Your assets can affect your entitlement to benefits. If you have too much savings or investments, you may not receive any or reduced benefits.
What counts as assets?
For benefits, your assets are assessed on 1 January of the benefit year. This includes:
- Savings in bank accounts
- Shares and investments
- Cryptocurrency
- Cash above normal amounts
- Value of a second home
- Claims on others
What does NOT count as assets?
- Your own home (in which you live)
- Pension provisions
- Annuity policies
- Student loans (are not deducted)
- Car (up to a certain value)
Asset thresholds per benefit (2024)
| Benefit | Single | With partner |
|---|
| Care benefit | € 127.582 | € 161.329 |
| Rent benefit | € 33.748 | € 67.496 |
| Childcare benefit | € 127.582 | € 161.329 |
| Child-related budget | € 127.582 | € 161.329 |
Pay attention to the reference date
Assets are measured on 1 January of the benefit year. If you exceed the threshold on 1 January 2024, you have no entitlement to that benefit for the whole of 2024, even if your assets decrease later.
Frequently asked questions
Does the overvalue of my house count?
No, the value of your own home (in which you live) does not count as assets for benefits.
What if I am just above the threshold?
Then you have no entitlement to that benefit for the entire year. It may be worthwhile to make large expenditures before 1 January.
Does an inheritance count?
Yes, an inheritance counts as assets from the moment you receive it. This can affect benefits in the following year.
## Frequently asked questions
**How is my assets precisely calculated for benefits?**
Your assets are calculated based on the value of your possessions minus debts on 1 January of the benefit year. Only the specified asset components count, such as savings, investments and a second home. Debts such as student loans or mortgage on your own home are not deducted. It is important to keep a close eye on your assets on this reference date to avoid surprises.
**I have a car of high value. Does this count towards my assets?**
A car usually does not count as assets for benefits, provided it has a normal value. In the case of extremely expensive cars, the Tax Authorities may decide that part of the value does count. Always check the current rules or consult the Tax Authorities if you are in doubt about the value of your car.
**What can I do if my assets are just above the threshold?**
If your assets are just above the threshold, you can consider making large expenditures before 1 January, such as paying off debts, investing in your own home or making donations. This way you reduce your assets and may still receive benefits. Be aware of tax consequences and plan this carefully.
**I received an inheritance in 2023. Does this affect my benefits in 2024?**
Yes, an inheritance counts as assets from the moment you receive it. If you received the inheritance in 2023, it will be included in the assets on 1 January 2024. This can cause you to exceed the asset threshold and thus have no entitlement to benefits in 2024.
**Can I spread my assets over different accounts to stay below the threshold?**
No, it does not help to spread your assets over different accounts or put them in the name of others. The Tax Authorities look at the total assets in your name. It is important to declare your assets honestly and completely to avoid problems with benefits.
**What happens if I accidentally fail to declare my assets?**
If you fail to declare your assets or declare them incorrectly, you run the risk of recovery of benefits and possibly a fine. The Tax Authorities check regularly and can request information from banks and other institutions. Always be transparent to avoid financial problems.
**How often are the asset thresholds for benefits adjusted?**
The asset thresholds for benefits are adjusted annually, usually per 1 January. These adjustments are based on inflation and other economic factors. It is advisable to check the current thresholds each year on the Tax Authorities' website to be sure whether you still have entitlement to benefits.
### TL;DR
Your assets on 1 January determine whether you are entitled to benefits such as care benefit or rent benefit. Above certain thresholds, your entitlement lapses completely. Your own home, pension and car usually do not count, but savings, investments and a second home do. Plan large expenditures before 1 January if you are just above the threshold.
### Key Takeaways
- Your assets are tested on 1 January of the benefit year and determine your entitlement to benefits for the entire year.
- Savings, investments and a second home count as assets; your own home and pension provisions do not.
- Above the asset threshold, your entitlement to benefits lapses completely, even if your assets decrease later.
- An inheritance or large expenditures can affect your assets and thus your entitlement to benefits.
- Check the current asset thresholds annually, as they may change each year.