By cleverly shifting your money, you can save money at the last minute. Pay off debts, donate, invest extra, bundle gifts, prepay the health insurance premium and mortgage interest. There are smart ways to save some money just before the turn of the year.

Entrepreneur? Make some extra investments

Investments in operating assets are an interesting deductible item. The best-known deduction is the small-scale investment allowance (KIA), intended as for entrepreneurs who have invested between 2,301 and 312,176 euros in your own company this year. If you are still below the threshold of 2,301 euros, see if you can bring forward some investments. 

Please note: only assets that cost more than 450 euros are eligible for this. For better wealth management you can make use of

And save VAT

Are you an entrepreneur and partially exempt from sales tax or did you start your own company in the course of this year? Then keep an eye on how much VAT you have to pay. Anyone who levies less than 1,345 in VAT on an annual basis (after deduction of so-called input tax) may keep this amount. If you are above, but still under 1,883 euros, you can put part of it in your own pocket.

If you are up against these limits, see if you can make some extra expenses for your company and still make use of this scheme. Maybe you can highlight certain investments; especially if you expect to charge more VAT next year. Of course, only make investments that make sense.

Express your assets

Anyone who has a capital greater than EUR 30,000 on 1 January must pay tax on this capital in box 3. Fortunately, the rates for wealth tax will decrease slightly in the coming year, but nevertheless it is of course smart to try to put your capital in Box 3. If you receive allowances, there is an extra reason to take a closer look at your assets, because with the exception of the childcare allowance, they also have a wealth test in addition to an income test. If it turns out that your assets are even one euro above the limit, you will lose your right to a supplement.

One of the ways to reduce your capital is to make extra repayments on your mortgage. Make sure that you stay under the amount that you can repay without penalty and preferably repay on an interest-only mortgage. Of course you also have to keep enough reserves for setbacks. If you want to make extra repayments, be quick, with some mortgage lenders you have to announce before December that you want to make extra repayments.

Another option to let your piggy bank shrink is to set up a savings company. You can also withdraw some extra cash before New Year’s Eve. An exemption of 522 euros per person applies for this in box 3.

By Linda

Linda Green: Linda, a tech educator, offers resources for learning coding, app development, and other tech skills.