Update 14 November 2024
On 14 November, the House of Representatives approved the Tax Plan 2025. A key aspect are the proposed changes to the 30% facility. The curtail announced last year will be reversed. In 2027, the 30% tax-free allowance will also drop to a 27% tax-free allowance.
Specifically:
- From 1 January 2025, the curtail announced last year will be reversed. The reduction from a 30% to 20% to 10% tax-free allowance will not be implemented.
- In 2025 and 2026, it will remain possible to continue granting expats a 30% tax-free allowance.
- From 1 January 2027, this drops to a 27% tax-free allowance.
- Only expats who were already using the 30% facility in December 2023 will keep this 30% tax-free allowance for the entire term of their 30% facility. For others, this drops to 27% in 2027.
The vote in the Senate will follow on 17 December.
Update 18 September 2024
While the current new government wants to reduce the number of migrant workers, this does not apply to people from abroad who can add a lot to the economy, due to their unique knowledge and skills. The previous government curtailed the expat scheme. But that will now be largely reversed. From 2027, a 27 per cent deduction rate will apply for 5 years (was previously 30%). The salary standard will be raised from €46,107 to €50,436. For employees under 30 years of age with a master's degree, the salary standard will also be raised.
In the coming months, these plans will be debated in the House of Representatives and the Senate. Written and oral debates will be followed by votes scheduled for the following dates:
- vote in the House of Representatives on 14 November next.
- vote in the Senate on 17 December next.
As soon as the plans are formally adopted, the information on this page will be updated accordingly in January 2025.
Update 19 December 2023
On 19 December 2023 the Dutch Senate approved the tax plans for 2024. This means that expats who receive a decision for the 30% facility from the Tax Administration as of 1 January 2024 will be subject to the new terms. In the debate, the State Secretary stressed that for current cases, everything will remain unchanged.
News from 6 December 2023
The tax plans for 2024 include a curtailment of the 30% facility for expats. These are now allowed to receive 30% of their salary tax-free for 60 months.
From 1 January 2024, this will be restricted for new cases. The tax-free allowance will then be divided into three steps and significantly reduced:
- during the first 20 months: 30%
- during the following 20 months: 20%
- during the remaining 20 months: 10%
Transitional arrangement
The tax plans provide a transitional arrangement for expats who are in possession of a decision from the Tax Administration no later than December 2023 and already receive the 30% tax-free allowance no later than December 2023. For this group, everything remains as it was: they can serve out the issued decision for the remaining period without changes.
Currently, the tax plan for 2024 is being debated in writing in the Dutch Senate. Hoping to positively influence decision-making, UNL has made the university's interests known to the minister. Nevertheless, HR advises managers who want to recruit personnel from abroad as of January 2024 to include this anticipated curtailment of the thirty percent facility in the recruitment process.