As an international professional considering working in the Netherlands, you have probably already come across the term 30% ruling. This unique tax facility can make a significant difference to your net income and is one of the most important considerations when planning your career in the Netherlands. The 30% ruling, also known as the expat ruling, offers international employees the opportunity to receive up to 30% of their salary tax-free.
For knowledge migrants and highly educated expats, this ruling often forms a crucial factor in the decision to move to the Netherlands. Understanding the conditions, the application process and the financial benefits is essential for making optimal use of this facility. In this article, we explain step by step how the 30% ruling works, which conditions you must meet and how you can submit a successful application.
What exactly is the 30% ruling?
The 30% ruling is a Dutch tax facility that has been specially designed for international employees who come from abroad to work in the Netherlands. This ruling enables employers to pay up to 30% of their international employees’ gross salary tax-free as compensation for so-called extraterritorial costs.
The historical background of this ruling lies in the Dutch effort to attract international talent and strengthen the country’s competitive position. By compensating for the higher cost of living that international employees experience when moving to the Netherlands, such as double housing costs, removal costs and other relocation-related expenses, the Netherlands aims to remain an attractive destination for highly educated professionals.
Within the Dutch tax system, the 30% ruling functions as an exception to normal taxation. The tax-free part of the salary is considered as a cost allowance for the extra expenses associated with temporary residence in the Netherlands. This approach recognizes that international employees often face double costs and other financial burdens that local employees do not experience.
Conditions for the 30% ruling
To qualify for the 30% ruling, you must meet a number of specific conditions. These criteria are strict and are carefully checked by the Tax Administration with every application.
Salary threshold and specific expertise
You must earn a minimum gross salary that demonstrates that you possess scarce expertise. For 2025, this threshold amounts to €46,660 per year. For employees younger than 30 years with a master’s degree, a lower threshold of €35,468 per year applies. These amounts are adjusted annually and are exclusive of the 30% facility.
An important exception applies to scientific researchers who work at recognized research institutions, such as Dutch universities. They can always use the 30% ruling, regardless of their salary.
Distance requirement and recruitment
The distance requirement is one of the most complex conditions. You must have lived for at least 16 of the 24 months prior to your first working day in the Netherlands at more than 150 kilometers as the crow flies from the Dutch border. This means that you may not have lived in Belgium, Luxembourg and parts of Germany, France or the United Kingdom.
In addition, you must have been recruited from abroad. Your employer must demonstrate that your specific expertise is scarce in the Dutch labor market and that they have failed to find a comparable candidate locally.
Employer obligations
Your employer plays a crucial role in the application process. They must provide a written statement confirming that your skills are scarce and that they have failed to find a comparable employee in the local market. A written agreement must also be drawn up in which both parties confirm that they are aware of the consequences of applying the 30% ruling.
Application procedure and required documents
The application process for the 30% ruling requires careful preparation and gathering of the correct documentation. The application is usually submitted by your employer or you submit an application together via the Tax Administration’s website.
Required documents
For a successful application, you need the following documents:
- Valid identity document (not a driving license)
- BSN number
- Employment contract or secondment letter
- Work permit (if applicable)
- Company details and payroll tax number of your employer
- Proof of residence in another country prior to your appointment
- Curriculum vitae that clearly shows your age, education, work experience and employment history
- Written agreement in which both parties confirm that they are aware of the consequences
- Written statement from your employer about the scarcity of your skills
Timelines and processing procedure
The Tax Administration has a processing time of one to six months, depending on the complexity of your file. It is crucial to submit your application on time. If you submit an application within four months of the start of your employment, the ruling can be applied retrospectively from your first working day.
If your application is rejected, you can submit an objection within six weeks. If this objection is also rejected, the path to appeal to the court is open.
Financial benefits and calculation
The financial benefits of the 30% ruling can be considerable, especially for employees with higher salaries. The tax benefit is calculated by exempting 30% of your gross salary from payroll and income tax.
| Gross salary | Tax-free part (30%) | Taxable part (70%) | Estimated annual saving |
|---|---|---|---|
| €60,000 | €18,000 | €42,000 | €7,200 |
| €80,000 | €24,000 | €56,000 | €9,600 |
| €100,000 | €30,000 | €70,000 | €12,000 |
It is important to note that since 2024, a maximum salary of €233,000 per year applies to which the 30% ruling can be applied. Income above this amount does not qualify for the tax deduction. This means that the maximum tax-free allowance amounts to €69,900 per year.
Comparison with regular tax rates
For international employees without the 30% ruling, the standard Dutch tax rates apply. In 2025, the rate in the first bracket amounts to 36.97% and in the second bracket 49.50%. The 30% ruling can therefore result in a significant reduction of your tax burden, especially in the higher income brackets.
Common mistakes and challenges
When applying for the 30% ruling, the same problems regularly occur that can lead to rejection or delay. Recognizing and avoiding these common mistakes significantly increases your chances of a successful application.
Documentation and compliance risks
One of the most common causes of rejection is incomplete or incorrect documentation. Many applicants underestimate the importance of demonstrating the distance requirement. Ensure that you have sufficient proof of your place of residence in the 24 months prior to your Dutch employment.
Another common mistake is not correctly completing the CV. This document must clearly demonstrate your employment history, education and expertise. Ambiguities or gaps can lead to questions or rejection.
Timing and procedural challenges
Late application is a costly mistake. Many international employees only discover after months that they may qualify for the 30% ruling. Although it is still possible to submit an application years later, the financial benefit of the first months is lost if you do not submit an application within four months of the start of your employment.
When changing employers, it is crucial to find a new job within three months and submit a new application within four months to maintain continuity of the ruling.
Strategic considerations
For an optimal approach to global mobility compliance, it is advisable to seek professional advice early. A thorough evaluation of your situation and drawing up a strategic approach can prevent many problems. This includes not only the initial application, but also monitoring changing legislation and planning for future career steps.
The 30% ruling remains a valuable instrument for international professionals in the Netherlands, but requires careful planning and compliance with all conditions. By preparing well and engaging the right expertise, you can make optimal use of this unique tax facility and make a successful start to your career in the Netherlands. For personalized guidance on your specific situation, contact our expert team to discuss your options.
