> From a tax perspective, the salary agreed upon between you and your employer will be reduced by 30%. In return, you receive a 30% allowance as reimbursement for expenses.
This is not at all a 30% tax advantage lol.
This is not at all a 30% tax advantage lol.
Politically I think they originally justified it as covering expenses for people living in a new country (without having to declare e.g. trips home), but practically it’s a tool to help employers attract internationals and make it cheaper to offer internationally competitive salaries for professionals.
The immigrant gets €77,281.98 annually after tax.
Thats 27% more money in your bank account for the same work done.
And there is another huge benefit for those moving from the USA... Any income from shares or overseas income are taxed at the USA tax rate rather than the dutch tax rate.
A nitpick, but that's not "for the same work done", but for the same gross salary.
The benefit is in recognition of the extra home-making costs (and work) a highly skilled immigrant would have upon moving there.
A local would usually have local support system (friends, family, inheritance, knowledge of language...).