Dutch universities and companies furious over slashed 30 per cent rule

The Dutch government’s cut of three years from the eight-year 30 per cent tax-free rule for expats is now being trashed by universities and academic institutes as well as major companies.

The 30 per cent rule has attracted a large number of expat experts to the Netherlands, with many deciding against jobs offered in other European states because of the financial benefit. As the row over the new rule’s introduction drags on, academic institutions, tech and finance companies as well as other sector leaders are joining in the mounting protests, saying they will lose crucial members of their staff as a result.

The loss of the perk is expected to force valuable expat professionals to sell their mortgaged homes, and a number are already preparing to leave. One Greek expat chose a software engineering job in the Netherlands over several offers from UK companies, and purchased a $465,000 house expecting the tax break would pay for his mortgage over the eight years of its run. Now he’s fearing he might have to sell, and angry that he believed his chosen country was both stable and fair in its dealings with expat professionals. He believes the Netherlands has lost its excellent reputation as an expat destination, and he may well move elsewhere as a result. At the same time, two major tech companies are urging the government to allow transitional regulations.

Mike Weeks, co-founder of the campaign group United Expats of the Netherlands, is surprised the Dutch government seems to think all expats will simply give up and stay, however badly the new rule affects their financial status. In an interview, he reiterated that those affected can’t stay under these circumstances and will be forced to leave. Affected expat Thomas Leopold, an associate professor at the University of Amsterdam, is busy challenging the data on which the government’s decision is broadly based. Other infuriated expats are already changing their life plans, with some contemplating cutting back on childcare, taking their kids out of international schools, defaulting on loans or leaving the Netherlands for good. It seems the message is still loud and strong - a deal is a deal is a deal.