Some 40 local politicians from the Amsterdam area, including Amsterdam, Haarlem and Almere, have written to the national parliament calling for the 30% tax break granted to some international workers to be scrapped.

Haarlem’s local PvdA leader Maarten Wiedemeijer, who is the driving force behind the letter, said on social media that the cabinet wants to leave the measure in place at a time when “there is a need for more opportunities for home hunters”.

In the letter, PvdA, GroenLinks, SP and local party members from across the metropolitan region call on the government to scrap the ruling. Around 100,000 people are currently thought to be claiming the tax break, or around 0.6% of the population.

“The combination of economic growth, the labour migration which stems from it and the delay in building new homes has led to extraordinary pressure on the housing market,” the letter is quoted as stating.

It goes on to claim that the 30% ruling, by which some high-earning foreign workers can use to reduce their tax bill for up to five years, is fostering “unfair competition” because they can pay more for a place to live.

The new government has torn up plans by the previous administration to reduce the ruling from 30% to 27% following pressure from companies such as ASML, which are concerned it would hurt the Netherlands’ competitiveness.

A report by economic research bureau SEO in 2024 also debunked the idea that “people with the 30% ruling” are responsible for significantly higher rents in places like Amsterdam.

“Compared to the whole population, there is virtually no price effect of economic significance,” the report said. “In some areas such as Amsterdam, there may be an effect on rent and purchase prices, which is very modest compared with the total price increase during the evaluation period.”

Maarten Wiedemeijer did not respond to Dutch News requests for comment.

The shortage of housing, both to rent and to buy, was described as the biggest issue facing the city’s international community in Dutch News’ local election survey.

It has also emerged as the main concern in Dutch News’s series of 10 city profiles ahead of the local elections on March 18.