> 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.
It actually works out better than 30%, quote is just an accounting game. You pay taxes on 70%, the top 30% is a tax free allowance. With a top marginal rate of ~50% it’s a massive savings.
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.
Imagine you and a local are both are paid €100k. The local gets €60,675.16 after tax.
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.
This is not at all a 30% tax advantage lol.