Local officials in Amsterdam-area call for 30% ruling to be scrapped

Around 40 local politicians from the greater Amsterdam-area have joined forces to write a letter urging the national government to scrap the 30 percent ruling, claiming that it is adding to pressure on the Dutch housing market. This includes officials from Amsterdam, Haarlem and Almere, to name a few. 

30% ruling creates “unfair competition” in Dutch housing, say local officials

The leader of the local PvdA party in Haarlem, Maarten Wiedemeijer, initiated the call to abolish the 30 percent ruling. Together with support from 40 officials from parties such as PvdA, GroenLinks, SP and other local parties, a letter was written to the national government calling for an end to the expat tax break, Wiedemeijer reported in a social media post.

The 30 percent ruling is a tax break for highly skilled migrants working in the Netherlands, which allows them to claim the first 30 percent of their income as tax-free during the first five years of residency. 

“The combination of economic growth, the resulting labour migration and the delay in building new homes has led to extraordinary pressure on the housing market,” wrote the local officials. The letter also claims that the tax break creates “unfair competition” as these internationals can pay more in rent and mortgage costs, inevitably pushing up housing prices. 

Expat tax break becomes discussion point yet again

While many like to point the finger at internationals for causing the Dutch housing crisis, a UN official previously said that immigration is not to blame, but rather the government’s housing policy. 

This is not the first time calls have mounted for the 30 percent ruling to be cut. In 2024, the tax break was going to be phased out by reducing it to 20 percent after 20 months, then to 10 percent after another 20 months, before being removed entirely after a final 20 months at 10 percent. 

However, experts warned that cutting the 30 percent ruling could damage the Dutch economy and cost the government more in administration costs. The government then decided to reverse the changes and instead introduce a fixed reduction from 30 percent to 27 percent from 2027.