Revising 30% ruling; more companies may relocate; knowledge migrants boost job growth
Hello, Global Player ??.
March was a month full of debates for Global Mobility in the Netherlands.
Recent changes in immigration policies and how they affect the Dutch economy have led to discussion between the Government and the business sector.
Parliament is dissatisfied with some parts of the new 30% ruling policy, showing they are concerned about keeping skilled workers in the country, while the government is working hard to keep companies like ASML in the Netherlands.
People are realizing how important high-skilled immigrants are to job creation, but some companies are still thinking about moving because of the rule change’s impact.
Additionally, there are new document rules for high-skilled immigrants, which could affect both employers and people who want to move here.
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Find out more about the latest Global Mobility news and trends below??.
In today's edition:
1. Parliament regrets 30% ruling regulation
Many Dutch parliamentarians (MPs) are having second thoughts about a recent vote that reduced the tax benefit for highly skilled migrants. This benefit, known as the 30% ruling, cover extraterritorial costs faced by knowledge migrants.
The move was aimed to free up funds to lower student loan interest rates. However, parties like the pro-farmer BBB and the center-right CDA, who originally supported the cut, now say they would like to reverse it. The center-left D66 party is still undecided.
"We were under pressure to help students, but this cutback was too drastic," admitted a CDA leader. "Making decisions under time constraints can have unintended consequences. This is a clear example."
Parliamentarians wanted to assist students struggling with large debts after a brief period when government grants were eliminated. Last year, an independent MP, Pieter Omtzigt, proposed reducing the 30% ruling benefits to cover the estimated €200 million cost on students debts.
The Dutch Ministry of Finance is currently conducting a survey, through research agency SEO, to evaluate the importance of the 30% ruling to knowledge migrants and companies. The survey results will contribute to decision-making regarding 30% ruling regulations in July.
You can take the survey here before April 14, 2024.
2. Dutch Cabinet wants to retain ASML in the Netherlands
Both ASML and NXP, prominent semiconductor firms in Eindhoven, have expressed concerns over Dutch political initiatives to regulate immigration, restrict English-taught university programs, and diminish key tax incentives for attracting international talent.
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To deter potential workforce relocations, the Dutch Cabinet is on the verge of finalizing a significant financial package, totaling at least €1.4 billion, aimed at retaining crucial high-tech companies like ASML and NXP in the Netherlands.
This proposed fund includes substantial investments in Eindhoven University of Technology, extensive infrastructure enhancements in the Eindhoven region, increased housing provisions, and potential tax incentives.
The proposal from the caretaker Cabinet emerged on March 6, reflecting the urgent efforts to retain ASML's presence in the Netherlands, following its recent hint at expanding operations abroad.
3. Highly Skilled Migrants are contributing to job growth
Mayor of Eindhoven and former Minister of Finance, Jeroen Dijsselbloem, highlights the economic benefits of knowledge migrants. According to him, every highly-educated immigrant ASML brings in leads to the creation of three vocational jobs.
While Sandra Philippen, chief economist at ABN Amro, refrained from providing specific figures, she acknowledged the positive impact of knowledge migrants on the labor market:
“They start working somewhere. That generates more activity. Subsequently, there is additional demand, and new jobs are created. Additional people are needed for these jobs.”
Despite the economic benefits, immigration remains a contentious issue among political parties in the Netherlands. Concerns about limiting immigration, including skilled workers, laborers, persist among parties.
4. Boskalis and others plan relocation due to regulations
Boskalis, renowned for its offshore services, is establishing a regional headquarters in Abu Dhabi, Saudi Arabia, due to Dutch parliament's proposed restrictions on highly skilled worker influx and the prevailing technical personnel shortage.
Highlighting the logistical advantages and streamlined visa processes in Saudi Arabia, Boskalis CEO Berdowski emphasized the strategic significance of the region, offering access to Asia and a diverse talent pool. The Abu Dhabi office is currently staffed by 300 individuals representing 20 nationalities.
“A lot of listed companies are investigating the possible departure of their headquarters abroad,” chairman Ingrid Thijssen said. “You need at least two hands to count them.”
Besides ASML and Boskalis, numerous companies are considering relocating their headquarters abroad due to concerns about the Netherlands' business climate, taxes, and labor migration policies. Ingrid Thijssen, president of VNO-NCW, stressed that the number of companies exploring this option is considerable and cannot be overlooked.
5. New document requirements for Highly Skilled Migrants
Starting April 1, 2024, recognized sponsors must adhere to new documentation requirements for hiring highly skilled migrants. These records must be maintained at the worksite for a duration of five years after the employer ceases to be the recognized sponsor of the migrant.
New documents:
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