30% or extraterritorial cost sscheme

2025: 30% ruling or extraterritorial costs scheme?

The 30% ruling has always made the Netherlands attractive for highly skilled migrants. However, due to a changed political climate the ruling has changed. It now seems that companies consider to go back to the extraterritorial costs scheme again. What is better; 30% ruling or extraterritorial costs scheme?

After the changes in the 30% ruling that were implemented in per January 1st, 2024, the Houses of Parliament in the Netherlands asked for a sooner evaluation than planned. You can find the full results of the evaluation here (with a summary in English). Below you can find the main points of the summary.

30% ruling changes – the consequences

According to the research:

  • due to the changes per January 1, 2024, the influx of highly skilled migrants will decrease by about 10-15%.
  • if the 30% ruling were to be abolished this means about 40 percent decrease in influx of highly skilled migrants.
  • a retrenchment of the 30%-facility will have a negative effect on the level of investment in the Netherlands.

30% ruling or extraterritorial costs (ETK) scheme?

All interviewees in the research expect that a significant proportion of 30% users will switch to the ETK scheme because it will become more favourable. However, reimbursing actual costs, which the practice in the ETK scheme, means a sharp increase in the administrative burden for both companies and their employees.

The 30% ruling still seems to be the best option. We trust that Parliament will be wise enough to keep the ruling in place and -even better- to go back to the 2023 rules again.

The effect of the 30% ruling on housing prices

In the recent past there were many news items on how the influx of (due to the 30% ruling rich) expats pushed the rental prices in the Netherlands.

The research shows that on average 11,168 additional highly skilled migrants come to the
Netherlands every year through the 30%-facility, of which 5,339 live in Amsterdam.

A very rough rule of thumb is that a population increase of one percentage point due to migration approximately leads to one and a half percentage points higher rents and three percentage points higher purchase prices. Compared to the entire population, there is virtually no price effect of economic significance, according to the researchers. In some areas such as Amsterdam there may be an effect on rents and purchase prices, which (according to the researchers) is very modest compared to the total price increase in the evaluation period.

More info

Do you wish to receive more information our our proposal for the 30% ruling application? Please send a message to info.nl@anywr-group.com and we’ll respond within one business day.

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