Amsterdam-area officials call on national government to abolish tax break for expats

Approximately 40 local politicians from the Amsterdam area, including officials from Amsterdam, Haarlem, and Almere, have written to the national parliament calling for the 30 percent ruling to be eliminated.

The call was made through an urgent letter to the Cabinet and parliament. Among the 40 signatories are aldermen and councilors from PvdA, GroenLinks, and SP, as well as representatives of local parties like the Haarlem Independents and Almere Party. They argue that the tax advantage is outdated and no longer addresses pressing problems like the housing shortage and strain on the real estate market.

The 30 percent ruling is a tax incentive aimed at drawing international workers. Employees relocating to the Netherlands who meet specific criteria can receive up to 30 percent of their salary tax-free, typically for a period of up to five years. It provides a financial incentive for highly educated foreign workers to take jobs in the Netherlands.

The local politicians outline several reasons in their letter. They argue that the 30 percent ruling increases inequality, as expats pay far less tax than Dutch employees. The letter states that about 100,000 people in the Netherlands currently use the 30 percent ruling, representing approximately 0.6 percent of the population.

The politicians argue that the 30 percent rule worsens inequality in the housing market. Expats receiving the benefit have more disposable income, allowing them to pay higher rents or secure bigger mortgages. The signatories say this pushes up housing prices in sought-after Randstad neighborhoods, making it harder for local residents with average incomes. At this stage, their appeal is directed at the national government; no decision or legislative proposal has been made yet.

While local politicians call for the complete abolition of the 30 percent ruling, the national government has already begun to scale it back. Starting January 1, 2027, new beneficiaries will receive a fixed tax-free rate of 27 percent for the full five-year period. An earlier plan to gradually reduce the rate (the 30‑20‑10 scheme: 20 months at 30 percent, 20 months at 20 percent, and 20 months at 10 percent) will no longer be applied to new cases, in order to reduce administrative burdens for employers.

For 2026, the minimum income required to qualify is 48,013 euros gross per year, up from 46,660 euros in 2025. Workers under 30 with a master’s degree have a lower threshold of 36,497 euros.

The benefit is also capped under the Balkenende norm (WNT norm) since 2024. In 2026, the 30 percent ruling can be applied to a maximum of 262,000 euros of salary; any earnings above that are fully taxable.