The 30% ruling will undergo significant changes in 2025 that will directly affect international employees and HR departments. For expats moving to the Netherlands or already benefiting from this Dutch tax scheme, these changes will have a tangible impact on their net income and tax position. The adjustments to the expat ruling require timely action to ensure compliance and to avoid unexpected financial consequences.
The changes to the 30% ruling, effective from 1 January 2025, apply to both new applications and existing rulings. International employees in the Netherlands will need to prepare for new salary thresholds and the loss of certain tax benefits. A thorough evaluation of your current global mobility processes will therefore be essential to fully understand the impact of these changes.
What exactly changes in 2025?
The most important change in 2025 is the abolition of the partial non-resident taxpayer status for box 2 and box 3. Until 2025, holders of the 30% ruling could opt for a favorable tax position, paying less tax on assets and shares. This option will be completely abolished as of 1 January 2025 for employees who were granted the 30% ruling for the first time on or after 1 January 2024.
In addition, the salary thresholds have been adjusted. The minimum annual salary for the 30% ruling increases to €46,660 (after applying the 30% exemption). For highly educated employees under 30 with a master’s degree, the threshold is €35,468. These amounts represent an increase compared to 2024.
The maximum salary over which the 30% ruling can be applied is capped at €246,000 per year (2025). For employees who have been using the scheme since 2022, this cap will only apply from 1 January 2026. Note that this maximum is linked to the WNT standard and is determined annually.
Salary thresholds 2025
| Category | Minimum Salary (70% base) | Gross Salary (100% base) |
|---|---|---|
| General | €46,660 | €66,657 |
| Under 30 with master’s degree | €35,468 | €50,669 |
| Scientific researcher | No threshold | No threshold |
Impact on existing 30% rulings
Holders of an existing 30% ruling may be directly affected by the abolition of the partial non-resident taxpayer status. This means that from 2025 onwards, they must pay full Dutch tax on their box 2 income (substantial interest) and box 3 income (savings and investments), just like other Dutch residents. In short, this applies to employees who were first granted the 30% ruling in 2024.
For employees who have been using the scheme since 2022, a transitional arrangement applies regarding the salary cap. They may continue to benefit from the 30% exemption on their full salary until 1 January 2026, even if it exceeds €246,000. For all other employees, the cap will already apply in 2025.
The maximum duration of five years remains unchanged for rulings granted after 1 January 2019.
Action points for current holders
- Recalculate your tax position for box 2 and box 3
- Consider restructuring your assets
- Check whether you qualify for transitional measures and their impact
- Assess the effect of the new (maximum) thresholds on your net income
Practical steps for employers and expats
Employers will need to update their payroll systems to implement the new rules correctly. This includes checking and updating the applied percentage of the 30% ruling in payroll and ensuring that employees receive the correct net income from January 2025 onwards.
For HR departments, it is crucial to proactively communicate with international employees about the impact of these changes. A timely global mobility compliance audit can help identify all affected employees and ensure the necessary adjustments are made.
Expats planning to relocate to the Netherlands should align their financial planning with the new reality. The 30% ruling remains attractive, but the removal of the box 2 and box 3 benefits significantly reduces the overall tax advantage.
Timeline for implementation
- By 31 December 2024: Inform all affected employees of the changes
- 1 January 2025: New rules enter into effect
- January 2025: Update payroll systems for correct tax calculation
- March 2025: Evaluate impact on employee satisfaction and retention
The 2025 changes to the 30% ruling demand careful planning and timely action by both employers and international employees. By taking the necessary steps now, you can ensure continued compliance and safeguard international talent. For tailored advice on your specific situation, please contact our specialists. The Dutch expat tax scheme remains valuable but requires a revised approach in light of these important changes.
