Why is this important?<\/h2>
Skilled workers are needed to support Dutch innovative efforts. Especially in deeptech, many of those workers come from abroad, which is caused by a lack of Dutch tech specialists. With a 30% tax facility, the Netherlands is a more attractive country for these foreign talents. A new study finds that banning the rule would be risky, especially for high-tech regions like Amsterdam and Eindhoven.<\/p><\/div>\n\n\n\n
A comprehensive evaluation<\/a> by SEO Economisch Onderzoek, commissioned by the Dutch Ministry of Finance, underscores the significant role of the 30% tax facility in attracting highly skilled migrants to the Netherlands. This scheme, which offers a tax break to expatriates, is deemed crucial for the country\u2019s business climate and economic growth.<\/p>\n\n\n\n The study, which spans 2016 to 2022, indicates that the 30% facility effectively lures top talent, enhancing the Netherlands’ appeal to international companies. The report warns that planned changes to reduce the tax relief from 30% to a stepped 30-20-10% by 2024 could lead to a 10-15% decrease in highly skilled migrants, with a potential 40% drop if the rule is completely abolished.<\/p>\n\n\n The report emphasizes the importance of a stable and predictable tax facility to avoid detrimental effects on investment decisions and administrative costs. \u201cWe find no evidence for a reduction in extraterritorial costs with the length of stay,\u201d the report states, suggesting that a consistent percentage would better align with actual cost developments and reduce administrative burdens for employers and the tax administration.<\/p>\n\n\n\n \u25cf 30%-facility<\/strong>: An employer may reimburse 30 percent of the salary to the employee for 5 years tax-free. A salary requirement focuses the scheme on highly skilled migrants with specific expertise that is not or scarcely available in the Netherlands.\u00a0\u00a0 The 30%-facility, which currently allows employers to reimburse 30% of an expatriate’s salary tax-free for five years, is praised for its positive impact on the business climate. Interviewees from various sectors highlighted that the scheme helps attract talent essential for knowledge-intensive industries, particularly in regions like Amsterdam and Brainport Eindhoven.<\/p>\n\n\n\n In light of these findings, the report urges policymakers to reconsider the proposed changes. It advocates for maintaining a stable percentage to continue attracting top talent and supporting the Dutch economy. The evaluation also suggests tightening the expertise requirement and exploring a training requirement for labor migrants from outside the EU to align better with the needs of the economy.<\/p>\n\n\n\n As Parliament debates the future of the 30%-facility, this report provides a critical data-driven perspective, highlighting the need for policies that balance fiscal responsibility with the necessity of attracting and retaining global talent.<\/p>\n\n\n The 30% tax facility for expats living in the Netherlands effectively attracts highly skilled migrants and enhances the business climate. As Parliament considers abolishing the rule, a new report suggests maintaining a stable percentage to avoid negative economic impacts and increased administrative burdens. A comprehensive evaluation by SEO Economisch Onderzoek, commissioned by the Dutch Ministry […]<\/p>\n","protected":false},"author":1568,"featured_media":493559,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[84165],"tags":[24006,3520,28445],"location":[6763],"article_type":[60595],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[81075],"class_list":["post-480180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-community","tag-30-rule","tag-expats-en","tag-tax","location-netherlands","article_type-analysis","reboot-archive-community"],"blocksy_meta":[],"acf":{"subtitle":"Planned changes to reduce the expat tax relief could lead to a 10-40% decrease in highly skilled migrants. Amsterdam and Brainport Eindhoven would be highly affected by the abolishment of the rule.","text_display_homepage":false},"author_meta":{"display_name":"Bart Brouwers","author_link":"https:\/\/ioplus.nl\/archive\/author\/brewbart\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2023\/10\/brewbart_Expats_from_India_and_Pakistan_working_in_a_dutch_high_318c04ce-47a7-4046-a786-b71cfb466ac8.png","coauthors":[],"tax_additional":{"categories":{"linked":["COMMUNITY<\/a>"],"unlinked":["COMMUNITY<\/span>"]},"tags":{"linked":["30% rule<\/a>","expats<\/a>","tax<\/a>"],"unlinked":["30% rule<\/span>","expats<\/span>","tax<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 2 years ago","modified":"Updated 2 years ago"},"absolute_dates":{"created":"Posted on June 16, 2024","modified":"Updated on June 16, 2024"},"absolute_dates_time":{"created":"Posted on June 16, 2024 11:13 am","modified":"Updated on June 16, 2024 11:13 am"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/480180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/1568"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=480180"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/480180\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/493559"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=480180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=480180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=480180"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=480180"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=480180"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=480180"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=480180"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=480180"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=480180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}A stable and predictable tax facility<\/h2>\n\n\n\n
The operations of the expat tax schemes:<\/h2>
\u25cf Partial foreign tax liability<\/strong>: This is an optional scheme for 30% of users to be taxed in the country of origin for box 2 and box 3 assets.\u00a0\u00a0
\u25cf Extraterritorial costs scheme<\/strong> (ETK scheme): An employer may reimburse actual extraterritorial expenses tax-free for all employees. Extraterritorial costs are additional costs of temporary stay outside the country of origin in the context of employment\u00a0<\/p><\/div>\n\n\n\nReconsider the changes<\/h2>\n\n\n\n
![](\"https:\/\/innovationorigins.com\/app\/uploads\/2023\/10\/brewbart_Expats_from_India_and_Pakistan_working_in_a_dutch_high_74eefed8-c76d-4a9e-a49d-48c7f1a25d9b.png\")
<\/div><\/div>