A new government will get to work

The new year sees the announcement of a new cabinet after the longest government formation in Dutch history of 271 days. The new line-up, led by returning Prime Minister Mark Rutte, will be officially presented to King Willem-Alexander on 10 January and pose for the traditional photo on the steps of Palace Noordeinde.

Things will also change at a local level, with city council and other forms of local elections taking place on 16 March 2022. Good news: you don’t need to be a Dutch citizen to vote in these.

Changes to Dutch finance & taxes

2022 brings a number of adjustments to the Dutch tax system. For example, the lowest rate of income tax, payable on income up to €69,398, will decrease slightly, from 37.1% to 37.03%. 

The allowance for non-taxable assets will increase from €50,000 to €50,650 per person.

And in response to the pandemic, a tax-free home working allowance of up to €2 per day per employee has been set. The tax-free travel-to-work allowance of up to €0.19 per kilometre will remain, but only for the actual days worked in the office.

For internationals who want to take advantage of the 30% tax ruling, the minimum salary threshold after the 30% reduction rises to €39,647 (from €38,961 in 2021). A minimum salary of €30,001 after the 30% reduction is applicable for those who have completed a Master's degree and are younger than 30 years old (in 2021 it was €29,616).

If you want to know more about the 30% ruling, click here. If you’re looking for help negotiating the ins and out of Dutch taxation ahead of 1 May, the deadline for tax returns, check out the tax and financial advisors listed on our partner page.

Handy to know: entrepreneurs are also getting a break as the low corporate tax rate (VPB) of 15% will apply for profits of up to €395,000 (up from €245,000).

Civic integration changes

A new civic integration (inburgering) system came into effect on 1 January 2022, putting municipalities in charge of implementing the process. City authorities will be responsible for placing newcomers in a Dutch language course and drawing up personal integration plans. While the new legislation raises the desired language level from A2 to B1, this is unlikely to be enforced in 2022. It’s also useful to know that Turkish citizens will no longer be exempt from civic integration. You can find out more on the government.nl website.

Salary thresholds for immigration

New salary thresholds have been set by the IND for the various categories of newcomers. The limits apply to gross monthly salary, excluding the 8% holiday allowance.

  • Highly skilled migrants from 30 years of age or key personnel Intra-Corporate Transferee: €4,840 (was €4,752)
  • Highly skilled migrants younger than 30 years or key personnel Intra-Corporate Transferee: €3,549 (was €3,484)
  • Orientation year or lower salary threshold: €2,543 (was €2,497)
  • Blue Card holders: €5,670 (was €5,670)

Learn more about the 2022 salary thresholds for more immigration situations.

Changes to some work permits

The validity of some work permits has also been extended from one to a maximum of three years (unless the duration of the employment contract is shorter). This primarily affects residents with a combined residence and work permit (GVVA), a work permit under International Trade Regulation, or the regulation for essential start-up personnel.

Family matters

Child benefit payments (kinderbijslag) will increase on average by €20 per child per year. The child budget payment (kindgebonden budget) will increase by a maximum of €70 for parents with two or more children.

The maximum hourly rate used by the tax authorities to calculate the childcare allowance a family is entitled to for daycare or other childcare costs rises to €8.50 (from €8.46) for children under 4 years old and to €7.31 (from €7.27) for children at primary school.

And looking further forward, from 2 August 2022, parents will be entitled to nine weeks of paid parental leave during the first year of a child’s life. This benefit will be equal to 50% of their daily wage (up to 50% of the maximum daily wage). It is in addition to the existing 16 weeks of maternity leave for the mother and 6 weeks of family leave for the partner.

Find out more

You can find more detailed information on the various changes that came into effect in 2022 on the IND website, business.gov.nl, the Dutch Government website (in Dutch) and on the websites of our partners DutchNews.nl and IamExpat.

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