The Netherlands is approaching the Voorjaarsnota — the day the government checks in with the national budget and introduces upcoming plans. Once again, the 30% ruling for expats is on the chopping block.
As the NOS writes, Pieter Omtzigt of the NSC party wants the Spring Memorandum to relax the scheme that offers tax benefits to highly-educated expat workers.
💡 In case you didn’t know: The 30% ruling in the Netherlands is a scheme granting certain highly-skilled migrants a tax cut on up to 30% (or 27%) of their earnings during their first five years of work in the Netherlands.
Making the economy fair again
“We are nearing 200,000 people from abroad who receive 27% of their income tax-free. If we want to make the economy more fair, we should not have groups of people who pay less tax”, Omtzigt said in an interview with De Telegraaf.
READ MORE | The 30% ruling in the Netherlands: The easy guide in 2025
The 30% ruling is a major driving force in attracting international talent to the Netherlands, so many are surprised that the government would consider cutting it.
But according to Pieter Omtzigt, the millions of euros that are currently being poured into the tax relief could be used otherwise.
How exactly? Omtzigt’s examples include reducing the energy tax on gas by “a few cents per cubic cube” and improving the Dutch disability system.
The ongoing debate persists
Omtzigt first presented his plan to get rid of the 30% ruling in 2023.
Back then, it was decided that the tax credit should be slowly phased out, gradually reducing the amount of expats’ tax-free income over a period of 5 years.
READ MORE | What is the average salary in the Netherlands? What you need to know in 2025
Since then (following a lot of criticism), the government changed its mind and decided that, instead, the 30% ruling would be reduced to 27% as of January 1, 2027.
Negotiations on the Voorjaarsnota will begin soon, and all the major financial issues that the four government parties disagree on will be discussed.
It’s unclear what will happen to the expat tax scheme, but Omtzigt stresses that he is open to negotiations: “In the end, I will make a compromise where I don’t get what I want one hundred percent.”
Do you think the 30% ruling should be cut? Leave your opinion on the comments.
