Amsterdam Politicians Demand End to Tax Break for International Workers
A group of around 40 local politicians from cities in the Amsterdam metropolitan region has called on the national parliament to abolish the 30% ruling (tax benefit for certain international workers), arguing that the measure worsens pressure on the housing market.
The initiative was led by مارتن ويديميير, local leader of PvdA (Partij van de Arbeid – Labour Party) in Haarlem. In a letter signed by politicians from Amsterdam, Haarlem, Almere and other municipalities, representatives from GroenLinks (GreenLeft), SP (Socialistische Partij – Socialist Party) and local parties urged the government to end the tax break.
The 30% ruling allows certain highly skilled foreign workers to receive up to 30% of their salary tax-free for a maximum of five years. About 100,000 people are currently benefiting from the scheme, which represents roughly 0.6% of the population.
According to the politicians’ letter, strong economic growth, increased labor migration and delays in building new homes have created enormous pressure on the housing market. They argue that the tax advantage gives some international workers greater purchasing power, allowing them to offer higher rents or purchase prices than local residents.
However, previous research has challenged this claim. A 2024 report by SEO Economisch Onderzoek (SEO Economic Research) concluded that the 30% ruling has little measurable impact on housing prices overall. While the effect may exist in cities such as Amsterdam, the report described it as modest compared to broader market factors driving price increases.
Despite criticism from local politicians, the national government recently decided to maintain the tax rule. Earlier plans to reduce the tax advantage from 30% to 27% were dropped after pressure from major companies, including ASML (Advanced Semiconductor Materials Lithography), which warned that weakening the benefit could harm the Netherlands’ ability to attract international talent.
Housing shortages remain one of the most pressing issues in the Amsterdam region. Surveys among the international community and local residents indicate that the lack of affordable homes to rent or buy is currently one of the biggest challenges facing the city.
The debate over the tax rule is also becoming a key topic ahead of the upcoming local elections scheduled for March 18, as political parties continue to argue over how to address the ongoing housing crisis.