Dutch supermarkets are relatively expensive, often 10% higher than in neighboring countries, primarily due to territorial supply restrictions, higher taxes, and increased energy/production costs. Manufacturers frequently enforce geographical buying constraints, preventing retailers from purchasing cheaper stock from abroad. Additionally, higher VAT rates (21%), strict labelling requirements in Dutch, and high wage costs contribute to the higher prices.
Groceries are the second-largest expense after housing costs. In 2026, households in the Netherlands will spend an average of €478 per month on food and non-alcoholic drinks.
The Netherlands has had steady natural gas resources since 1959, when a wellspring was discovered. Currently the Netherlands accounts for more than 25% of all natural gas reserves in the European Union. Over the following decades, the sale of natural gas generated a significant rise in revenue for the Netherlands.
What's the cheapest supermarket in the Netherlands?
Dirk. Ranked as one of the cheapest Dutch supermarkets by the Dutch Consumers' Association (Consumentenbond) in 2023, Dirk is a spot where you'll find some of the best discounts for groceries.
When you factor in housing costs, that overall difference increases slightly, with the Netherlands being around 5.7% more expensive. Cities like Amsterdam and Utrecht can be even more expensive for housing, with rental prices often exceeding those in major UK towns.
The Netherlands' 30% ruling is a tax advantage for highly skilled international employees, allowing employers to pay up to 30% of their gross salary tax-free for up to five years to cover "extraterritorial costs" (moving expenses/extra living costs). Key conditions include recruitment from abroad, specific expertise needed in the Netherlands, and meeting a minimum taxable salary threshold (e.g., €46,660 for most in 2025). The ruling is being phased out, with a scaling-back (30-20-10) applied in recent years and a new flat 27% rate planned from 2027, though 30% still applies for 2025-2026.
The average income in the Netherlands is around €36,500 gross per year. This means that a salary of €70,000 is almost double the average income. It is therefore understandable that this is considered a high income.
Which European country has the cheapest groceries?
Southeastern Europe and the Western Balkans show the lowest food prices overall. Besides North Macedonia and Romania, Turkey (€75.7), Bosnia and Herzegovina (€82.5), Montenegro (€82.6) and Bulgaria (€87.1) are well below the EU average. Serbia (€95.7) and Albania (€98.7) are also cheaper than the EU.
The National Institute for Family Finance Information (NIBUD) calculated the minimum amounts required in order to participate fully in society for 35 different types of households in 2023. The poverty threshold for a single person was 1,510 euros per month.
Dutch disease refers to the economic problems that arise when a country's currency strengthens sharply, often due to a resource boom, making other export sectors less competitive and weakening long-term growth.
Living in the Netherlands is neither cheap nor very expensive. If you pay 1000 euros in rent, spend 400 euros on food, pay all taxes and utilities, you can live in the Netherlands with an income between 1500-2000 euros.
Lidl is essentially Aldi's slightly more expensive sister. I've found that it has a very similar layout, a comparable price range, and the same no-nonsense approach to shopping. Whilst slightly pricier than Aldi, the upside is that you can find a wider range of products, and the quality is generally better.
The "3-3-3 Rule" for groceries isn't one single definition, but usually refers to planning around three main food types (proteins, carbs, fats/veggies) for balanced meals or a variation like the "3-3-2-2-1 Method," focusing on 3 veggies, 3 proteins, 2 grains, 2 fruits, and 1 dip/spread for simple, balanced shopping, helping to avoid meal planning ruts and create variety with minimal effort.
Rooting through the Eurostat data, the UK is quite an expensive place to live, relative to the EU average, as shown in the chart below. However, this does not seem to apply to food and drink specifically. In the run-up to Brexit, food and drink prices in the UK were below the EU average.
Highly educated foreign nationals working in the Netherlands (expats) may be eligible for an annual tax-free allowance from their employer of up to 30% of their salary. This tax benefit is intended to compensate employees for the additional expenses they incur, such as those relating to travel or furnishing a home.
How many people make over 100k in the Netherlands?
At the other end of the scale, 448 thousand people (5.5 percent) earned at least 100 thousand euros, and 1.6 thousand had an income of more than 1 million euros a year. As these high incomes pull up the average Dutch income from work, CBS also calculates the median income.
A single person in a city like Amsterdam might need a gross annual income of €50,000-€60,000 for a comfortable life, including rent. Outside major hubs, €40,000 could be sufficient. Additionally, the median gross annual salary provides a solid benchmark for a middle-class income.
What is the main source of income in the Netherlands?
In 2022, 35.1% of Dutch GDP was earned from goods and services exports, 1.9 percentage points more than in 2021. This was mainly due to domestic exports (particularly machinery and equipment, and natural gas) and the export of services (notably air and sea transport and travel).
