The combination of remote work and the Dutch 30% ruling increasingly raises questions among international employees. While working from home has become commonplace after the pandemic, the strict physical presence requirements of the 30% ruling create new challenges. As an international professional who benefits from these tax advantages, it is crucial to understand how remote work can affect your status. In this article, we discuss the key compliance aspects, risks, and practical tips to secure your 30% ruling during remote work.
What exactly is the 30% ruling?
The 30% ruling is a Dutch tax facility specifically designed to attract highly educated foreign employees. This regulation allows international employees to receive up to 30% of their gross salary tax-free, which yields significant savings on Dutch taxes.
To qualify for the 30% ruling tax benefit, you must meet specific conditions:
- You are employed by a Dutch employer
- You possess specific expertise that is scarce in the Dutch labor market
- Your salary amounts to at least €46,660 per year (2025), or €35,468 for employees under 30 with a master’s degree
- You were recruited from abroad and lived more than 150 kilometers from the Dutch border
- You lived outside the Netherlands for at least 16 months in the 24 months preceding your first working day
It is important to know that from 2024, the regulation is being gradually phased out. New applicants from 2024 receive a declining percentage: 30% for the first 20 months, 20% for the next 20 months, and 10% for the last 20 months. There is also a maximum salary of €233,000 to which the regulation can be applied.
Remote work and physical presence requirements
The 30% ruling requires that you actually work and live in the Netherlands. This brings specific challenges for remote work. Although Dutch tax legislation does not explicitly prohibit working temporarily from abroad, prolonged periods of remote work outside the Netherlands can jeopardize your status.
The core question revolves around the concept of “actual workplace.” If you structurally work from another country, the Tax Authority may argue that your workplace is no longer located in the Netherlands. This can have consequences for both your 30% ruling and your Dutch tax liability.
| Work location | Risk for 30% ruling | Recommended maximum |
|---|---|---|
| Working from home in the Netherlands | No risk | Unlimited |
| Incidental abroad | Low risk | 2-3 weeks per year |
| Regular abroad | Increased risk | Max 30 days per year |
| Structural abroad | High risk | Not recommended |
For global mobility compliance, it is essential to accurately track where and when you work. This applies not only to the 30% ruling but also to other tax obligations that may arise in the country where you work remotely.
What risks does working from home entail?
Remote work from abroad brings various compliance risks that extend beyond just the 30% ruling. These risks can have significant financial and legal consequences for both you and your employer.
Tax obligations in other countries
When you work from another country, you may become tax liable there. Many countries apply a rule whereby you acquire tax liability after just a few days of work. This can lead to double taxation and complex filing obligations.
Work permit and social security
Remote work from certain countries may mean you need a work permit there, even though you work for a Dutch employer. Additionally, changes may occur in your social security status, which has consequences for benefits and pension accrual.
Risks for the employer
Your employer also faces risks when employees work structurally from abroad:
- Possible obligation to establish a permanent establishment
- Local payroll tax and social security contributions
- Compliance with local labor law provisions
- Liability for incorrect tax returns
These risks often make it necessary for employers to apply strict rules for remote work from abroad, which can limit your flexibility.
Practical tips for remote work compliance
To secure your 30% ruling status during remote work, a proactive approach is essential. These practical tips help you remain compliant and prevent unexpected problems.
Documentation and administration
Keep accurate records of where and when you work. Use a digital logbook in which you register daily:
- Work location (address or city/country)
- Number of hours worked
- Nature of the work activities
- Any travel dates
This documentation is crucial for any questions from the Tax Authority or during a global mobility compliance audit.
Communication with your employer
Always discuss your remote work plans in advance with your employer. Many companies have specific policy rules for international employees with a 30% ruling. Ensure that you:
- Receive written permission for remote work from abroad
- Make agreements about the maximum duration
- Report regularly about your work location
- Stay informed about changes in company policy
Seeking professional advice
When in doubt about the consequences of remote work for your 30% ruling, it is wise to seek professional advice. A specialized advisor can help you develop a compliant remote work strategy and guide you through any changes in your situation.
Remote work and the 30% ruling can work well together, provided you take the right precautions. By carefully documenting your work locations, communicating transparently with your employer, and seeking professional advice in complex situations, you can enjoy the flexibility of remote work without jeopardizing your tax benefits. Remember that the regulations are complex and change regularly, so stay informed about developments and do not hesitate to seek professional help when navigating these challenges.
