About the Prinsjesdag in the Netherlands

In the Netherlands, Prinsjesdag, or Budget Day, takes place every year on the third Tuesday of September. This historic event marks the official opening of the Dutch parliamentary year. During Prinsjesdag, the King delivers the Speech from the Throne, outlining the government’s key plans and policy priorities for the year ahead.

But did you know that Prinsjesdag hasn’t always been celebrated in September? Originally, Budget Day used to fall on the first Monday of November. Later, it was moved to the third Monday in October. Unfortunately, this didn’t give Parliament enough time to review and finalize the budget by January 1st. So, in 1848, Prinsjesdag was pushed forward to the third Monday in September.

The Dutch government announces the budget for 2025

In his first speech since Prime Minister Dick Schoof assumed office, the Dutch King opened by expressing his immense pride in the Dutch Olympic team’s impressive performance at the Paris Olympics. He highlighted the athletes as a shining example for the entire country, emphasizing that with "talent, dedication, and perseverance, we can accomplish anything—even when faced with setbacks."

The King also addressed the key issues highlighted by last November’s election results, focusing primarily on concerns around migration, the pressure on the Dutch housing market, and the impact on family incomes. He further acknowledged worries about the economy, the quality and accessibility of healthcare and education, energy supply, climate change, and both national and international security.

Household purchasing power in the Netherlands is now expected to grow by an average of 0.7 percent in 2025.

Key policy changes influencing these numbers include:

1. 30% tax ruling changes: Instead of completely phasing out the 30% tax break for highly skilled migrant workers, it will be reduced to 27%.

2. New income tax bracket: A lower tax band will be introduced, reducing the income tax rate below the current 37% for lower-income earners.

3. Reduced transfer tax: The transfer tax for property investors and small landlords will drop from 10.4% to 8%.

4. Higher VAT: Value-added tax (VAT) will increase from 9% to 21% on accommodations, books, concerts, museums, theater performances, and other recreational activities.

5. Lower corporate taxes: Taxes for businesses will be cut by €1.5 billion annually.

6. Healthcare: will increase by € 6,50 per month

7. Building new homes: the Dutch government plans to build 100.000 new homes per year

8. Education: more money towards education in general and free school meals will continue.

Get in touch with Financial Consultancy Holland

With these financial shifts, navigating through your financial planning and investment decisions can seem daunting. Financial Consultancy Holland stands ready to assist with personalized advice and tailored solutions that cater to these changes. Whether it's optimizing your salary benefits, revising your investment strategies due to box 3 taxation changes, or making the most out of the new housing and mortgage regulations, our team of experts is here to guide you. Don't navigate these changes alone. Let us assist you in optimizing your financial strategy to make the most of the 2024 financial adjustments.

Do you have questions about your financial situation in the Netherlands or would you like to get in touch with us? You can do this via our contact form and we will contact you as soon as possible. Looking forward!