The 30% ruling offers international employees in the Netherlands an attractive tax advantage, but also brings specific obligations when it comes to tax returns. For expats who use this ruling, it is crucial to understand when you are or are not required to file taxes, how to do this correctly, and which pitfalls you can avoid.
As an international professional who benefits from the 30 percent ruling, you navigate through a complex landscape of Dutch tax rules. This guide helps you understand what filing obligations you have, how to correctly file taxes, and when it is wise to seek professional help with your return.
What Exactly Is the 30% Ruling?
The 30% ruling, officially known as the expat ruling, is a tax benefit that the Dutch government offers to highly educated international employees. Under this ruling, a maximum of 30% of your gross salary is exempt from Dutch wage tax and premiums.
The ruling is intended as compensation for extraterritorial costs that expats incur when relocating to the Netherlands. These costs include, among others:
- Application costs for residence permits and visas
- Higher housing costs in the Netherlands
- Travel costs to the home country
- Costs for Dutch language lessons
- Temporary hotel costs during relocation
To qualify for the 30% ruling, you must meet specific conditions. You must possess scarce expertise that is not or hardly available in the Dutch labor market. For 2025, the minimum annual salary is 46,660 euros (after application of the 30% ruling). For employees younger than 30 years with a master’s degree, a lower threshold amount of 35,468 euros applies.
Additionally, you must have been recruited from abroad and must have lived at least 16 months of the 24 months prior to your first working day in the Netherlands at more than 150 kilometers distance from the Dutch border.
What Filing Obligations Do You Have with the 30% Ruling?
Whether you are required to file a tax return depends on various factors, even when you use the 30% ruling. The Dutch tax authorities apply specific threshold amounts and situations in which filing is mandatory.
You are required to file a return if your total income from work and home (box 1) exceeds the tax-free allowance. For 2024, this limit is approximately 22,660 euros for single persons. Because the 30% ruling only applies to the taxable portion of your salary, it may happen that you remain below this threshold.
Specific situations in which filing is always mandatory, even with the 30% ruling:
- You have income from assets (box 3) above the exemption
- You have a substantial interest in a business (box 2)
- You have income from multiple sources
- You want to use deductions
- You have foreign income that must be reported
Many international employees choose to file voluntarily, even when this is not required. This can be advantageous if you are entitled to certain deductions or if you have paid too much tax.
How Do You File Taxes with the 30% Ruling?
Correctly completing your tax return with the 30% ruling requires careful attention to specific fields and forms. The process differs somewhat from a standard Dutch tax return.
You receive an annual statement from your employer showing your gross annual salary. It is important that the 30% ruling has already been processed in these figures. The amount shown on your annual statement is the amount you must enter in your tax return.
Step-by-step process:
- Check your annual statement from your employer carefully
- Enter the gross wage as stated on the annual statement
- Check whether the withheld wage tax has been processed correctly
- Report any applicable deductions
- Report foreign income if applicable
Note that you do not need to make manual calculations for the 30% ruling. Your employer has already done this in payroll processing. Do not try to deduct the 30% from your gross salary yourself, as this leads to errors in your return.
Common Mistakes When Filing with the 30% Ruling
Expats regularly make specific mistakes when completing their Dutch tax return. These mistakes can lead to incorrect calculations and problems with the tax authorities.
The most common mistakes are:
- Double deduction of the 30% ruling: Manually deducting 30% from the gross salary while this has already been processed in the annual statement
- Incorrect treatment of foreign income: Not reporting income from abroad that is taxable in the Netherlands
- Incorrect application of deductions: Claiming deductions that do not apply to expats
- Errors in box 2 and 3: Incorrect interpretation of partial foreign tax liability
To prevent these mistakes, always check your annual statement before completing your return. Make sure you understand which amounts have already been adjusted for the 30% ruling. When in doubt about complex situations, such as multiple employers or international aspects, it is wise to seek professional help.
If you discover an error after submitting your return, you can submit a correction to the tax authorities within five years. You do this through a revision request.
When to Seek Professional Help with Your Return?
While many expats can do their tax return themselves, there are situations where professional guidance is strongly recommended. The complexity of international tax matters and Dutch regulations means that mistakes can be costly.
Consider professional help in these situations:
- You have income from multiple countries
- You are a business owner or have a substantial interest
- You have complex investments or wealth structures
- You changed employers during the year
- You deal with tax treaties between countries
A specialized tax advisor can help you optimize your tax position and prevent costly mistakes. They have experience with the specific challenges that international employees face and can correctly handle complex situations.
The costs for professional help often outweigh the benefits, especially if you have a higher income or complex financial situations. Moreover, it gives you peace of mind that your return has been filed correctly according to Dutch tax rules.
For companies that employ international workers, a global mobility compliance audit can help evaluate and optimize processes around the 30% ruling and other tax aspects of international employment.
Correctly filing taxes with the 30% ruling requires knowledge of Dutch regulations and attention to detail. By informing yourself well about your obligations and seeking professional help where necessary, you ensure that you benefit optimally from these tax advantages while complying with all legal obligations. For personalized guidance on your specific situation, feel free to contact our tax experts.
