Dutch Budget: Expat Tax Break Shrinks, Home Sales Tax Cut, School Meals Boost

The Dutch government has announced plans for a new budget that includes adjustments to the expat tax break, real estate transfer tax, and funding for school meals. The 30% ruling, which allows foreign workers to keep a portion of their income tax-free, will be reduced to 27%, a move that had been widely anticipated but less severe than some feared. Additionally, the transfer tax on second homes will be lowered from 10.4% to around 8%, aiming to stimulate real estate investment. The budget also earmarks more funding for the program providing free meals to schoolchildren in low-income areas, potentially expanding its reach to more students. These changes come as the government navigates a complex economic and political landscape, balancing the needs of businesses and foreign workers with other policy objectives.