As an international professional moving to the Netherlands, understanding the 30% ruling is crucial for your financial planning. This tax facility can save you thousands of euros annually, but only if you know how to calculate the benefits correctly. In this article, you will learn step by step how to calculate your exact tax savings and which pitfalls to avoid.
The 30% ruling is one of the most attractive aspects of working in the Netherlands for international employees. Through proper calculation, you can maximize your benefits from this expat scheme and significantly increase your net income.
What Exactly Is the 30% Ruling?
The 30% ruling, officially known as the Expat Scheme, is a tax facility that the Netherlands offers to highly skilled international employees. This scheme enables employers to pay up to 30% of your salary tax-free as compensation for extraterritorial costs.
To qualify for the 30% ruling, you must meet specific conditions. You must have been recruited from abroad and possess scarce expertise that is barely available in the Dutch labor market. Additionally, there is a minimum salary requirement of €46,660 for 2025, or €35,468 if you are younger than 30 years old and hold a master’s degree.
An important condition is that you must have lived at least 16 months in the 24 months preceding your first working day in the Netherlands at more than 150 kilometers from the Dutch border. This means you cannot have lived in Belgium, Luxembourg, or parts of Germany, France, or the United Kingdom.
Since 2024, there is a maximum salary of €233,000 per year to which the 30% ruling can be applied. For incomes above this amount, no tax-free compensation is possible.
How Do You Calculate Your Tax Savings?
Calculating your tax benefits under the 30% ruling is relatively straightforward, but requires attention to detail. The basic formula is as follows:
Tax-free amount = Gross salary × 30%
Suppose you have a gross salary of €70,000 per year. Then your tax-free compensation is €21,000 (€70,000 × 0.30). This means you only pay tax on €49,000 instead of the full amount.
To calculate your actual savings, you must account for the Dutch tax brackets. In 2025, you pay a rate of 36.97% on the first €38,441 and 49.50% on the excess.
| Tax Bracket 2025 | Income | Rate |
|---|---|---|
| Bracket 1 | €0 – €38,441 | 36.97% |
| Bracket 2 | €38,441 – €76,817 | 49.50% |
| Bracket 3 | From €76,817 | 49.50% |
Note: since 2025, the maximum tax-free amount is €73,800 per year. This means that with a salary of €246,000 or higher, you achieve the maximum benefit.
Step-by-Step Calculation
For an accurate insight into your tax savings, follow these steps:
- Determine your gross salary per year
- Calculate 30% of this amount (maximum €73,800)
- Subtract this tax-free amount from your gross salary
- Calculate the tax on the remaining amount
- Compare this with the tax on your full gross salary
Practical Examples of Tax Benefits
To illustrate the real impact of the 30% ruling, we examine different salary levels and their tax savings.
Example 1: Salary €60,000
With a gross salary of €60,000 per year, your tax-free compensation is €18,000. Your taxable income then becomes €42,000 instead of €60,000.
Without the 30% ruling, you pay approximately €19,160 in tax. With the ruling, you pay approximately €12,630 in tax on €42,000. Your annual savings is approximately €6,530.
Example 2: Salary €80,000
With a gross salary of €80,000, you receive €24,000 tax-free. Your taxable income becomes €56,000.
Without the ruling, you would pay approximately €27,940 in tax. With the 30% ruling, you pay approximately €16,070. This yields savings of approximately €11,870 per year.
Example 3: Salary €120,000
With a €120,000 gross salary, you receive €36,000 tax-free, making your taxable income €84,000.
The tax savings in this case is approximately €17,820 per year, which represents a significant advantage for your net income.
These examples show that the absolute savings increase with your salary, although the percentage of your total income remains relatively stable.
Common Calculation Mistakes
When calculating the tax benefits of the 30% ruling, many international employees make crucial errors that can affect their actual savings.
A common mistake is forgetting the maximum ceiling. Since 2024, there is a maximum of €233,000 per year to which the 30% ruling can be applied. If you earn more, you cannot apply the ruling to the full amount.
Additionally, many people forget that certain income components do not fall under the ruling. Pension accrual, for example, is calculated on your full gross salary, not on the reduced amount. This can have consequences for your future pension benefits.
Another common error is not correctly applying the gross-to-net calculation. Many people think that 30% of their salary is directly their net benefit, but this is incorrect. The tax-free amount ensures you pay less tax, but it is not the same as 30% extra net salary.
The timing of application is also important. If you submit the application within four months of starting your Dutch job, the ruling can have retroactive effect. If you apply later, the ruling only takes effect from the first day of the month after approval.
Finally, it is often forgotten that unemployment and disability benefits are calculated based on your taxable salary, not your gross salary. This may mean that your benefit is lower than expected.
Maximize Your Benefits with Professional Advice
To get the maximum benefit from the 30% ruling, professional tax advice is invaluable. A specialist can help you correctly calculate your benefits and avoid costly mistakes.
Professional advice is especially important in complex situations, such as changing employers, starting your own business, or having income from multiple sources. An advisor can also help optimize your total tax position by utilizing other facilities and deductions.
When choosing tax advice, it is essential to work with specialists who have experience with international tax matters and Dutch legislation. They can help you not only with the calculation, but also with the proper application and compliance with all conditions.
A good advisor will also conduct a Global Mobility Compliance Audit to ensure that all your international employee processes are properly set up. This includes not only the 30% ruling, but also other aspects such as social security, pension accrual, and compliance with Dutch legislation.
Additionally, they can help you plan for the future. The 30% ruling applies for a maximum of five years for new applications, so it is important to think ahead and align your financial planning accordingly.
Correctly calculating the tax benefits of the 30% ruling requires knowledge of Dutch tax legislation and attention to detail. By making the right calculation and obtaining professional advice, you can ensure that you maximize your benefits from this valuable expat scheme. Remember that every situation is unique and that personal advice always provides the best guarantee for optimizing your tax benefits. For personalized guidance on your specific situation, feel free to contact our tax specialists.
