As an international professional moving to the Netherlands, the 30% ruling offers an attractive tax advantage. But what happens to your entitlement to Dutch benefits when you use this facility? This question concerns many expats, as the combination of the 30% ruling and the Dutch benefit system can be complex. It is crucial to understand how these two systems interact with each other, so you don’t encounter unpleasant surprises with your annual tax return or benefit application.
In this article, we explain exactly how the 30% ruling works, which benefits are affected, how the calculations work, and what practical challenges you can expect. With this knowledge, you can be better prepared for your financial planning in the Netherlands.
What exactly is the 30% ruling?
The 30% ruling expat scheme, also called the expat scheme, is a tax facility that the Dutch government has introduced to attract highly educated international employees. This scheme allows employers to pay up to 30% of an employee’s gross salary tax-free as compensation for extraterritorial costs.
These costs include, for example:
- Moving costs and relocation expenses
- Higher housing costs in the Netherlands
- Travel costs to the home country
- Costs for Dutch language lessons
- Application costs for permits and documents
To qualify for the 30% ruling, you must meet specific conditions. You must possess specific expertise that is scarce in the Dutch labor market and earn a minimum salary of €46,660 in 2025 (€35,468 for employees under 30 with a master’s degree). Additionally, you must have been recruited from outside the Netherlands and have lived at least 16 months more than 150 kilometers from the Dutch border.
Since 2024, there is a maximum salary of €233,000 per year to which the 30% ruling can be applied. For salaries above this amount, the tax advantage no longer applies.
Which benefits are affected by the 30% ruling?
The Dutch benefit system includes various payments based on your income and family situation. The 30% ruling can affect your entitlement to these benefits, as the calculation is often based on your taxable income.
The main benefits that can be affected are:
Healthcare allowance
The healthcare allowance is a contribution toward the costs of your health insurance. The entitlement to healthcare allowance is calculated based on your assessment income. With the 30% ruling, your taxable income may be lower, which means you may receive more healthcare allowance.
Housing allowance
Housing allowance helps with paying your rent. The amount depends on your income, rent price, and family situation. A lower taxable income due to the 30% ruling can lead to a higher housing allowance.
Childcare allowance
This allowance reimburses part of the costs for childcare. The calculation is based on household income, where the 30% ruling can result in a higher allowance amount.
Child-related budget
The child-related budget is an income-dependent contribution for families with children. Here too, the 30% ruling can lead to a higher allowance amount due to the lower taxable income.
| Allowance | Calculation basis | Possible impact of 30% ruling |
|---|---|---|
| Healthcare allowance | Assessment income | Higher allowance amount possible |
| Housing allowance | Assessment income + rent price | Higher allowance amount possible |
| Childcare allowance | Household income | Higher allowance amount possible |
| Child-related budget | Assessment income | Higher allowance amount possible |
Calculation of benefits with the 30% ruling
The calculation of benefits with the 30% ruling requires a good understanding of how your assessment income is determined. This is the income that the Tax Authority uses for calculating benefits.
When you use the 30% ruling, your taxable income is calculated over 70% of your gross salary. This lower taxable income often forms the basis for your assessment income, which can lead to higher benefits.
Practical calculation example
Suppose you earn €60,000 gross per year and use the 30% ruling:
- Taxable income: €42,000 (70% of €60,000)
- Tax-free portion: €18,000 (30% of €60,000)
For benefit calculations, the taxable income of €42,000 is used as the basis, not the full gross salary of €60,000. This can result in:
- Higher healthcare allowance
- Possible entitlement to housing allowance (depending on rent price)
- Higher childcare allowance (if applicable)
- Higher child-related budget (if applicable)
It is important to remember that benefits are always calculated based on a preliminary estimate. At the end of the year, a final calculation takes place during the annual benefit declaration.
Common problems and solutions
International employees regularly encounter challenges when combining the 30% ruling with the Dutch benefit system. Understanding these problems and their solutions can save you a lot of headaches.
Problem 1: Unclear assessment income
Many expats don’t understand which income is used for benefit calculations. The solution is to use your taxable income (70% of your gross salary with the 30% ruling) as the starting point for benefit applications.
Problem 2: Benefit recovery
Some international employees face recoveries because their final income turns out higher than expected. This can happen when bonuses or other variable income components are not correctly included in the preliminary calculation.
Solution: Ensure an accurate estimate of your annual income and update your information promptly when changes occur in your income situation.
Problem 3: Complex family situations
International couples where one partner uses the 30% ruling and the other doesn’t can encounter complex calculations for family-related benefits.
Solution: Consult a specialist in global mobility compliance who has experience with these specific situations. A thorough audit of your global mobility processes can help identify and resolve such complexities early.
Problem 4: Changes in the 30% ruling
The 30% ruling undergoes regular changes. From 2024, for example, a maximum salary applies, and from 2027, the percentage will be reduced to 27%. These changes can impact your benefits.
Solution: Stay informed about changes in legislation and adjust your financial planning accordingly. Consider conducting an annual compliance check to ensure you’re making optimal use of all available facilities.
Navigating Dutch bureaucracy can be challenging, but with the right knowledge and preparation, you can optimally utilize the benefits of both the 30% ruling and the Dutch benefit system. By being proactive in your planning and regularly evaluating your situation, you prevent unpleasant surprises and maximize your financial advantages as an international professional in the Netherlands. For personalized advice on your specific situation, feel free to contact our expert team.
