As an international professional considering working in the Netherlands, you have probably already heard of the 30% ruling. This unique Dutch tax facility can offer a significant financial advantage, but many are uncertain about the exact conditions. Understanding who exactly qualifies for the 30 percent ruling Netherlands is crucial for your financial planning as an expat. In this article, we cover all the important criteria, from scarce knowledge to minimum income, so you know whether you can benefit from this tax advantage.
What exactly is the 30% ruling?
The 30% ruling, also known as the expat ruling, is a tax benefit that the Dutch government has introduced to attract international professionals with specific expertise. This ruling allows employers to pay up to 30% of your gross salary tax-free as compensation for extraterritorial costs.
In practice, this means that your effective tax burden can decrease significantly. Instead of paying tax on your full salary, only 70% of your gross income is considered taxable. The remaining 30% is intended as compensation for the extra costs you incur as an international employee.
These costs include, for example:
- Moving costs and relocation expenses
- Travel costs to your home country
- Higher housing costs in the Netherlands
- Costs for Dutch language courses
- Application costs for permits and documents
For employers, the ruling offers the advantage that they can attract international talent without drastically increasing the gross salary. For employees, this results in a higher net income, which makes the Netherlands more attractive as a work location.
What conditions must you fulfill?
To qualify for the 30% ruling conditions, you must meet various criteria. The Tax Authority applies strict rules that must all be fulfilled.
The main conditions are:
Employment relationship in the Netherlands
You must be employed by a Dutch employer who pays payroll tax for you. Self-employed individuals do not qualify, unless they work through their own BV (private limited company).
Distance requirement
You must have lived at least 16 of the 24 months prior to your first working day in the Netherlands at more than 150 kilometers from the Dutch border. This distance is calculated as the crow flies. Living in Belgium, Luxembourg, or certain parts of Germany, France, or the United Kingdom excludes you.
Recruitment from abroad
You must have been specifically recruited or seconded from abroad. This means that your employer actively sought and attracted you because of your specific expertise.
Written agreement
Both you and your employer must agree in writing to the application of the 30% ruling. This must be explicitly recorded in your employment contract or an accompanying agreement.
Additionally, your employer must provide a statement confirming that you possess scarce knowledge and that no comparable expertise was available in the Dutch labor market.
Scarce knowledge: what counts and what doesn’t?
The concept of scarce knowledge is crucial for the 30% ruling, but can be confusing. The Tax Authority assesses this mainly based on your salary, but there are also other factors.
Salary thresholds as an indicator
For 2025, the following minimum income thresholds apply (calculated over 70% of your gross salary):
- General: €46,660 per year
- Under 30 with master’s degree: €35,468 per year
These amounts correspond to gross salaries of approximately €66,657 and €50,669 respectively before the 30% ruling is applied.
Exceptions for researchers
Scientific researchers at recognized Dutch research institutions and doctors in specialist training always qualify, regardless of their salary. No minimum wage requirements apply to them.
Proof of scarcity
Your employer must be able to demonstrate that:
- The position was vacant for a certain period
- Active searches were conducted for Dutch candidates
- The number of applicants and the recruitment period are documented
- Your specific expertise was not available locally
This means that not only your salary, but also the unique nature of your expertise and your employer’s recruitment efforts are assessed.
Minimum income and other financial requirements
The minimum income 30% forms a concrete threshold that you must exceed. For 2025, the precise amounts are set based on 70% of your gross salary, because the ruling assumes that 30% is paid out tax-free.
| Year | Minimum income (general) | Minimum income (<30 with master’s) |
|---|---|---|
| 2025 | €46,660 | €35,468 |
| 2024 | €46,107 | €35,048 |
| 2023 | €41,954 | €31,891 |
Salary maximum
Since 2024, there is also a maximum. The 30% ruling only applies to salaries up to €233,000 per year. Income above this amount does not qualify for the tax-free allowance. For those who were already using the ruling before 2024, this maximum only applies from 2026.
What counts and what doesn’t?
When calculating your income for the 30% ruling, the following are included:
- Base salary
- Bonuses and profit-sharing
- Holiday pay
- Secondary employment conditions such as company car
Usually not counted are:
- Pension premiums
- Severance payments
- Some specific allowances
Common mistakes when applying
The 30% ruling application process has various pitfalls that can lead to rejection. Knowledge of these common mistakes helps you increase the chance of approval.
Timing problems
One of the most common mistakes is applying too late. Submit your application within four months of your first working day to be able to benefit retroactively from that date. After four months, the ruling only applies from the first day of the month after approval.
Incomplete documentation
Many applications are rejected due to incomplete documentation. Make sure you have:
- Valid identity document
- BSN number
- Employment contract with written agreement about the 30% ruling
- Proof of foreign residence prior to your Dutch job
- Detailed CV with work experience and education details
- Employer statement about scarce knowledge and recruitment efforts
Distance requirement calculated incorrectly
Many applicants make mistakes when calculating the 150-kilometer distance requirement. This is measured as the crow flies, not by road. Check this carefully and document your residential history thoroughly.
Insufficient proof of scarcity
Employers sometimes fail to adequately document why your expertise is scarce. A good global mobility compliance audit can help in correctly preparing this documentation and identifying possible gaps in your application.
By avoiding these common mistakes and carefully preparing all documentation, you significantly increase the chance of a successful application for the 30% ruling. The investment in professional guidance during this process can ultimately save a lot of time and frustration. If you need expert assistance with your application, feel free to contact us for personalized support.
