On the 31st of December, 2018, when the clocks struck midnight, a variety of new regulations and rules came into force with the beginning of 2019. Learn about the changes in effect from the 1st of January, 2019.
Amendments affecting families
In 2019 several amendments relevant to families were introduced. One of them is the partner leave increase from 2 to 5 days for partners of new mothers working 5 days a week. The allowed leave of partners working part-time corresponds to their hours of work for one week.
This year childcare benefit also increases to support families in covering the costs of afterschool care and day-care. Meanwhile the quality requirements for childcare providers are becoming more stringent. Previously one employee could provide care for a maximum of four children, but now this number has been reduced to three. Also now childcare providers must give feedback regarding the pedagogical development of children.
Income, pensions and employment in the Netherlands
The maximum term of the thirty percent reimbursement ruling was reduced from 8 to 5 years. This ruling allows highly qualified migrants meeting particular criteria to receive thirty percent of their salaries free of tax. The reduction of this benefit will be in transition until 2021.
2019 marks the beginning of changes in the tax system of the Netherlands. General and employee tax credits are increasing and people who work in the country can count on more money to take home. Other amendments planned by the government concern the increase of specific unemployment benefits, transition allowances for dismissed employees and the minimum salary.
Corporate income tax is also in transition: the rate for Box 1 is currently at 16.5% and the rate for Box 2 is at 25%. State pensions are also going up and people of retirement age will have the advantage of an increased tax credit.
Developments concerning healthcare in Holland
“Eigen risico” or own risk remains frozen at EUR 385, while the basic government-set package has been extended. On the other hand, premiums have increased this year. To compensate for the higher premiums per month, the healthcare allowance of people meeting certain requirements has also increased.
In addition, the personal contribution to the cost of prescribed medicines is limited to EUR 250. Any expenditure made above this threshold must be reimbursed by the insurer.
Increasing consumer prices
The low VAT rate has increased from 6 to 9%. Therefore water costs, groceries, books, hair styling services and many other things will cost more. In addition to paying more for food, the gas you use at home will be more expensive, as its tax increases. On the other hand, the electricity tax will decrease.
2019 changes in housing: mortgages and rent
The rent paid by tenants may rise by no more than 5.6% from the 1st of July, 2019. For persons occupying social housing the maximum rent per month is set at EUR 720.42. Now mortgages can be borrowed only for ≤100% of the property value. Costs accrued when purchasing a house, e.g. notary, appraisal and consultancy fees, cannot be covered from the mortgage.