Important Updates
Important Updates
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
July 3, 2025 | CanadaCanada: Ontario Implements Key Reforms to the Immigrant Nominee Program
July 3, 2025 | CanadaCanada: Québec Reopens Skilled Worker Program and Unveils Selection Criteria
July 3, 2025 | United Arab EmiratesUnited Arab Emirates: Temporary Pause on Issuing Freelance Visas
July 3, 2025 | United KingdomUnited Kingdom: Migration Advisory Committee to Assess Salary Thresholds, Temporary Shortage List Occupations
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
July 3, 2025 | CanadaCanada: Ontario Implements Key Reforms to the Immigrant Nominee Program
July 3, 2025 | CanadaCanada: Québec Reopens Skilled Worker Program and Unveils Selection Criteria
July 3, 2025 | United Arab EmiratesUnited Arab Emirates: Temporary Pause on Issuing Freelance Visas
July 3, 2025 | United KingdomUnited Kingdom: Migration Advisory Committee to Assess Salary Thresholds, Temporary Shortage List Occupations
July 3, 2025 | United StatesUnited States: Congress Passes Budget Reconciliation Bill with Immigration Impact
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

Netherlands: Preferential Tax Rule for Highly Skilled Workers Likely to be Restricted from January 1, 2024

October 31, 2023

insight-news-default

Country / Territory

  • NetherlandsNetherlands

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The Dutch lower house of parliament has approved legislation which – from January 1, 2024 – would restrict the ‘30 percent’ preferential tax treatment provided to eligible highly skilled foreign workers.
  • Currently, under this rule, eligible foreign nationals do not need to pay tax on up to 30 percent of their income for five years, but the applicable timeframes and percentages will be reduced over time.
  • Individuals who currently receive the ‘30 percent’ preferential tax treatment will be subject to a transitional arrangement – the details of which remain to be confirmed.
  • The legislation must still be approved by the Dutch upper house of parliament, with a vote on the issue expected in December 2023.

The situation

The Dutch lower house of parliament has approved legislation which – from January 1, 2024 – would restrict the preferential tax treatment provided to eligible highly skilled foreign workers.

A closer look

  • The 30 percent tax rule. Under this rule, eligible foreign nationals do not need to pay tax on up to 30 percent of their income for five years.
  • Proposed changes. The legislation proposes that eligible nationals who commence working in the Netherlands on or from January 1, 2024 will receive the following discount on their income tax:
    • A reduction of up to 30 percent for the first 20 months of working in the Netherlands;
    • A reduction of up to 20 percent for the subsequent 20 months of working; and
    • A reduction of up to 10 percent for the final 20 months of working.
    • After the end of 60 months, the foreign national will no longer enjoy any income tax reduction.
  • Transitional period. Individuals who currently receive the ‘30 percent’ preferential tax treatment will be subject to a transitional arrangement – the details of which remain to be confirmed.
  • Eligibility. To be eligible for the ‘30 percent’ tax break, applicants must be foreign nationals; have expertise that is unavailable in the Dutch labor market; and have lived outside Netherlands (more than 150 kilometers from the Dutch border) for more than 16 months in the two years before commencing work in the Netherlands. The recent legislation does not propose changing these eligibility requirements.
  • Upper limit. Following separate legislative changes in September 2022, from January 1, 2024, the ‘30 percent’ tax break will no longer apply to that portion of a salary above the public sector pay limit (which in 2023 was EUR 223,000).

Impact

If these laws are passed, employers will need to play closer attention to each eligible foreign employee’s tax obligations under the ‘30 percent’ system, as these obligations will now be changing over the five-year period. This will likely require employer payroll services to amplify their internal monitoring systems, given a more complex regulatory landscape. Employees, meanwhile, will need to account for reduced tax benefits over the five-year period, which will ultimately reduce their after-tax position.

Background

  • Rationale for the rule. The Dutch government has explained the ‘30 percent’ tax rule as a reimbursement for costs incurred, and benefits lost, due to a highly skilled foreign worker’s departure from their country of origin. This includes travel expenses, housing costs and day-to-day expenses.
  • Previous narrowing of the rule. In 2019, the duration of the ‘30 percent’ tax rule was reduced from eight years to five years.

Looking ahead

The legislation must still be approved by the Dutch upper house of parliament, with a vote on the issue expected in December 2023.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • NetherlandsNetherlands

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Podcast

David Kipp über Migration von Indien nach Deutschland

David Kipp von der Stiftung Wissenschaft und Politik im Gespräch mit Marius Tollenaere, Partner im Frankfurter Büro von Fragomen.

Learn more

Blog post

EB-5: What You Should Know—And Why It Might Be Worth It

Partner Dan Schwarz and Senior Associate Mikhail (Mike) Izrailev provide an overview of the EB-5 visa program, highlighting its benefits and key considerations for potential investors.

