Dutch tax in 2022
2022 will bring various changes to the Dutch tax system. Some people will see their annual income tax decrease slightly, following changes to the first tax bracket. From 2022, anyone earning a salary of up to 69.398 euros per year will pay 37,07 percent tax (down from 37,1). There’s also some good news for entrepreneurs, as the low corporate tax rate (VPB) of 15 percent will apply for profits of up to 395.000 euros (up from 245.000 euros).
As was announced on Prinsjesdag, the government has introduced a tax-free allowance for employees who work from home. From January, companies will be able to provide employees with an allowance of two euros per day to cover the costs acquired from working from home (i.e. energy bills, cups of coffee).
The criteria used to determine whether couples are eligible for the income-related combination tax credit will change in January, which could mean that some couples may no longer qualify as tax partners. In better news, the new system for tax partners will ensure that you and your tax partner will receive the maximum benefits.
Employment, income, and pensions
The national minimum wage will be higher next year. From January, the (gross) minimum wage in euros from January is:
The state pension age in 2022 is 66 years and seven months, slightly higher than the 66 years and four months in 2021.
Housing, rents, and mortgages
The Dutch government has set a cap for rent increases in the Netherlands. From January 2022, landlords will only be able to increase rents for housing in the free sector by a maximum of 3,3 percent. Rents for social housing will remain frozen until July 1, 2022.
Anyone who owns a home in the Netherlands and earns more than 69.398 euros a year will see their mortgage interest deduction fall from 43 to 40 percent.
The official property valuation (WOZ waarde) of millions of homes will be affected by a new calculation system, which will come into effect in around 250 municipalities on January 1. Changes to property values could potentially have knock-on effects on tax rates for homeowners. Homeowners will also see their annual municipal taxes increase by an average of 2,1 percent next year. This amounts to approximately 850 euros extra compared to 2021, although the actual figure will differ greatly depending on where you live.
The cabinet has announced a three-step plan for overhauling the homeownership scheme in order to make it fairer for homeowners. The plan involves the removal of unintentional restrictions on mortgage interest deduction which should, for example, make it possible for most people to get interest deduction for the full value of their mortgage.
Finally, the controversial landlord levy for housing associations has been cut, with the government reducing it by 30 million euros per year from 2022, and municipalities will be able to ban property developers from investing in cheap to mid-priced housing in certain neighbourhoods.
Immigration and inburgering
Earlier this month, the government announced a new naturalisation (inburgering) system which would come into effect on January 1. In the new year, municipalities will play a vital role in guiding newcomers in the Netherlands who will go through the naturalisation process, helping them to secure a spot on a Dutch course and draw up a personal integration plan.
As part of the new system, the desired language level will (eventually) be raised from A2 to B1, and those looking to obtain Dutch citizenship will also become better acquainted with the Dutch labour market through an internship or (voluntary) work.
Furthermore, under the Foreign Nationals Employment Act (wet arbeid vreemdelingen), employees from outside of the European Economic Area (and Switzerland) will be granted a permit that allows them to work in the Netherlands for a maximum of two years.
Family and children
From August, a new parental leave scheme will see the government pay 50 percent of the parents’ wages for the first nine weeks of leave, guaranteeing all parents at least nine weeks of paid parental leave.
The child benefit will increase in 2022. The quarterly rates in euros as of January 1 are:
|Per child aged 0 – 5||230,69|
|Per child aged 6 – 11||280,13|
|Per child aged 12- 17||329,56|
Childcare facilities will now be obliged to provide the tax and benefits authorities with the childcare details for children on a monthly basis, which the government hopes will improve childcare benefit services for parents. In addition to this, from January, the government is also increasing the child budget (kindgebonden budget) by 70 euros per year for families with at least two children.
From January 1, a ban on smoking areas in office buildings will come into effect. This means all office spaces and company buildings in the Netherlands must be completely smoke-free from January. In addition to this, a ban on cigarette vending machines will apply to all catering establishments.
The new cabinet is set to be sworn in in 2022, with plans for Prime Minister Mark Rutte to formally announce his cabinet ministers in the second week of January. Take a look at some of the changes the cabinet has promised to make over the next four years.
Many households are set to see their energy bills increase next year. Rising gas and electricity prices mean that anyone with a contract where rates are set on January 1 will see prices rise. In order to offset this, however, the government has announced various schemes that will allow for significant compensation for affected households.
The company responsible for importing international newspapers to the Netherlands, Betapress, will no longer import weekday newspapers. This means that, from January, popular daily papers will only be seen on shelves over the weekends, but will be available digitally. The weekday editions will still be available online.
The government has banned the use of electric shock devices on dogs from January 1. Violation of the law will be an offence punishable by criminal law, although there will be exceptions to the ban for “certain government tasks in the field of safety and public order.”