Prinsjesdag 2025: What the Dutch Government’s Budget Means for You

Introduction

On the third Tuesday of September, every year, the Netherlands celebrates Prinsjesdag (Netherlands Budget Day) which dates back to the 18th century. This day, the Dutch King presents the financial plans of the government for the next year in the Ridderzaal (Hall of Knights) in The Hague. The ceremony is characterised by the pageantry that includes the Speech of the King, horse-drawn carriages and the opening of the parliamentary year. However, beyond the show lies the actual meaning; the release of the Dutch budget, which affects the citizens, residents and the economy at large.

In the case ofPrinsjesdag 2025, the announcements have a specific weight due to the failed Schoof I government and the unpredictable political situation preceding the elections in October. This does not only symbolise it to Dutch nationals, but also expats; it has a direct impact on expats ‘ income, taxes, healthcare, housing, education and long-term opportunities. TheDutch budget 2025 is thus significant for an individual intending to invest in the Netherlands’ budgetary prospects.

Political Context of Prinsjesdag 2025

The political situation predetermines this prudent and interim budget. The Schoof I cabinet collapse, led by Prime Minister Dick Schoof, had fallen earlier this year after coalition members PVV and NSC pulled out. The only thing that is left is a weak coalition of VVD and BBB, having only 32 seats in parliament. This small status allows only radical reforms, and the government is forced to introduce a safe budget, which is more focused on stability and consensus. 

This was a sensitive moment that was recognized in the annual speech of the King, who said: “We cannot suspend the everyday worries of people. In Dutch politics 2025, this budget is like a transition – stable enough to continue the regular operations of the government, but able to change with the new political developments which will happen after elections on October 29, 2025.” To most people, it is a delicate balancing act of ensuring that the citizens are at ease without being embroiled in political wars that may undermine vital initiatives.

Purchasing Power and Income in 2026

Purchasing power is one of the most pressing issues for both residents and expats. The projected growth in dutch purchasing power 2026of the government is average +1.3% in 2026, which is divided into the following:

• Workers: +1.2%
• Benefit recipients: +1.3%
• Pensioners: +1.5%

This implies that there should be a slight increase in the disposable income among the majority of households, though not significant. To the workers, the rise indicates continuous wage increment whereas recipients of the benefits will experience an increment in their allowances to offset the cost-of-living pressures. Pensioners who are challenged by the different problems associated with inflation and fixed incomes are the greatest beneficiaries.

This is an essential projection to the income growth Netherlands. Most expatriates move to seek employment opportunities, but also have to pay high prices of living in the Dutch cities. Even discretion in terms of purchasing power can serve to compensate for the rise in housing, utility and grocery costs.

Income Tax and VAT Updates

Taxes still dominate the budget. The good news is that one of the proposed increases in VAT in the Netherlands for 2025- 2026on cultural goods and services was scrapped. Books, concerts and museums will also be subjected to the lower VAT rate of 9 per cent, which will allow the Dutch cultural sector to flourish as it will still be affordable to the population. This is a relief to the families and the expatriates who know about culture.

On the revenue side, the image is more complicated. The government declared some changes to Dutch income tax 2026:

• First bracket: EUR38,441 – EUR38,883
• Second bracket: EUR76,817 – EUR79,137

These thresholds are on the increase, although the government is not fully implementing inflation correction. This implies that a large number of taxpayers will be subjected to the fiscal drag, in which their income grows, but the tax bracket does not keep pace with the inflation rate, causing the effective tax to rise accordingly. To middle-income earners and expats, this can offset the optimistic side of the salary increase.

Travel and Flight Tax Adjustments

In the case of internationally mobile individuals, the Netherlands’ flight tax 2026 is one of the most noticeable changes. The government is imposing a distance-based tax on long-haul travel tax Netherlands. The total departure tax charged to passengers flying to the United States, Mexico, South Africa and Asia would increase to EUR70.86, depending on the destination.

This is especially applicable to the expats as most of them travel often, either on work or family grounds. As an illustration, a Dutch-American family visiting family in the U.S. may face hundreds of euros of extra money spent every year. Although the government is making this decision sound like a move towards sustainability and lowering the level of emissions of the aviation sector, international travellers are left with the heavy financial impact.

Healthcare in 2026

Healthcare is already one of the foundations of the Dutch welfare state, and in 2026, it is proposed to make the following changes:

• Healthcare premiums: Dutch healthcare premiums 2026 will increase by approximately EUR 3 per month.
• Eigen risico (compulsory deductible): is kept at EUR385/year.

This combination brings predictability to residents and also to the expats. Although there is a rise in premiums, the eigen risico Netherlands is stable to make sure that the household will not experience any unexpected increases in the out-of-pocket expenditure. The changes are a continuum to the expats who have to maneuver through the health insurance in the Netherlands, which is obligatory as long as one resides in the country.

Education Investments

The government has reemphasized the issue of equal opportunity in education. The intended reductions to the Educational Opportunities Scheme are no longer, and thus, they still support disadvantaged families. The program is crucial to assist children from lower-income backgrounds in receiving quality education and other resources.