Learn more

Blog post

The 11th Seat: Timor-Leste's ASEAN Debut and the Shifting Map of Regional Mobility

Business Immigration Consultant Ryaihanny Sahrom discusses Timor-Leste's ASEAN debut and its impact on regional mobility.

Learn more

Blog post

Understanding the Saudi Real Estate Market: What Expats Need to Know

Destination Services Manager Ali Sikandar provides essential information for expats navigating the Saudi real estate market.

Learn more

Blog post

2025 Middle East and Africa Immigration Trends: Balancing Localization Concerns with Global Talent Attraction Efforts

This blog highlights the most significant immigration developments shaping the Middle East and Africa in 2025, drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July.

Learn more

Video

French Citizenship by Decree | Everything You Need to Know

Immigration Consultant Azela Hadia covers everything you need to know about French citizenship by decree, a legal process through which a foreign national can acquire French nationality.

Learn more

Blog post

Navigating the UAE Corporate Landscape: A Strategic Guide for Startups and Entrepreneurs

This blog provides an overview of the key factors to consider when deciding in which jurisdiction to set up a company in the UAE.

Learn more

Media mentions

TechRound: Experts Share: How Will The Global Talent Visa Help The Startup Industry?

Manager Alexander Hood explains how the UK’s Global Talent visa helps tech founders start and grow businesses without employer sponsorship.

Learn more

Blog post

The Future of Care Work in the UK: Understanding the Latest Immigration Announcements

Partner Siobhan Owers and Senior Associate Asif Hanif discuss the latest UK immigration announcements and their impact on the future of care work.

Learn more

Media mentions

Toronto Star: 25 Years Ago New Immigrants to Canada Told Us Their Dreams. We Checked In to See How They’ve Fared

Senior Business Immigration Analyst Rabaa Biry recently shared her journey to Canada and how support and perseverance helped shape her path forward.

Learn more

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Podcast

David Kipp über Migration von Indien nach Deutschland

David Kipp von der Stiftung Wissenschaft und Politik im Gespräch mit Marius Tollenaere, Partner im Frankfurter Büro von Fragomen.

Learn more

Blog post

EB-5: What You Should Know—And Why It Might Be Worth It

Partner Dan Schwarz and Senior Associate Mikhail (Mike) Izrailev provide an overview of the EB-5 visa program, highlighting its benefits and key considerations for potential investors.

Learn more

Blog post

The 11th Seat: Timor-Leste's ASEAN Debut and the Shifting Map of Regional Mobility

Business Immigration Consultant Ryaihanny Sahrom discusses Timor-Leste's ASEAN debut and its impact on regional mobility.

Learn more

Blog post

Understanding the Saudi Real Estate Market: What Expats Need to Know

Destination Services Manager Ali Sikandar provides essential information for expats navigating the Saudi real estate market.

Learn more

Blog post

2025 Middle East and Africa Immigration Trends: Balancing Localization Concerns with Global Talent Attraction Efforts

This blog highlights the most significant immigration developments shaping the Middle East and Africa in 2025, drawing from Fragomen’s upcoming 2025 Regional Immigration Overviews—available mid-July.

Learn more

Video

French Citizenship by Decree | Everything You Need to Know

Immigration Consultant Azela Hadia covers everything you need to know about French citizenship by decree, a legal process through which a foreign national can acquire French nationality.

Learn more

Blog post

Navigating the UAE Corporate Landscape: A Strategic Guide for Startups and Entrepreneurs

This blog provides an overview of the key factors to consider when deciding in which jurisdiction to set up a company in the UAE.

Learn more

Media mentions

TechRound: Experts Share: How Will The Global Talent Visa Help The Startup Industry?

Manager Alexander Hood explains how the UK’s Global Talent visa helps tech founders start and grow businesses without employer sponsorship.

Learn more

Blog post

The Future of Care Work in the UK: Understanding the Latest Immigration Announcements

Partner Siobhan Owers and Senior Associate Asif Hanif discuss the latest UK immigration announcements and their impact on the future of care work.

Learn more

Media mentions

Toronto Star: 25 Years Ago New Immigrants to Canada Told Us Their Dreams. We Checked In to See How They’ve Fared

Senior Business Immigration Analyst Rabaa Biry recently shared her journey to Canada and how support and perseverance helped shape her path forward.

Learn more

Fragomen news

2025年6月 アメリカ移民法ダイジェストLearn more

Media mentions

Arab News: Growing Saudi Film Industry Driving Job Creation, Economic Growth

Partner Abeer Al Husseini highlights how Saudi Arabia’s growing film industry is creating jobs, attracting global talent and supporting economic diversification.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.