The 30% ruling Netherlands is a tax benefit that allows foreign employees to receive up to 30% of their salary tax-free. This ruling is intended as compensation for additional costs that expats incur when relocating to the Netherlands. Employers can use this benefit to attract and retain international talent.
What Exactly Is the 30% Ruling Netherlands?
The 30% ruling is an official tax facility from the Dutch government that enables employers to provide highly skilled foreign employees with a tax-free allowance. Instead of taxing 100% of the salary, only 70% is considered taxable income.
This ruling is also called the “expat ruling” and is supervised by the Tax Administration. The goal is to make the Netherlands more attractive to international specialists by compensating for the additional costs they incur when relocating and working abroad.
The ruling covers various extraterritorial costs such as:
- Application costs for residence permits and visas
- Hotel costs during the transition period
- Travel costs to the home country
- Dutch language courses
- Higher living costs such as rent and utilities
Who Qualifies for the 30 Percent Ruling?
To use the 30 percent ruling, you must meet specific conditions that qualify you as a highly skilled migrant. The main criteria are based on salary, expertise, and residence history.
For 2025, the following salary thresholds apply:
| Category | Minimum Salary (70% basis) | Gross Annual Salary (for 30% ruling) |
|---|---|---|
| General | €46,660 | €66,657 |
| Under 30 years with master’s degree | €35,468 | €50,669 |
| Scientific research | No minimum | No minimum |
Additionally, you must meet these conditions:
- You are employed by a Dutch employer
- You were recruited or seconded from abroad
- You lived more than 150 kilometers from the Dutch border for at least 16 of the 24 months before your first working day
- You have specific expertise that is scarce in the Dutch labor market
- Your employer and you agree in writing to apply the ruling
How Does the 30 Ruling for Expats Work in Practice?
In practice, the 30 ruling for expats works by reducing your gross taxable salary from 100% to 70%. This means that 30% of your salary is completely free from wage and income tax.
From 2025, there is a maximum salary of €246,000 per year to which the 30% ruling can be applied. This means that the maximum tax-free allowance is €73,800.
The calculation works as follows:
- Gross annual salary: €60,000
- 30% tax-free: €18,000
- Taxable income: €42,000
Important considerations:
- Pension premiums and bonuses usually do not fall under the ruling
- Holiday pay, secondary employment conditions, and company cars do fall under the ruling
- The reduction of your taxable salary has consequences for benefits, mortgages, and pension accrual
In addition to the tax benefit, you also receive other advantages such as the possibility of partial non-resident status for box 2 and 3 (until 2025) and the ability to exchange your foreign driver’s license without taking a driving test.
What Are the Benefits of the 30% Ruling for Employers?
For employers, the 30% ruling offers significant advantages in attracting international talent. The main advantage is that employers can be more competitive in the international labor market without proportionally increasing their wage costs.
Concrete benefits for employers:
- Cost efficiency: The net income of expats increases without the employer having to pay more gross wages
- Attractiveness: The Netherlands becomes more attractive to highly skilled international specialists
- Competitive advantage: Ability to compete with other European countries that have similar schemes
- Talent retention: Expats are more inclined to continue working in the Netherlands longer
Employers can strategically use the ruling as part of their global mobility policy. By utilizing a global mobility compliance audit, companies can optimize their international employee processes and ensure they maximize all benefits of the 30% ruling.
This is particularly valuable for companies that regularly hire international specialists or that are part of multinational organizations with frequent employee relocations.
How Long Does the 30% Ruling Last and What Are the Key Changes?
The duration of the 30% ruling depends on when your application was approved. For all applications approved after January 1, 2019, a maximum duration of five years applies.
Important recent changes:
From 2024:
- Maximum salary of €233,000 (in 2025: €246,000) to which the ruling can be applied
- For those who already used the ruling in 2022, the maximum applies from January 1, 2026
From 2025:
- Abolition of partial non-resident status for box 2 and 3
- Expats pay the same tax as Dutch residents on wealth and investments
From 2027:
- Reduction from 30% to 27% for new applicants from 2024
- Those who already used the ruling before 2024 retain the 30% percentage
If you change employers, you can retain the ruling if you find a new job within three months after termination of your previous job that meets the conditions. You must then submit a new application within four months after starting your new job.
These changes make it all the more important to act timely and correctly when applying for and maintaining the 30% ruling. A thorough knowledge of the changing legislation helps both employers and employees to make optimal use of this tax benefit. For personalized guidance on your specific situation, contact our experts for professional assistance.
