Poll: Should Ireland give Dutch-style tax breaks to tempt high-flying foreigners to these shores?

Skilled workers that move to the Netherlands can get a tax-free lump sum equal to 30% of their salary.

By Conor McMahon Deputy editor, Fora

IRELAND SHOULD FOLLOW the Netherlands’ lead and give big tax breaks to skilled foreign workers.

So says Aengus Kelly, chief executive of Dublin-based aircraft lessor Aercap Holdings, who last week told the National Aviation Development Forum that Ireland is losing in the race for exec-level talent.

The aviation chief said there was “no way” Ireland’s relatively small gene pool could produce enough managers at senior levels to cater for multinational firms.

In order to remain competitive, the country needs to attract decision makers, he said, because too many jobs here “are replaceable by the next lowest cost producer”.

To entice top level talent to these shores, he argued that we should adopt a Dutch-style tax scheme for skilled expatriates that relocate here.

Global Airfinance Conferences Aercap CEO Aengus Kelly
Source: Photocall Ireland

Employers in the Netherlands can give overseas workers a tax-free lump sum worth up to 30% of their salaries for up to eight years.

Beneficiaries of the scheme must have skills that are scarce in the Dutch market, originate from a country at least 150 kilometres away and their annual taxable salary cannot be less than €37,000.

The 30% tax programme has been a point of contention during build up to the Dutch general election on 15 March.

English-language news site DutchNews.nl reported last week that the ruling People’s Party for Freedom and Democracy is the only party on the campaign trail that plans to maintain the 30% tax ruling as it is.

Others want to re-write the scheme or scrap it altogether, largely because the government spending watchdog said last year that the pros and cons of the programme had never been properly examined.

With that in mind, we’re asking Fora readers this week: Should Ireland give Dutch-style tax breaks to tempt high-flying foreigners to these shores?