Highly educated employees from outside the Netherlands, among them many scientists, receive 30 percent of their income tax free for eight years. But the term of this 30 percent ruling as it is known will be reduced as of January from eight years to five. And no transition regulation was planned for people who are already using it.

Expats have reacted with outrage. They counted on the tax benefit when they relocated here and have threatened to take legal action. Similarly the universities and universities of applied sciences are anything but happy and fear that in future talented expats will sidestep the Netherlands.

Dividend tax

Yesterday it was announced that at this late stage a transition ruling will be introduced, but only for expats for whom the 30 percent ruling would have ended next year or in 2020. The cabinet will fund this measure with monies made available as a result of maintaining the dividend tax. It is not yet known what shape the transition ruling will take.

Expats are calling it a step in the right direction, but are far from satisfied, says Jessica Piotrowski of the foundation United Expats of the Netherlands. “Very many people are unable to use this transition ruling. That is unfair, a deal is a deal for everyone.” The foundation is considering its next steps. “But come what may we will carry on our fight.”