If you’re looking into relocating to the Netherlands for work, you’ve probably come across the 30% ruling. Here’s a clear, rundown of what the 30% ruling actually is, who can get it, and what’s changing, without the complicated tax jargon.
What is the 30% ruling?
The 30% ruling, officially called the expat scheme, is a Dutch tax benefit for people recruited from abroad to work in the Netherlands. The idea behind it is simple: moving country for a job comes with extra costs. The scheme lets your employer pay part of your salary tax-free to help cover some costs.
Instead of being taxed on your full gross salary, part of it can be paid to you tax-free. That’s one of the reasons why the Netherlands are so attractive for international talent.
Who can get it?
Not everyone qualifies for the 30% ruling and it’s not automatically approved. The 30% scheme is designed to attract people with skills that are in short supply in the Dutch labour market, so there are some clear conditions.
Generally, you need to have been recruited while still being abroad. You need to have lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months prior to your first working day, which is why people moving from just over the border in Belgium or Germany often miss out. On top of that, your salary must meet a minimum level, which is how the scheme checks that your role counts as specialised.
One thing to remember: the ruling has to be applied for. Your employer applies to the tax authority, but you also have to sign the application. You will need to provide certain documentation as proof of address abroad. This can be a rental contract, electricity bill or registration at the municipality where you were living. Next to that a copy of the employment contract and proof that the job offer was given to you and accepted before your relocation are required. Normally your employer will receive a response from the tax office within three months whether they can apply the 30% ruling.
How much is it, and for how long?
For now, the scheme still lets up to 30% of your salary be paid tax-free, though it’s worth knowing it will be scaled back in the coming years, in 2027 to 27%. The allowance will be lower, if you earn just above the annual income requirement.
The benefit runs for a maximum of five years, and any time you’ve previously spent living or working in the Netherlands gets knocked off that period. The income level is indexed annually. Since the figures move around, the safest thing is to check the current rates with the Belastingdienst.
The salary threshold
To qualify, your taxable salary needs to hit a minimum level, and there’s a separate, lower threshold for younger applicants under 30 years who hold a qualifying university master’s degree. These amounts are updated every year, so again, it’s best to check the current threshold straight from the Belastingdienst before you count on anything. The income requirement in 2027 will be about 50 K EUR annually and for younger applicants with a university master, around 38 K EUR. The figures indicated are the minimum amounts that are taxable, so if eligible for the 30% ruling, only what you earn above can be paid our as a tax free allowance. You can never receive more than 30% of your total annual salary as a tax free allowance.
Is it still worth it?
With the rate dropping to 27%, some people wonder whether the application is still worth it. Sheltering a quarter of your salary from Dutch income tax, in a country with fairly high tax rates, still adds up to a difference in what lands in your account. For most people who qualify, the ruling is still one of the more generous expat tax arrangements in Europe.
The rules keep moving
The 30% ruling changes more often than almost any other part of Dutch tax, so the figures and rules do shift from year to year. Rather than rely on numbers that quickly go out of date, it’s best to check the current thresholds and rates directly at the source, and to get personal advice for anything tied to your own salary or start date.
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