As an international professional in the Netherlands, you probably already know that the 30% ruling offers significant tax advantages. But did you know that you can combine this ruling with other tax benefits to further optimize your fiscal position? Strategically combining different tax advantages can substantially increase your net income, provided you know which combinations are permitted and how to apply them correctly. In this article, you’ll discover exactly which tax benefits you can utilize alongside the 30% ruling and how to cleverly combine them for maximum fiscal advantage.
Which Tax Benefits Can You Utilize Alongside the 30% Ruling?
Besides the 30% ruling, the Dutch tax system offers various other fiscal advantages that are also accessible to international employees. The main tax benefits you can combine with the 30% ruling are:
The general tax credit is a standard tax reduction that virtually everyone in the Netherlands receives. This credit is automatically applied to your tax return and amounts to a maximum of €3,362 in 2025 for incomes up to €23,972. Above this amount, the credit gradually phases out.
The employment tax credit is an additional reduction specifically for employees. This credit is intended to compensate for the costs of having work and amounts to a maximum of €5,052 in 2025. Like the general tax credit, this is automatically processed in your payroll taxes.
For international employees, there are also specific deductible items that are compatible with the 30% ruling:
- Study costs for work-related education
- Commuting costs above the threshold
- Union membership fees
- Costs for disability insurance
Additionally, you can benefit from mortgage interest deduction if you buy a home in the Netherlands, even during your 30% ruling period. This can yield a substantial advantage, especially in the first years of your mortgage.
Combination Possibilities and Legal Restrictions
Combining the 30% ruling with other tax benefits is largely possible, but there are important legal restrictions you must consider. Dutch tax legislation distinguishes between different types of benefits and their mutual compatibility.
The general tax credit and employment tax credit are fully compatible with the 30% ruling. These credits are calculated on your taxable income after applying the 30% ruling. This means you can claim the full amount of both credits, regardless of your 30% ruling status.
An important restriction concerns the partial foreign tax liability that was available until 2025. From January 1, 2025, this option has been abolished, meaning all 30% ruling holders are now fully tax liable for box 2 and box 3 income.
| Tax Benefit | Compatibility with 30% Ruling | Special Considerations |
|---|---|---|
| General tax credit | Fully compatible | Automatic application |
| Employment tax credit | Fully compatible | Automatic application |
| Mortgage interest deduction | Fully compatible | Applies to Dutch mortgages |
| Study cost deduction | Limited compatibility | Only work-related studies |
| Partial foreign tax liability | No longer possible | Abolished as of January 1, 2025 |
For specific deductible items, additional conditions often apply. Study costs, for example, are only deductible if they are directly related to your work or if they improve your labor market position. Travel costs for commuting are only deductible for the amount that exceeds the legal threshold.
Practical Step-by-Step Plan for Optimal Tax Planning
For optimal tax planning, it’s essential to work systematically. Here’s a concrete guide to strategically combine tax benefits:
Start by inventorying your current situation. Check if your 30% ruling is still valid and how many years you can still use it. Since 2019, there’s a maximum period of five years, so timing is crucial for your long-term planning.
Gather all necessary documentation for your tax return:
- Annual statement from your employer with 30% ruling mention
- Proof of deductible costs (study costs, travel costs, union fees)
- Mortgage interest overview from your bank
- Overviews of box 2 and box 3 income
Plan the timing of major expenses strategically. If you want to pursue studies or buy a house, consider whether it’s more advantageous to do this during your 30% ruling period or afterward. For home purchases, it may be beneficial to wait until after your 30% ruling period, as you might be able to claim more mortgage interest deduction then.
Consider a Global Mobility compliance audit to evaluate your complete fiscal position. A professional assessment can uncover undiscovered optimization opportunities and ensure you maximize all available benefits.
Submit your tax return on time, preferably before April 1 if you file yourself. This gives you more time to answer any questions from the Tax Administration and prevents penalties.
Common Mistakes When Combining Tax Benefits
When combining the 30% ruling with other tax benefits, international employees regularly make costly mistakes. Recognizing these pitfalls can save you much money and frustration.
A common mistake is incorrectly claiming foreign tax credit. Many 30% ruling holders think they can deduct taxes paid in their home country from their Dutch tax liability. However, this is not permitted when using the 30% ruling, because this ruling is already intended as compensation for extraterritorial costs.
Another frequent error concerns the calculation of mortgage interest deduction. Some international employees assume that their lower taxable income (due to the 30% ruling) limits their mortgage possibilities. In reality, mortgage providers look at your gross income before applying the 30% ruling.
Timing errors are also problematic. Many expats realize too late that certain deductible items can only be claimed in the year of payment. Study costs you pay in December cannot be claimed in the following tax year.
A critical mistake is not keeping track of your 30% ruling’s end date. If your ruling expires and you’re not prepared for it, this can lead to a sudden increase in your tax burden. Start planning your fiscal strategy for the period afterward at least one year before your ruling expires.
Combining the 30% ruling with other Dutch tax benefits offers significant opportunities for fiscal optimization. By making the right combinations and avoiding common mistakes, you can maximize your net income during your time as an international professional in the Netherlands. Remember that tax legislation is complex and changes regularly, so always consider professional advice for your specific situation.
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