Expats unhappy with government concession

Highly educated employees from abroad, among whom are many scientists, receive thirty percent of their income tax-free for eight years. But the duration of the so-called 30 percent ruling will be reduced from eight to only five years this January – without any transitional arrangement for people who already benefit from the ruling now.

Expats were enraged. They counted on the tax benefits when they came here, and threatened to sue. Universities and universities of applied sciences, too, were less than happy, and fear talented expats will no longer wish to move to the Netherlands.

‘A deal is a deal for everyone’
Yesterday, it was announced a transitional arrangement will be introduced after all, but only for those expats whose 30 percent ruling would end next year or in 2020. To fund this, the government is using money that was made available by the decision to not abolish the divident tax. It’s still unclear what the transitional arrangement will look like.

Expats call it a step in the right direction, but are still far from happy, says Jessica Piotrowski of the foundation United Expats of the Netherlands. “There are so many people who can’t use this transitional arrangement. That’s not fair: a deal is a deal for everyone.” The foundation is currently considering its next steps. “But no matter what, we’re continuing our fight.”