For South African expats planning to move to the Netherlands, understanding the cost of living is crucial. The amount you need will depend on various factors, including your job, lifestyle, and family size. My husband, a Chartered Accountant in the private sector, and I, a journalist, found the transition challenging when we initially relied on a single income. Here’s a breakdown of our experience and some essential tips for budgeting in the Netherlands.
Cost of Living Differences
The cost of living in the Netherlands can be significantly higher than in South Africa. Basic necessities such as electricity, medical aid, and groceries tend to be more expensive. Dining out, for example, can be quite costly, with a glass of wine starting at €5 and a beer at a minimum of €7. Adjusting to these prices took a toll on our lifestyle, which was more comfortable back home, allowing us to eat out and travel frequently.
Housing and Location
One of the first considerations is where you plan to live. The cost of living can vary greatly depending on the location. For instance, a budget of €5000 in Amsterdam will not stretch as far as it would in Limburg. The Randstad area is particularly expensive, exacerbated by a housing shortage that drives prices up.
Key Budgeting Tips
- Job Offers and Salary Requirements: Ensure any job offer meets the minimum salary requirements of the Netherlands. It’s crucial to verify this against the legal standards.
- Municipal Taxes: Be aware of local taxes, such as water and garbage removal, which can cost around €600 annually. Taxes are pervasive, and you may even be taxed for having a nice view in some areas.
- Health Insurance: Health insurance is mandatory for everyone living or working in the Netherlands. This includes a monthly premium and an “own risk” amount, up to €385 in 2024, which you must pay out-of-pocket before insurance covers additional costs.
- Energy Costs: With rising energy costs, pay close attention to the energy label of your potential home. Aim for an A, B, or C rating if possible. Solar panels can also help mitigate high energy expenses, which can reach €600 during winter months.
- Public Transport: The OV chip card is essential for using public transport. A personalised OV chip card, which bills you on account and offers discounts for off-peak travel, is recommended.
Leisure and Entertainment
Going to the movies costs about €13.50 per adult and €7.50 per child. For frequent cinema-goers, the Pathe gold card at €29.50 per person per month allows unlimited access. Other activities, like visiting Sealife or amusement parks, typically cost around €25 per person. Dining out, such as pizza, ranges from €10 to €15, and a cup of tea costs between €2.50 and €8.
Grocery Shopping
Grocery shopping varies significantly between different supermarkets. Here’s a quick guide:
- Albert Heijn (AH): The most popular but also one of the pricier options. An AH bonus card is essential for discounts.
- Jumbo: Slightly more affordable than AH, with the 7 Zekerheden (7 Certainties) ensuring a smooth shopping experience.
- Aldi and Lidl: Both German discount chains offering affordable prices. Lidl Plus discount card offers additional savings.
- Coop: Affordable, mainly in the western Netherlands. The Coop Klantenkaart provides further discounts.
- Plus and Dirk: Both offer a range of quality products at reasonable prices, making them wallet-friendly choices.
Final Thoughts
Moving to the Netherlands requires careful financial planning and adjustment to a higher cost of living. By understanding the expenses and making use of available discounts and smart budgeting tips, you can better manage your finances and enjoy your new life in this beautiful country.
The South African Expat 