{"id":3403,"date":"2025-08-21T08:00:00","date_gmt":"2025-08-21T06:00:00","guid":{"rendered":"https:\/\/eastwing.nl\/kennisbank\/uncategorized\/what-is-the-30-ruling-netherlands\/"},"modified":"2025-08-25T15:14:41","modified_gmt":"2025-08-25T13:14:41","slug":"what-is-the-30-ruling-in-the-netherlands-2","status":"publish","type":"post","link":"https:\/\/eastwing.nl\/en\/knowledge-base\/30-ruling\/what-is-the-30-ruling-in-the-netherlands-2\/","title":{"rendered":"What is the 30% ruling in the Netherlands?"},"content":{"rendered":"

As an international professional moving to the Netherlands, you will undoubtedly encounter the term 30% ruling Netherlands<\/strong>. This expat regulation is one of the most attractive tax benefits the country offers to international employees. The 30 percent ruling allows a significant portion of your salary to remain tax-free, which can substantially increase your net income. For many expats, this makes the difference between a financially attractive relocation and a costly venture.<\/p>\n

In this article, we will explain exactly what the 30% ruling entails, which conditions you must fulfill, and how you can successfully apply. We will also discuss common mistakes you can avoid to prevent compliance problems. This information is essential for every international employee considering working in the Netherlands.<\/p>\n

What Exactly Is the 30% Ruling?<\/h2>\n

The 30% ruling<\/strong>, officially known as the Expat Regulation, is a Dutch tax facility that allows international employees to receive up to 30% of their gross salary tax-free. This regulation is designed to make the Netherlands more attractive to highly educated international professionals and to compensate for the additional costs associated with working abroad.<\/p>\n

The legal basis of this regulation lies in Dutch tax legislation, specifically in the Income Tax Act. The goal is to keep the Netherlands competitive in the international labor market by offering tax benefits for expats<\/strong>. The regulation recognizes that international employees often face higher costs, such as double housing expenses, international relocations, and higher living costs.<\/p>\n

Since 2024, important changes have been implemented. For new applications approved after January 1, 2024, the percentage is gradually reduced: 30% for the first 20 months, 20% for the next 20 months, and 10% for the last 20 months. Additionally, a salary cap of \u20ac233,000 per year has been established.<\/p>\n

Conditions for the 30% Ruling<\/h2>\n

To qualify for the 30% ruling, you must meet various strict criteria. These conditions are designed to ensure that only truly international employees with specific expertise can use the regulation.<\/p>\n

Salary Threshold<\/h3>\n

You must earn a minimum salary<\/strong> to qualify for the regulation. For 2025, this amounts to \u20ac46,660 per year (70% of the gross salary, thus excluding the 30% allowance). For employees younger than 30 years with a Dutch master’s degree or equivalent, a lower minimum of \u20ac35,468 applies.<\/p>\n\n\n\n\n\n\n\n
Year<\/th>\nMinimum Salary (General)<\/th>\nMinimum Salary (<30 Years with Master’s)<\/th>\n<\/tr>\n<\/thead>\n
2025<\/td>\n\u20ac46,660<\/td>\n\u20ac35,468<\/td>\n<\/tr>\n
2024<\/td>\n\u20ac46,107<\/td>\n\u20ac35,048<\/td>\n<\/tr>\n
2023<\/td>\n\u20ac41,954<\/td>\n\u20ac31,891<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Distance Requirement<\/h3>\n

You must have lived at least 16 of the 24 months preceding 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 parts of Germany, France, or the United Kingdom automatically disqualifies you.<\/p>\n

Employer Requirements<\/h3>\n

Your employer must demonstrate that you possess specific expertise<\/strong> that is scarce in the Dutch labor market. This is documented by a written statement in which the employer confirms that they could not find comparable expertise locally. Scientific researchers at recognized institutions are exempt from this requirement.<\/p>\n

Benefits of the 30% Ruling<\/h2>\n

The financial benefits of the 30% ruling are substantial and extend beyond just the tax-free allowance on your salary. This expat tax benefit<\/strong> can substantially increase your net income and improve your overall financial position in the Netherlands.<\/p>\n

Tax-Free Allowance<\/h3>\n

The main benefit is that 30% of your gross salary is completely exempt from Dutch income tax and payroll tax. This means you effectively pay a lower tax rate on your total income. For 2025, the maximum tax-free allowance is \u20ac73,800 per year.<\/p>\n

Partial Foreign Tax Liability<\/h3>\n

Until January 1, 2025, 30% ruling beneficiaries could choose partial foreign tax liability for Box 2 and Box 3. This option has been abolished from 2025, meaning all beneficiaries pay the same Box 2 and 3 taxes as Dutch residents.<\/p>\n

Driver’s License Benefit<\/h3>\n

An often overlooked benefit is that you and your family members can each exchange any foreign driver’s license for a Dutch driver’s license, regardless of the country of issue. This saves time and costs of retaking your driver’s license.<\/p>\n

Application Procedure and Required Documents<\/h2>\n

Applying for the 30% ruling requires careful preparation and proper documentation. The application is submitted jointly by you and your employer to the Tax Administration.<\/p>\n

Step-by-Step Application<\/h3>\n
    \n
  1. Download Form<\/strong>: Download the official application form from the Tax Administration website<\/li>\n
  2. Gather Documentation<\/strong>: Ensure all required documents are complete<\/li>\n
  3. Joint Application<\/strong>: Fill out the form together with your employer<\/li>\n
  4. Submit<\/strong>: Send the signed form to the Tax Administration<\/li>\n
  5. Wait for Decision<\/strong>: Processing time is 1 to 6 months<\/li>\n<\/ol>\n

    Required Documents<\/h3>\n

    For a successful application, you need the following documents:<\/p>\n