Ciao Going Expat People,
Today, as per every year, we talk about Prinsjesdag. We’ll learn what are the news and what do they mean for us and our pockets.
First, a short intro about what Prinsjesdag is.
Prinsjesdag is one of the most important days in the Dutch political calendar.
Every year, on the third Tuesday of September, the government presents its financial plans for the upcoming year. Specifically they discuss how taxes will change, which benefits will be adjusted, and how the national budget will be allocated.
It’s the moment when the Dutch government essentially says: “Here is what life in the Netherlands will look like financially next year.”
For anyone living and working in the Netherlands, including internationals, expats, and entrepreneurs, Prinsjesdag is much more than a cultural event. It directly affects:
- Your salary and taxes
- Your benefits and allowances
- Your pension and employment conditions
- Your cost of living
- Your business deductions if you’re self‑employed
For expats, it’s especially important because measures like the 30% ruling, travel allowances, income tax brackets, and employer benefits can shift significantly from one year to the next. Understanding Prinsjesdag helps you plan ahead, negotiate your salary, and avoid surprises when your January payslip arrives.
News and how they affect everyone.
Labour Tax Credit Increases (+€173)
The arbeidskorting, a tax discount for people who earn income from work, increases by €173, reaching a maximum of €5,929 in 2027.
Why it matters? Because this directly increases net salary for employees and freelancers. However, lower and middle incomes benefit the most.
Top Tax Bracket Frozen (€78,426)
The threshold for the 49.5% income tax rate remains fixed at €78,426.
Because the threshold doesn’t rise with inflation, more people will gradually fall into the highest tax bracket (bracket creep). And this means that higher earners, senior specialists, and international hires can have an important change in the amount of tax they have to pay. Therefore, be aware that higher salary doesn’t always mean more money in your wallet.
Travel Allowance Increased to €0.25/km (Retroactive)
The tax‑free commuting allowance rises from €0.23 to €0.25 per km, retroactively from 1 January 2026.
This is so important for new comers who have been promised a commuting allowance that covers not even half of their train ticket or gas expense.
If they offer you less then €0.25 you know that they are playing you.
Expat Ruling Reduced (30% → 27%)
Although this is ancient news, in fact the decision has been made already some time ago, and it is crucial to underline it, for you guys to know what to expect.
Finally, from 1 January 2027, the maximum tax‑free portion of salary under the 30% ruling drops to 27%.
Employees who received the ruling before 2024 keep the 30% rate. And news on the salary thresholds for eligibility
Pension Cap Frozen (€137,800)
The pensionable salary cap of €137,800 will be frozen for six years (2027–2032).
Why it matters? Because employees earning above this cap cannot build pension over the excess amount. In fact, freezing the cap means inflation will gradually reduce the real value of pension accrual.
Werkkostenregeling (WKR) Free Space Increased (2.00% → 2.16%)
The WKR allows employers to give tax‑free benefits (sports, home‑office costs, team events). Therefore getting a higher percentage means more room for tax‑free extras which are useful for employee well-being budgets and hybrid‑work reimbursements.
Entrepreneurs & Freelancers: Major Reductions
Startersaftrek → €10 (2027) and abolished (2028)
This deduction used to support new entrepreneurs. While reducing it to €10 makes it symbolic, its abolition marks a shift away from tax incentives for freelancers.
Zelfstandigenaftrek → €900 (2027)
This deduction continues to shrink, aligning tax pressure between employees and freelancers.
Starting a business becomes less fiscally attractive and more difficult to make it sustainable. Freelancers will rely more on actual income rather than tax benefits.
Healthcare Cost Deduction Abolished (2028)
The deduction for specific healthcare costs will be fully abolished. Perhaps people with high medical expenses lose a tax relief option. Although the government aims to simplify the tax system, but this reduces support for vulnerable groups.
Fuel Excise Discount Extended to 2028
The temporary discount on petrol and diesel continues. The government has implemented these measures since the start of the war in Ukraine to keep petrol prices under control for consumers.
Commuters and logistics companies benefit from slightly lower fuel prices.
I hope the info listed here help you understanding better what’s happening in the Netherlands.
If you need any support to move to the county and/or with your business, please get in touch
Talk to you soon.
Written by Rossella Davì
