IT Professional from India
I am Kumar, 35 year old IT professional expat from India, resident of Netherlands for 7+ years. I came here as Knowledge migrant via an Indian IT company. I have expertise in financial and banking domain along with strong technical skills. I feel blessed to be working and living in Netherlands as the work-life balance is very good here. I live with my wife and 2 kids in a house which we bought 2 years ago. I am the only source of income for family. My daughter goes to international school and soon my son will start pre-school.
When I came to the Netherlands I was granted 30% ruling for 10 years (until April-2021). Based on that ruling and trust in Netherland government, I have taken financial commitments which includes the house in Netherlands and my existing overseas liabilities. With this proposal to shorten the 30% ruling, I will no longer receive the 30% ruling benefit as of 1st January 2019. So with this unforeseen shortening, I will lose the benefit for 2.4 years.
It would result in an around 20% lower in-hand income on average. With this tax ruling changes I will be in 500 euros monthly deficit and it will be a tough financial situation for me and family. It would result in burning down my existing savings and breaking the investments to sustain here.
The proposed retroactive changes will result in my inability to afford my current mortgage payments, international school fees and overseas liabilities. A worst-case scenario is we will have to rethink our stay in this country. These are life-changing consequences for family. I was prepared to handle the situations from April-2021, but this unexpected shortening has huge impact from 2019.
Although your 30% ruling evaluation states that “additional costs are relatively high in the first years and then gradually decrease.” - But that is not the case. The costs kept increasing and increasing. For instance the rent kept increasing, international school fees kept on adding up as family grows.
Also the evaluation says: “Approximately 80 percent of employees using the 30 percent facility do not use this for more than 5 years” – is this good enough for Dutch government to break the trust of existing expats who are committed to longterm stay in Netherlands?
I request Netherlands government and finance ministry to reconsider the "retrospective" application of the law. I believe a serious government keeps its promise. Please do not apply the law retrospectively.