To the expat families, this is an indication of a greater support system in the Dutch schools. The Dutch education budget 2026 has been issued, so that Schools may offer more resources, tutoring and integration services with more spending. This will generate a situation in which children with an international background will be allowed to flourish with their Dutch counterparts, and social cohesion in the long term will be solidified.

Technology and Innovation Funding

One of the best aspects of Prinsjesdag 2025 is the risky investment of the government in the tech sector. The Netherlands tech industry budget is all set to become a European leader in technology, with 430 million to be allocated to innovation in 2026. The investments will focus on artificial intelligence, green technology, and other high-tech manufacturing.

This is a significant opportunity to the expat tech professionals. The Dutch innovation funding 2026 has been traditionally based on foreign talent to support innovation, and the new funds will win employment, research, and startups. Starting with high-tech campus at Eindhoven and fintech ecosystem at Amsterdam, expat tech jobs Netherlands will have more and more opportunities in the innovative industries. 

Budget Debate and Next Steps

Whilst the King sets the agenda, it is in the Dutch budget debate 2025 that the details are analysed. The Prime Minister Schoof is going to defend the budget in parliament on September 18 and 19. However, as the elections in the Netherlands in October 2025 will take place on October 29, 2025, the destiny of the budget will likely be determined mainly by following the political realignments.

In the case of the expats, this implies that specific measures that are being articulated today might be changed or remodelled by a new government after being in office. Following political events in the Netherlands will be important in staying up to date with the changes that will occur in the future in terms of taxation, housing and immigration policy.

Work and Grow with ThisWorks

To the expats, the Dutch budget is not just a piece of paper, but a map of how to go through life and develop as a professional. At ThisWorks, we are aware of the difficulties in adjusting to a new country, including the tax issue and healthcare. This is why we are keen on the development of a multilingual and diverse workplace that would allow international professionals to succeed.

You are planning to expand to the Netherlands? Contact our experts today and get into a community of supportive people where your talent on a global scale can collaborate, innovate, and develop together.

FAQs about Prinsjesdag 2025 and the Dutch Budget

Q1. What is Prinsjesdag in the Netherlands?

Prinsjesdag (Budget Day) takes place every third Tuesday of September, when the King presents the government’s budget and opens the new parliamentary year.

Q2. Does the 2025 budget include major changes for expats?

No direct changes target expats, but adjustments in tax brackets, healthcare premiums, and flight taxes will indirectly affect them.

Q3. What happens to the 30% ruling for expats?

The 30% ruling remains unchanged in 2025 and 2026. From 2027, however, the benefit will be reduced to 27%.

Q4. How will income tax change in 2026?

Tax brackets are being raised slightly, but without full inflation correction, meaning some taxpayers may face higher effective rates.

Q5. What are the biggest benefits of the 2026 budget?

Expanded housing allowance, reversal of education cuts, significant funding for technology and innovation, and scrapping of the VAT hike on cultural services.

Q6. How will healthcare costs change?

Premiums will rise by about €3 per month, while the eigen risico remains unchanged at €385 per year.

Q7. Will travel from the Netherlands become more expensive?

Yes. Long-haul travellers will face new distance-based flight taxes, potentially adding up to €70.86 per ticket.

Q8. What’s next for the Dutch budget after Prinsjesdag?

The budget will be debated in parliament on September 18–19. The October elections could lead to revisions or new priorities.

Q9. How does Prinsjesdag affect expat salaries in the Netherlands?

With modest increases in purchasing power and fiscal drag from unindexed tax brackets, expat salaries may stretch slightly further in 2026, but not dramatically.

Q10. Why should internationals care about Prinsjesdag?

Because it directly affects the cost of living, from healthcare and housing to travel expenses and job market opportunities.

Conclusion

Prinsjesdag 2025 summary can be characterised as transitional, wary, and aimed at being stable when the country experiences political uncertainty. Its actions are not radical, yet far-reaching in real life. Key takeaways include:

• Minor growth in the buying power of all groups.
• An added long-haul flight charge increases the expenses of travelling for the expats.
• Changes in moderate premiums of healthcare, yet a constant deductible
• Increased housing allowance and subsidies to younger tenants.
• More funding for education for low-income families.
• Heavy investment in innovation and technology.

The Dutch budget 2026 is concerned with continuity pending the result of the elections. The Netherlands’ economic outlook has proved to be resilient despite a failed cabinet and dwindling coalitions as it invests in people, its publicly funded services, and the economy.

To expats, the message is simple: the Netherlands is still a land of opportunity with a balance between stability and prospective investments. As a student, as a business person or a family and you are constructing a future here Prinsjesdag 2025 outlines the challenges, opportunities and optimism that characterise the Dutch way forward.

Article Author – Gino Peters

Gino Peters is the Commercial Director at ThisWorks, with a rich history of nearly a decade in international payroll. Throughout his tenure, he has consistently kept abreast of evolving labor legislation, ensuring that ThisWorks remains at the forefront of industry knowledge. Beyond his vast expertise, Gino is deeply committed to advising and guiding clients and partners with precise insights. His leadership guarantees that all content and operations at ThisWorks meet the highest standards of clarity, accuracy, and compliance.
Follow him on Linkedin

Book a free consultation with Gino Peters