Tax breaks for expats at risk in Holland

13th October 2011, Comments 1 comment

The Amsterdam council has sent an urgent letter to Deputy Finance Minister Frans Weekers about his intention to limit the tax breaks currently enjoyed by expats.

A spokesperson for Mayor Eberhard van der Laan said that a number of companies have already expressed concern after a report on the intended measure was published in.

Mayor Van der Laan writes he fears for a deterioration of the Dutch knowledge economy and “our carefully constructed investment climate.” He expects international companies will move elsewhere when the limitations on expats’ tax breaks are introduced.

At present, expats working in the Netherlands pay no taxes over 30 percent of their income. In future, this tax break will only apply to workers earning more than 70,000 euros a year. International companies fear the measure will lead to a substantial increase in their salary costs.

© Radio Netherlands Worldwide

1 Comment To This Article

  • Zippy posted:

    on 14th October 2011, 00:30:27 - Reply

    Bravo, looks like the Dutch government has discovered yet another way to punch itself in the face for no apparent gain. At least if there's a tax break, then there's a reason to work there. Without it, you face some of the highest rents and living expenses in Europe with a political culture that's one of the paranoid and xenophobic.

    It's VVD, and so predictable. Everyone will tell them not do it; they'll insist that they know better and do it anyway. The result will be a complete mess that won't be cleaned up for years, if ever. It was the same with taxi reform, health reform, those idiot integration laws.... always the same.

    If the voters are dumb enough to keep voting for these clowns, then they deserve what they get.