Amsterdam afraid of expat exodus
The municipality of Amsterdam has delivered an urgent letter to the Secretary of Finance Frans Weekers expressing its concerns about the tightening of the 30% ruling in the Tax Plan. This was reported in Het Financieele Dagblad on Thursday. Rotterdam and The Hague would also share this fear.
Income threshold knowledge migrants
In the Tax Plan for 2012 Weekers had announced his intentions to bring the 30% ruling in line with the knowledge migrant scheme, which has an income threshold in order to prevent misuse. Through the ruling knowledge migrants who work in the Netherlands do not have to pay tax over the first 30 percent of their income.
The change ensures that only expats with a gross salary above about 70,000 euro are still eligible for the tax benefit.
Amsterdam thinks that 'in the short term this will lead to the loss of iconic international businesses'. The concern is that young IT professionals, teachers or designers will not satisfy the income level and will find work elsewhere abroad.
Location, location, location
Amsterdam does not perform badly as a place of business. According to an European comparison of the best locations for business by consultancy firm Cushman & Wakefield the city rose from sixth to fourth this year. London, just as last year is considered the best business location, followed by Paris and Frankfurt.