In recent months, an unprecedented number of South Africans have been heading to the Netherlands, marking a major shift in migration patterns. This rapid increase is no mere coincidence, but is caused by a combination of factors that make the Netherlands an increasingly attractive destination for South African expatriates. The Netherlands has emerged as a hotspot for South Africa's skilled professionals. The country is actively recruiting, particularly in fields such as finance, engineering and information technology, providing attractive incentives for South Africans seeking new career horizons.
Attractive tax incentives
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Beyond career prospects, an added attraction is that the Dutch government offers attractive tax breaks to highly skilled immigrants. The Netherlands has a 30% tax regime for foreign workers, which is a huge advantage for South African expatriates. This initiative allows individuals to receive 30% of their salary tax-free, making the Netherlands an economically attractive country for those seeking both professional growth and financial benefits. These incentives are particularly advantageous in sectors such as finance and technology, providing further motivation for South Africans considering moving to the Netherlands. The Netherlands' efficient support system for expatriates plays an important role in easing the transition for South Africans. Programs like the International Expat Center provide comprehensive assistance covering various aspects such as customs, arrival, orientation, residential tours, and even practical matters such as social security, health insurance, and banking.
Rapidly increasing number of “second homes”
Remarkably, the Netherlands has truly become a 'second home' for South Africans. With an estimated 35,000 South Africans currently residing in the country, the majority actively participating in the workforce, the Netherlands is a preferred destination for those seeking familiarity and community in a foreign land. It is undergoing a transformation. Beyond financial considerations, work-life balance in the Netherlands is an important factor. With an emphasis on 'family/leisure time' and a typical working week of approximately 35 hours, the Netherlands offers a lifestyle that resonates with South Africans seeking a more balanced and fulfilling professional and personal life. I am.
Securing residence permits for highly skilled immigrants
To live and work in the Netherlands, you need a Highly Skilled Immigrant Residence Permit, which is available to foreigners deemed able to contribute to the Dutch knowledge-based economy. Successful candidates must have an employment contract with a Dutch employer or research institution, and their salary base cannot be lower than that of a Dutch national in the same position. Additionally, you must meet certain salary criteria. On January 1, 2024, the salary base increased by 6.45% compared to the 2023 gross monthly salary base. If the job seeker is over 30 years of age, the minimum gross salary will apply. Positions based in the Netherlands should be worth €63,972 per year. If under 30 years of age, the employee must earn a minimum gross salary of 46,908 euros per year. Permits are valid for up to five years or for the duration of the employment contract.
Engineering professions are at the forefront of in-demand skills in the Netherlands, with approximately 13% of all job advertisements related to engineering roles, particularly in mechanical, industrial, electrical, food, biomedical, Occupations such as energy and computer science are the most prominent. civil engineering. We also seek skilled and qualified candidates with expertise in human resources, ICT security, pedagogy, solar installations, healthcare, and construction.
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Tax considerations for South African expatriates
A clear understanding of the tax implications is essential for South Africans embarking on a trip to the Netherlands. A comprehensive plan that includes financial, tax, and medical considerations is essential. In both South Africa and the Netherlands, it is important to review factors such as medical aid, life insurance, assets and superannuation to avoid financial and regulatory challenges. For South Africans seeking to protect their overseas income from taxation by SARS, it is also important to consider permanent or annual suspension of tax residence. Although the Netherlands promises tax benefits, careful planning is essential for South African expatriates departing from their home country. Working with a provider familiar with the nuances of international tax will ensure a smooth transition. This approach eliminates the confusion of expatriates seeking financial and tax advice and allows for smooth integration into the Dutch tax system.
Roxanna Naidoo is a Global Partner at Tax Consulting SA.