

Alimony will increase by 6.5 percent on January 1.

The cost of applying for a passport and identity document will increase. In 2025, a passport will cost a maximum of 86.85 euros for adults and 65.70 euros for children aged 17 and younger. ID cards will cost a maximum of 78.59 euros for adults, and 42.35 euros for those aged 17 or younger.

Business

For large companies, the government is relaxing the interest deduction restriction in corporate income tax so that companies can deduct more interest expenses from their taxable profit. This used to be a maximum of 20 percent. From 2025, it will be 24.5 percent.

From 2025, entrepreneurs will pay the same tax levy for delivery vans as for passenger cars. Entrepreneurs will also pay taxes when they buy a van. How much depends on the van’s CO2 emissions.

The Digital Operational Resilience Act (DORA) will apply to financial institutions or businesses that deliver IT services to financial institutions from January 1. This EU law is intended to make financial institutions more resilient against cyber threats. DORA obliges financial institutions to take measures for risk management and security of IT systems and to report incidents. More information here.

The conditions for inheriting a company or receiving one as a donation are likely to change on 1 January 2025. From then, the continuation requirement for the business succession scheme (BOR), through which the entrepreneur pays less or no inheritance or gift tax, will be shortened from 5 to 3 years. This requirement means that you must continue with the activities of the company for 3 years after acquisition. The tax-free value of a company is also increasing. Next year, entrepreneurs won’t pay any gift or inheritance tax up to a business value of 1.5 million euros. For businesses worth over 1.5 million euros, the exemption will be reduced from 83 percent to 70 percent.

Entrepreneurs buying new real estate like commercial property via share transactions will pay a 4 percent transfer tax (obv) from 2025. Currently, there is no transfer tax or VAT on a transfer via a share transaction due to the overlap exemption. In the case of direct delivery of new real estate, the seller pays 21 percent VAT.

From 2025, entrepreneurs will calculate the purchase tax for a plug-in car in the same way as for a petrol car. The separate tariff for buying an electric car disappears on January 1.

Next year, there will be some changes to the small business scheme (KOR). The mandatory minimum application period of 3 years expires, and entrepreneurs will no longer have to wait 3 years before being able to apply for the scheme again with another business. “The waiting period will start from the quarter in which the scheme stops until the following calendar year.” From next year, small business owners can also use the small business scheme that applies there in other EU countries, while entrepreneurs from other EU countries can also use the Dutch KOR. The total annual turnover in the EU must remain below 100,000 euros. More information here.

The SME profit exemption for small and medium-sized enterprises will decrease from 13.31 to 12.7 percent in 2025. More information here.

The tax in box 2 for substantial interest, applicable to partners in companies or a director-majority shareholder, for example, is decreasing from 33 to 31 percent in the top bracket (taxable income of 67,804 euros or higher). More information here.

The lower excise duties on petrol, diesel, and LPG that applied in 2024 will also apply in 2025. Find the rates here.

Next year, it will be easier to let employees with a permanent contract work overtime. More information here.

The gambling tax is increasing from 30.5 percent to 34.2 percent next year. This tax will rise further to 37.8 percent in 2026.

Education

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.

From January to July 2025, the basic study grant for students living at home is 103.78 euros. Students living away from home will get 338.68 euros. The supplementary grant will be 424.57 euros for students living at home and 451.97 euros for students living away from home.

From next year, all teaching staff must have a valid certificate of good conduct (VOG), including employees of private supplementary education. “This specifically concerns teaching staff who perform work at school or on behalf of a school. Such as tutoring, homework supervision, test or exam training.”

On 2 January 2025, the National Archives will make the largest war archive of the Netherlands public. More information here.

Healthcare

There will be some changes to basic health insurance next year. For example, the basic package will now compensate for exercise therapy for the lung disease COPD. It will also cover more rehabilitation for the elderly. The deductible remains 385 euros, and the personal contribution for medicine remains a maximum of 250 euros. Some personal contributions for certain medical expenses, such as maternity care and hearing aids, may increase slightly next year. More information here.

The personal contribution for people receiving Social Support (WMO) from their municipality will increase from 20.60 euros to 21.00 euros per month as of 1 January 2025.

From next year, people traveling due to illness or disability will no longer have to make complicated calculations when deducting these transport costs, the government said. Next year, a fixed amount of 0.23 euros per kilometer is deductible for visiting a doctor, hospital, or pharmacy. Travel costs incurred by taxi or public transport, as well as parking, ferry, and toll fees, will remain deductible against the costs incurred. People who have additional transport costs due to a serious illness or disability may also deduct a fixed amount of 925 euros. The fixed amounts make it unnecessary to keep receipts for fuel or insurance.

Housing

As of 1 January 2025, the National Mortgage Guarantee (NHG) limit is 450,000 euros. For homebuyers investing in energy-saving facilities, the NHG limit increases to a maximum of 477,000 euros. The once-off premium for taking out a mortgage with NHG will decrease from 0.6 percent in 2024 to 0.4 percent in 2025.

The income limits for social housing are indexed annually. To qualify for social housing from 1 January 2025, single-person households must earn 49,669 euros or less, and multi-person households must earn 54,847 euros or less.

Private sector landlords may increase rents by a maximum of 4.1 percent in 2025. In the mid-range rental sector, the maximum increase is 7.7 percent from 1 January 2025, and in the social rental sector, it is 5 percent from 1 July 2025. Both social housing and mid-range rentals are subject to rent regulation. Their rents can’t increase above the maximum rent price attached to the home’s points on the national valuation system. The rent of rooms, trailers, and lots can also increase by up to 5 percent from 1 July 2025. More information here.

Energy, climate, and environment

Next year, the supply of some agricultural goods will fall under the high VAT rate of 21 percent. This includes poultry, cattle, animal feed, and seeds for vegetable and fruit cultivation. The high VAT rate will also apply to grains and legumes not intended for human consumption and slaughterhouse waste. More information here.

Next year, the nitrogen user standard will be 20 percent lower in nutrient-polluted areas - areas with too much nitrogen and phosphate in the water. This is a measure to improve water quality. More information here.

The government wants to increase the fixed part of the purchase tax (bpm) on passenger cars by approximately 200 euros from January 1. The amount may still be adjusted on inflation. The variable part of the bpm, the part that depends on the CO2 emissions of the passenger car, will not change.

From next year, all farmers, including arable farmers and fruit growers, must submit data on the supply and removal of their animal and artificial manure.

There will be fewer phosphate and animal rights next year when trading outside the family. When farmers sell or trade their rights, they’ll be skimmed off and removed from the market. “This means less livestock and manure.” The manure ceiling will be lowered on January 1, so the amount of manure also has to decrease. More information here.

Beekeepers must register the location of their bees and bumblebees from 1 January 2025 by applying for a Unique Company Number (UBN). Beekeepers with colonies at multiple locations must apply for multiple UBNs.

From next year, all new buses must run on 100 percent renewable energy or fuel.

Other

Traffic and other monetary fines will increase on January 1. The fines for most violations will be 10 euros higher than this year. Speeding fines, which are progressive, will be up to 15 euros higher.

The maximum fares that taxis and other pick-up services can charge is increasing on January 1. For passenger car taxis, the maximum starting fee is increasing from 4.02 euros to 4.15 euros, the maximum kilometer fare from 2.96 euros to 3.05 euros, and the maximum time fare from 0.49 euros to 0.50 euros. More information here.