Stricter borders but better deals for expat talent: D66 and CDA unveil cabinet plans

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Two centre parties, D66 and CDA, have finally revealed their “positive agenda” for forming a new Dutch government, and it’s a mixed bag for internationals: tougher asylum policies paired with sweeteners for highly skilled workers.

After weeks of closed-door negotiations, D66 leader Rob Jetten and CDA leader Henri Bontenbal have dropped their much-anticipated formation document. Presented today by informateur (government formation mediator) Sybrand Buma, it tackles five major policy areas: migration, housing, nitrogen, defence, and the economy.

The result? A delicate balancing act that might please no one but could be the only path to a functioning government. But remember: this is just a proposal, not a done deal.

Asylum outside Europe’s borders

The document takes a notably hard line on asylum policy. D66 and CDA propose “modernising” the refugee treaty to allow asylum applications to be processed entirely outside Europe, reports RTL.

They also want to maintain the contentious spreidingswet (distribution law), which forces municipalities to accept asylum seekers, and create 41,000 permanent asylum reception places plus 29,000 flexible spots.

READ MORE | The asylum crisis in the Netherlands: here’s the rundown

This represents a significant shift for D66, traditionally one of the more progressive parties on immigration. It’s a clear attempt to find middle ground after recent political turmoil brought down the previous government over asylum disputes.

For internationals watching Dutch politics unfold, it’s worth noting: these proposals target asylum seekers and refugees, not skilled migrants or students. The parties are drawing a sharp line between the two.

Universities and the 30% ruling: a lifeline for international talent

Here’s where things get interesting for internationals and international students. D66 and CDA want to enable research institutions “to attract and retain top researchers and top talent from abroad.” Universities would be given renewed freedom to recruit world-class scientific talent, whilst honouring existing agreements on international student numbers.

The centrepiece? Restoring the expatregeling, better known as the 30% ruling. This tax benefit, which allows certain skilled international workers to receive 30% of their salary tax-free, has been repeatedly watered down in recent years.

Note: The parliamentary document simply talks about “restoring” the expat ruling. What exactly this means or will entail is unclear as of now. In any case, it signals that the new cabinet wants international-friendly plans.

The parties also propose improving the kenniswerkersregeling (highly skilled migrant scheme) and connecting with the EU talent pool. It’s a comprehensive package aimed at making the Netherlands more attractive for researchers, scientists, and other highly skilled workers.

The message is clear: whilst borders tighten for asylum seekers, the welcome mat stays out for those with sought-after skills and qualifications.

Mortgage perks and road pricing on the table

The document doesn’t stop at immigration. D66 and CDA also propose gradually phasing out the hypotheekrenteaftrek, or mortgage interest deduction, which allows homeowners to deduct mortgage interest from their taxable income.

Both parties promise to offset this with lower income taxes, but it’s still likely to ruffle feathers amongst Dutch homeowners who’ve built their financial planning around this sacred tax break.

They also want to introduce some form of rekeningrijden, or road pricing, though the exact details remain vague.

The political puzzle ahead

Here’s where it gets tricky. D66 and CDA together hold nowhere near the 76 seats needed for a majority in the Tweede Kamer (House of Representatives). They need other parties to join them, and this document might make that difficult.

GroenLinks-PvdA, the left-wing alliance, is unlikely to embrace the hard-line asylum proposals, while the VVD won’t be thrilled about scrapping the mortgage tax break or introducing road pricing.

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READ MORE | Dutch Quirk #123: Have an extreme number of political parties

In other words, D66 and CDA have crafted a document that could alienate potential coalition partners on both the left and right. Whether this “positive agenda” can actually produce a functioning government coalition remains an open question.

Nothing is set in stone

It’s crucial to remember: this is a starting point for negotiations, not a finished government programme. Other parties will weigh in, proposals will be watered down or scrapped entirely, and compromises will be made.

The actual coalition agreement, if one emerges at all, could look quite different from what D66 and CDA have presented today.

This document will now be taken to other party leaders to gauge interest. A final report is due next Tuesday, 9 December. Given the Netherlands’ track record with coalition negotiations, we could be in for a long wait before there’s actually a functioning government.

What do you think of the proposals? Would restoring the 30% ruling make up for stricter immigration policies overall? Share your thoughts in the comments below!

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Abuzer van Leeuwen 🇳🇱
Abuzer van Leeuwen 🇳🇱
Abuzer founded DutchReview a decade ago because he thought expats needed it and wanted to make amends for the Dutch cuisine. He has a Masters in Political Science and IT but somewhere always wanted to study history or good old football. He also a mortgage in the Netherlands and will happily tell you too how to get one. Born and raised in Rotterdam, Abuzer now lives in Leiden but is always longing back to his own international year in Italy.

3 COMMENTS

  1. The 30% tax break for expats amounts to discrimination of the Dutch citizens, and prizes Dutch citizens out of the housing market. The VVD used to be a ‘Volkspartij’ (people’s party) but has shifted towards being an unscrupulous defender of big corporations at the expense of the interests of Dutch tax payers.

  2. Honestly they shouldn’t allow DAFT’ers (like me) to qualify for the 30% Ruling. The idea that we’re “recruited from abroad” by a company that we create and own is nonsense. It’s all by the book legal of course and I’m not critical of anyone (myself included!) for using it. But it’s for the best that it’s currently on a path to phase out. If the government wants to restore it to help companies like ASML that actually rely on foreign recruitment, then limit it accordingly. Otherwise, it’s just unfair to native Dutch workers.

  3. People coming from other country might need a little push to start having normal life in the Netherlands. Keeping 30% ruling for 2 or 3 years will be a nice balance.

    What I find absurd is the proposal to change stay period from 5 years to 10 years for the citizenship eligibility. 5 years is already good. 10 years is such a long time that no one will be sure what will happen or change in that time, so having a solid plan is very difficult. I know above article doesn’t mention about this, but I’m curious of how this proposal might turn out.

    Over all, I love Netherlands. 🌷

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