New Dutch Cabinet to Increase Healthcare Deductible and Maintain Mortgage Interest Deduction
The D66, VVD, and CDA coalition has agreed to increase the healthcare deductible from €385 to €460 in 2025 while maintaining the mortgage interest deduction. The agreement includes a commitment of €20 billion to address the nitrogen crisis impacting construction.
Additionally, the Cabinet plans to allocate €100 million annually to improve the prison system. The parties will introduce a 'freedom contribution' tax to partially fund increased defense spending, aiming for 3.5% of GDP, which entails an additional €16 to €19 billion in defense budget. The Cabinet will operate as a minority government with 66 of 150 seats in the Tweede Kamer, requiring support from opposition MPs for policy adoption.
