A rejection of your expat ruling can be a significant financial setback for international employees in the Netherlands. This tax benefit, which allows you to receive a maximum of 30% of your gross salary tax-free, is not automatically granted and the Dutch Tax Authority imposes strict requirements. When your application is rejected, this does not mean that all hope is lost. There are various steps you can take to still qualify for this important tax advantage.
In this article, we will explain why applications are rejected, what follow-up actions you can take, and how you can prevent future rejections. We also explore additional tax benefits that are available for international employees in the Netherlands.
Why could the expat ruling be rejected?
The most common reason for rejection is not meeting the salary requirement. For 2026, your annual salary must be more than €48,013 (70% of the gross salary). For employees under 30 years of age with a qualifying master’s degree, a lower threshold of €36,497 applies. These amounts are adjusted annually and are the minimum income which will be taxed.
Incorrect or incomplete documentation also regularly leads to rejection. Essential documents are:
- BSN
- Signed and dated employment contract or secondment letter
- Proof of residence at a distance of more than 150 km from the Dutch border for more than 16 months of the 24 months prior the start of your Dutch employment
- Curriculum vitae with clear work experience and location
- Signed and dated addendum to your employment contract confirming the application of the expat ruling
Please note that since you must have lived at least 16 months outside a radius of 150 kilometers from the Dutch border in the 24 months prior to your first day of work. Employees from the border region (Belgium, Luxembourg, parts of Germany, France, or the United Kingdom) do (most likely) not qualify.
What steps can you take after rejection?
After your application has been rejected, you have six weeks to file a letter of objection with the Dutch tax authorities. This objection must be submitted in writing and must clearly indicate why you disagree with the decision. Use this period to thoroughly analyze your file and gather any missing documentation.
Providing additional documentation can strengthen your objection. This could include:
- Further explanation of meeting the salary norm such as a mobility budget, fixed bonus etc. (agreed upon when signing the employment contract)
- Additional proof of your residence abroad
The Dutch tax authorities will send their decision within 12 weeks after the date on the rejection letter if a letter of objection has been received. However, they could, one-sidedly, extend the deadline by an additional 6 weeks. Hence, the Dutch tax authorities are obligated to send their decision within a maximum of 18 weeks after the date on the rejection letter imposed by them.
Appeal procedure against expat ruling rejection
If your letter of objection is also rejected, you can file an appeal with the court within six weeks after the date of the formal rejection. This is a formal procedure that involves more time and costs but can be effective if you have a strong case.
For the appeal procedure, you need the following documents:
- The original rejection decision
- The decision on objection
- All relevant correspondence with the Dutch tax authorities
- Supporting documentation for your case
- A substantiated appeal letter
The costs for an appeal procedure vary, but you should account for court fees and possible attorney costs. The expected processing time is usually 6 to 12 months, depending on the complexity of your case.
Success factors for an appeal procedure include new facts or documents that were not previously submitted, procedural errors by the Dutch tax authorities, or a different interpretation of the regulations. It is advisable to seek legal assistance from specialists in tax law or global mobility.
Alternative tax benefits for international employees
For employees who hold the expat ruling, additional benefits are available, such as the ability to exchange your foreign driver’s license without theory or practical exam. International school costs for your children can also sometimes be reimbursed by your employer as a tax-free allowance.
Box 2 and Box 3 benefits were previously available for expat ruling beneficiaries, but this partial non-resident status will be abolished as of January 1, 2025 (or transitional law in case you hold the expat ruling prior to 2024 then it will be abolished January 1, 2027). International employees will then have to pay the same box 2 and 3 taxes as regular Dutch residents.
Prevention: how do you prevent rejection in future applications?
Careful preparation is essential for a successful application. Start by gathering all required documentation before submitting your application. Ensure that your employer also agrees with the application for the expat ruling.
The timing of your application is crucial. Submit your application within four months of the start of your employment to have the expat ruling granted retroactively as of the start of your employment. For applications filed after the 4-month deadline, the ruling only takes effect from the first day of the month after the application has been filed with the Dutch tax authorities.
Important preventive measures are:
- Check if your salary meets the minimum requirement for the relevant year
- Collect proof of your residence outside the Netherlands
- Ensure a detailed CV that clearly shows your expertise and locations
- Check that all documents are complete, signed and correctly filled out
A professional compliance audit of your global mobility processes can help identify and strengthen weak points in your application. This type of analysis not only evaluates your current situation but also provides strategic advice for optimizing future applications.
Professional guidance can make the difference between approval and rejection. Specialists in global mobility compliance can help you identify potential problems and optimize your application strategy. They can also help with correctly interpreting the complex regulations and advice in case exceptions could be applicable.
A rejection of the expat ruling is not the end of the world. By taking the right steps, filing a thorough objection, and preparing for future applications, you can significantly increase your chances. The most important thing is to act proactively and seek professional help when necessary. For personalized assistance with your specific situation, contact our expert team.
