Dutch MPs vote to limit 30 percent ruling from 2024

Dutch MPs vote to limit 30 percent ruling from 2024

As expected, the House of Representatives has passed an amendment to reduce the 30 percent ruling, a tax advantage for highly skilled migrants working in the Netherlands. The savings made on the scheme will be used to reduce interest on student loans.

MPs vote to significantly limit 30 percent ruling

In a vote late last night, the last day of parliament before the general election, MPs voted through a measure to significantly limit the scope of the 30 percent ruling. The amendment was proposed by Pieter Omtzigt and backed by major political parties including ChristenUnie and GroenLinks / PvdA.

As it currently stands, highly skilled migrants (defined as those who meet certain income thresholds) can apply for the ruling to have 30 percent of their salary made exempt from taxation. They have to meet other prerequisites, for instance that they have moved to the Netherlands specifically for a job that could not be filled by local candidates. 

In 2019, the Dutch government shortened the maximum validity of the ruling from eight years to five, but now with this new amendment Omtzigt and his backers seek to go further: from January 1, 2024, the ruling will still apply for a maximum of five years, but the 30 percent saving will only hold for 20 months. After that, 20 percent of the employee’s salary will be exempt from tax for the next 20 months, and then 10 percent for the final 20 months. There will be a transition period put in place for people who are currently claiming the tax break.

Omtzigt says 30 percent ruling is responsible for Amsterdam housing crisis

Omtzigt, who left the Christian Democratic Appeal in 2021 and in August 2023 founded a new party called New Social Contract, is currently ahead in the polls. He has long been campaigning for the 30 percent ruling to be reduced, and in his election manifesto has called for it to be scrapped entirely. 

In particular, he blames the 30 percent ruling for the tight situation on the housing market in cities like Amsterdam, saying that it allows expats to pay more rent than others, pushing up rates and pricing locals out of the market. 

He said that the changes to the scheme voted through last night would ultimately yield savings of almost 200 million euros per year. That money is earmarked for reducing the interest rate paid by students on their loans. The interest rate on these loans is about to increase from 0,46 percent to 2,46 percent.

Image credit: Nancy Beijersbergen /

Abi Carter


Abi Carter

Managing Editor at IamExpat Media. Abi studied German and History at the University of Manchester and has since lived in Berlin, Hamburg and Utrecht, working since 2017 as a writer,...

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GokceTuncay2 13:22 | 27 October 2023

"There will be a transition period put in place for people who are currently claiming the tax break." From this statement, I don't understand what this transition period will be like. Does it mean this change will not apply to the current expats still within the first 5 years' ??

Chin-LunWei2 14:30 | 30 October 2023

I'm also curious about this question, does it also impact people who has already got the certification of 30% ruling?

AlexB.2 10:11 | 28 October 2023

Employing the classic 'divide and conquer' strategy, it's evident that the Netherlands has undergone significant changes over the years. The nation faces increasing challenges, including growing poverty, rising concerns about safety, and soaring costs of living. While some may point fingers at expats, it's essential to recognize that behind the scenes, powerful elites continue to benefit and perpetuate these issues, leaving the average citizens to bear the brunt of the consequences. Food for thought: All landlords are native dutch, and all they care about is who pays more.

AlexanderSmirnov2 23:05 | 28 October 2023

That's a classical example of cheap populism. Easiest way to achieve a chep popularity amoung the people - point point the finger to the group which cannot vote and start blaming like "You know, who is the cause of all your problem? This wealthy expats! They come! They take your highly paid workplaces! And also asking for a tax deduction?! They are your problem!". Come on, we are taking the places which cannot be filled with the locals! I'm very much hope for senate to blok this nonsense. I'm very much expecting the kennismigrants strike or something like that!

AlexSan2 09:39 | 29 October 2023

This reminds of the bus adverts for Brexit, "we are giving billions to EU, why not use this money for our health system?". We all know how this logic worked for UK. I see Netherlands is sliding in the same direction.

V.Caro2 14:05 | 30 October 2023

Good morning, What about people who wish to return to the NL?. Let's say, someone who worked for 2 years , left the NL and wish to move back again in 2024, this person still has 3 years "remaining" of 30%-ruling. How those 3 years would be treated? Would the person would only be entitled to "20%-ruling" and then "10%-ruling" ?

eldarbaghirov2 06:52 | 6 November 2023

Is it going to be applicable to the current 30% ruling holders? Or for new joiners only in 2024?

MichailKvasnikov2 08:49 | 14 November 2023

I am surprised about this discussion I am sure after 2 years their will not be any expats living in the Netherlands but still people would not be able to rent any house because the prices will be high.Poverty will rise because there is no social system and real care for people.The only thing that drives Netherlands is money! The super capitalistic system will destroy the humanity and at the end you will be an enemy to each other like animals.