The housing market in the Netherlands is in turmoil, and some locals are pointing fingers toward expats and their 30% tax break. But are they really to blame?
The Eindhoven Dagblad invited readers to share their views on how the 30% ruling affects housing. Their thoughts? Most respondents want the ruling abolished, saying it pushes the housing market further out of reach for first-time buyers.
Renting a one-bedroom apartment in the centre of Eindhoven costs no less than €1,200, and the price per square metre for buying a house now exceeds €4,700.
It’s no wonder the people want someone to blame — but is it rightly placed? Let’s get into it.
What is the 30% ruling?
Firstly, let’s explain what is at the centre of this argument. The 30% ruling was meant to attract highly educated foreign workers to the Netherlands by allowing them to receive part of their salary tax-free.
Although it depends on their salary, expats earn an average of around €1,000 more per month when compared to their Dutch colleagues in similar roles.
From January 1, 2027, the tax-free portion of expats’ salaries will be reduced from 30% to 27%. After five years, expats will pay the same tax rates as everyone else.
However, with roughly 20,000 applications for knowledge migrants submitted to the Immigration and Naturalisation Service in 2025, the tax break remains a hot topic among Dutch people.
“Why are expats favoured over locals?”
This is a question on the lips of these ED readers.
One reader, Peter de Groot, writes that differentiating between domestic and foreign employees in their benefits is “unconstitutional.”
Meanwhile, another reader, Dick de Groot, wishes to abolish tax benefits for expats altogether.
Elis Poelman thinks it’s “ridiculous” that expats are favoured over residents born and raised in Eindhoven.
READ MORE | The 30% ruling in the Netherlands: The easy guide in 2026
Meanwhile, Alex Goudriaan thinks Indians would keep coming to Eindhoven regardless of the tax break…
Some readers suggest a practical fix instead: let companies house their own workers.
Amita Banerjee proposes staff housing to ease pressure on the local market, while Marijn de Jong sums it up simply: build a few large residential towers next to ASML.
Another commenter on Eindhoven Dagblad’s article turns the tables: “There’s only one real cause of high house prices: scarcity. And because higher prices mean higher profits and taxes, that scarcity is deliberately sustained.”
Does an extra €1,000 per month really help you buy a house?
Unfortunately for the readers of the Eindhoven Dagblad: No.
According to Dennis van Lieshout, a mortgage advisor, it’s a myth that the 30% ruling makes it easier for expats to buy a house.
“About two-thirds of all mortgages fall under the National Mortgage Guarantee, and in those cases, we shouldn’t even include the scheme in our calculations,” van Lieshout tells ED.
When it comes to renting, however, an extra €1,000 indeed helps you pay more rent, making you better able to take on the increasing rent prices.
From the mortgage advisor’s perspective, if the tax break is discontinued completely, expats might be less likely to choose the Netherlands, which risks the country’s “competitive position.”
The Netherlands plays a major role in semiconductors, robotics, software development, and the energy transition. These sectors contribute a lot to the country’s GDP, which then helps fund benefits that make life in the Netherlands easier for Dutch citizens.
Next time mortgages feel impossible, and the thought of your grandfather buying a house at age 11 keeps you up at night, perhaps blame the economy — not the expat.
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