Infuriated Expats Cry Foul as Dutch Seek to Shrink Tax Benefit

  • Dutch government limiting benefit to five years from eight
  • Companies, universities worry it will hurt talent-hunt efforts

Photographer: Jasper Juinen/Bloomberg

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Almost five years ago, Antonios Cheras, a Greek national, moved with his family to the Netherlands even though he spoke no Dutch and had many more job offers in the U.K. The draw: an unbeatable tax break.

The so-called “30-percent rule,” which exempts 30 percent of an expat’s salary from income tax for eight years, has been a major factor in attracting people like Cheras. Now, Prime Minister Mark Rutte’s government, looking to deliver on a coalition deal, is seeking to limit it to five years -- retroactively.