This Country Benefits from Hiring Italians with Salaries Exceeding €2,900

Incentives for Expats in the Netherlands

The Netherlands, often referred to as Holland—albeit Holland only consists of two of the country’s twelve provinces—has implemented attractive incentives for expatriate workers.
One noteworthy initiative is the “30% ruling,” aimed at encouraging companies to hire foreign talent.

Essentially, if a foreign worker, say from Italy, takes up employment in the Netherlands, their employer can benefit from a 30% tax exemption on the employee’s salary.
This makes hiring foreign, particularly Italian, talent appealing for companies in the Netherlands.

Why Companies Prefer Hiring Italians

To understand the allure for Dutch companies in hiring Italian workers, one must examine the tax benefits associated with the 30% ruling.
Employers hiring a foreign employee can reduce their taxable amount by 30%, compensating for the costs associated with relocation.

Interestingly, this incentive also extends to self-employed individuals, presenting an additional lure for those considering starting a business in the Netherlands.
The benefit can be availed for up to eight years, provided the foreign worker has highly sought-after skills.

The specific skill requirement is assessed through salary; as a guideline, a gross annual salary exceeding €37,747 (over €2,900 monthly) qualifies for this exemption.
Younger workers under the age of 30 with a master’s degree can benefit from the ruling with a salary of at least €28,690 (about €2,200 monthly).

Additionally, foreign workers under this ruling enjoy favorable tax treatment, only being taxed on a portion of their income, which significantly enhances their net earnings.

Understanding Life in the Netherlands

Working in the Netherlands is particularly appealing.
According to Statista.com, the average salary in 2022 was €52,277 annually.
While the cost of living may be slightly higher than in Italy, the purchasing power is notably better.
Data from WorldData.info indicates that a Dutch worker can buy 33% more goods and services than their Italian counterparts.

Moving to the Netherlands is especially advantageous for those with in-demand skills and experience.
High-demand professions include Data Protection Officers, Growth Hackers, Robotics Engineers, and more, as reported in the Emerging Jobs Report.

Speaking good English is often sufficient for job applications, although knowledge of Dutch is a plus.
Moreover, for EU citizens, relocating to the Netherlands is relatively straightforward, as free movement is permitted.
A BSN (Burger Service Nummer), akin to a tax code, is needed for residents staying over four months, required for various services like banking and healthcare.
This can be easily obtained from the local municipality.