30% ruling

30% rule expats in the Netherlands to be scrapped!

Sander Koops
-8 november 2023
2 min

Koops Housing Agency rents out around 1000 free sector houses per year. A large proportion of these homes are rented to people who come to live in the Netherlands temporarily, the so-called expats. In a number of regions where we provide rental services, the percentage of rentals to expats is as high as 90%.

There are several reasons why Expats choose the Netherlands and in particular the Amsterdam, Amstelveen, Haarlem or Leiden region. One reason is that many different nationalities already live in these places. Amsterdam even has more than 150 different nationalities and Amstelveen, for example, is again known for its Asian community. New expats quickly feel at home in a community that is familiar to them.

Other reasons for expats to choose region "Greater Amsterdam" is a varied range of housing. Something for everyone; from studio flats, canal-side flats to detached houses in the Haarlem or Amstelveen region.

But another prominent reason is the sought-after tax climate the Dutch government offers expats. There is a tax benefit that was created a long time ago to attract foreign talent to the Netherlands.

The expat does not have to pay tax on 30% of the income, this applies for a period of five years. This tax benefit will change from 2024.

The scheme will be limited, using the following graduated scale;

For the first 20 months, no tax has to be paid on 30% of the income, the following 20 months this percentage will be reduced to 20% and the last 20 months no tax has to be paid on 10% of the salary. The scheme will be phased out in three steps here.

Surrounding countries maintain equivalent favourable schemes for expats. The question is therefore whether the adjustment of the 30% rule will reduce the influx of Expats to the Netherlands.