The expat ruling (formerly: 30% ruling) offers international professionals an attractive tax benefit when they move to the Netherlands for work. For many expats, however, the minimum income is a crucial threshold that determines whether they qualify for this tax benefit. Understanding the exact income threshold, calculation method and exceptions is essential for a successful application.
In 2026, changes have been implemented in the expat ruling, including adjustments to the minimum income and maximum salary cap. These changes have direct consequences for international employees who are considering taking advantage of this Dutch tax benefit.
What is the minimum income for the expat ruling in 2026?
The minimum income for the expat ruling (30% ruling) 2026 has been set at €48,013 gross per year. This amount applies to the salary after application of the 30% ruling, which means that your actual gross salary must be higher to meet this requirement.
For employees under 30 years of age with a master’s degree, a lower threshold of €36,497 gross per year applies. This exception is intended to attract young highly educated professionals to the Dutch labor market.
When we convert these amounts to the actual gross salary before application of the expat ruling, this means:
- General threshold: €68,590 gross salary per year
- Young professionals with master’s degree: €52,139 gross salary per year
The Dutch Tax Administration uses these thresholds to determine whether an international employee possesses the specific expertise that is scarce in the Dutch labor market. This income requirement forms an important part of the assessment for obtaining the expat ruling.
Conditions and exceptions for minimum income
In addition to the salary standard, international employees must meet various other conditions. These include both personal and work-related criteria.
General conditions
The employee must be employed by a Dutch employer who pays payroll taxes to the Dutch Tax Administration (withholding agent). Additionally, a written agreement between the employee and employer is required in which both parties confirm that the expat ruling applies.
A crucial condition is that the employee must be recruited from abroad. This means that the employee must have lived more than 150 kilometers from the Dutch border for at least 16 of the 24 months prior to the first working day in the Netherlands.
Important exceptions
Scientific researchers enjoy a special status within the expat ruling. Those who conduct research at recognized research institutions, such as Dutch universities, may qualify for the ruling regardless of their salary.
Doctors in specialist training can also make use of the ruling without meeting the minimum salary requirement. These exceptions recognize the value of specific expertise in sectors where the Netherlands has a shortage.
| Category | Minimum income 2026 | Special features |
|---|---|---|
| General | €48,013 | Standard threshold |
| Under 30 with master’s degree | €36,497 | Dutch or equivalent degree |
| Scientific researcher | No minimum | At recognized research institution |
| Doctor in training | No minimum | Specialist training |
How is the minimum income calculated?
The calculation of the salary standard for the expat ruling follows a specific methodology that is applied by the Dutch Tax Administration. It is important to understand which income components do and do not count.
Income components that count
The gross annual salary forms the basis for the calculation. This also includes holiday pay, bonuses, secondary employment conditions and the value of a company car. These components are considered part of the total employment compensation.
The calculation works as follows: the total gross salary is reduced by 30% (the tax-free part), and the remaining amount of 70% must meet the minimum threshold.
Excluded income components
Certain income components do not count for the expat ruling. For instance, pension contributions sometimes and severance payments always fall outside the ruling.
From 2026, a maximum salary of €262,000 per year applies. Income above this amount does not qualify for the tax benefit of the expat ruling.
What if you fall below the minimum income?
When the salary falls below the salary standard, the employee loses the expat ruling with retroactive effect to January 1 of the year in which the employee first falls below the salary standard. This has consequences for the employee’s net income.
Practical consequences
Without the expat ruling, an employee pays Dutch wage/income tax on the entire salary. This can result in a considerably higher tax burden, especially for international employees in higher income brackets.
Possible alternatives
If the employee’s current salary is just below the threshold, an employee can negotiate with their employer for a salary increase or additional employment conditions that bring the total compensation above the minimum threshold. This is to prevent loss of the ruling.
Navigating through the complexity of the expat ruling requires thorough knowledge of Dutch tax legislation. Through proper preparation and guidance, international professionals can optimally benefit from this tax advantage and ensure their transition to the Netherlands runs smoothly. For personal advice, you can contact our specialists.
Do you have additional questions or need help? We are happy to assist you. Contact us without obligation via service@eastwing.nl.
