Expat professionals lose fight against Dutch tax break law change

To the dismay of expat professionals in the Netherlands as well as those thinking of working there, the hated 30-per cent ruling legislation has passed into law. In spite of brave attempts by the campaign group United Expats of the Netherlands,

The extremely popular tax break which attracted huge numbers of highly-skilled professionals to the state is now at an end, with those who’d worked out their financial plans taking it into consideration left with problems such as mortgage payments and pension plan contributions. However, according to the campaign group, it’s not too late to lodge expat objections once they’ve been officially notified of the changes.

In a further attempt to get some sense out of the devastating rule change, United Expats of the Netherlands has launched a template Notification Letter format which can be considered to be a fully legal objection, provided it’s sent by six weeks after written notification of the tax changes. The group states it’s now critical that those wishing to take legal action either along with UENL or individually must be aware of the timeline for submitting the objection. The letter itself is in the Dutch language and has been prepared by a Dutch law firm.

The 30-per cent ruling dates from 2006, and was a highly successful incentive which persuaded a number of highly-skilled expatriate professional entrepreneurs to choose the Netherlands over other similar locations. It addressed the high cost of moving and setting up a business in the country, by allowing expat incomers to deduct 30 per cent of their local income tax liabilities each year over an eight year period. On the back of the plan, many expats took on mortgages and made financial plans both for their businesses and for their retirement savings, all of which were thrown into chaos when the plan was abruptly shortened from eight years to five without grandfathering for existing holders.

Ever since the announcement was made, UENL has fought for it to refer only to future recipients, and is determined to continue fighting for its members and other expatriate business people affected by the sudden cut. The group is now an official foundation, backed by sound legal advice and is still committed to ensuring the government stands by its original deal.