30% Ruling Netherlands: Complete Guide for Expats
The 30% ruling Netherlands is one of the most valuable tax benefits available to expats working in the Netherlands. Here’s everything you need to know about how it works, who qualifies, and what’s changing.
What is the 30% ruling?
The 30% ruling is a Dutch tax facility that allows employers to pay up to 30% of a qualifying employee’s gross salary completely tax-free. It is designed to compensate expats for the extra costs of relocating to and living in the Netherlands, and to help Dutch employers attract international talent.
Who qualifies?
To be eligible you must meet three main conditions. First, you must be recruited from abroad or transferred to the Netherlands. Specifically, you must have lived more than 150 kilometres from the Dutch border for at least 16 of the 24 months before starting work here. Second, you must have specific expertise that is scarce in the Dutch labour market. Third, your taxable salary must meet the minimum threshold. In 2026 this is €48,013 gross annually for most employees, or €36,497 for employees under 30 with a verified master’s degree. Grant Thornton
Before you can use the 30% ruling at work, make sure you have your BSN number sorted first.
How does the benefit work in 2026?
Under the current rules, employers can pay up to 30% of an expat’s gross salary tax-free for the first 20 months of employment. This drops to 20% for the next 20 months and 10% for the final 20 months of the five-year period. There is also a salary cap. The ruling only applies to income up to €262,000 in 2026. Any salary above that amount is taxed normally. Belastingdienst
How do you apply?
Your employer applies on your behalf through the Dutch Tax Authority (Belastingdienst). The application must be submitted within four months of your start date to receive the benefit from day one. If submitted later, it only applies from the first day of the following month. You can find the official application form on the Belastingdienst website.
What costs does the 30% ruling cover?
The tax-free allowance is intended to cover what the Dutch tax authority calls extraterritorial costs. These include housing costs above 18% of your salary, travel to your home country, costs for applying for residence permits and visas, school fees for international schools, and the general higher cost of living in the Netherlands compared to your home country.
Can you lose the 30% ruling?
Yes. If you change employers you must notify the Belastingdienst and your new employer must submit a fresh application. The five-year clock does not reset and continues from your original start date. You can also lose the ruling if your salary drops below the minimum threshold, or if you stop meeting the 150km distance requirement.
The 30% ruling and your tax return
Even with the 30% ruling, you still file a Dutch tax return each year. The ruling reduces your taxable income but does not eliminate your tax obligations entirely. Until the end of 2026 you may also be eligible for partial non-resident taxpayer status, which exempts certain foreign assets from Dutch wealth tax. Speak to a tax adviser about whether this applies to you before the window closes.
What’s changing in 2027?
From January 1, 2027, the maximum tax-free allowance will be permanently reduced from 30% to 27% for employees who began their ruling in 2024 or later. If you are planning a move to the Netherlands, applying sooner rather than later is worth considering.
Frequently asked questions
Does the 30% ruling apply to bonuses? Yes. Bonuses are included in the salary calculation and the 30% tax-free allowance applies to them as well, up to the €262,000 salary cap.
Can self-employed people use the 30% ruling? In some cases yes, through a Dutch BV structure, but the rules are complex. Speak to a Dutch tax specialist if you are setting up as a freelancer or entrepreneur.
What happens after five years? The ruling expires and your full salary becomes taxable at normal Dutch income tax rates. Many expats see a significant drop in net income at this point and should plan ahead financially.
Is the 30% ruling worth it? For most qualifying expats yes. It can save thousands of euros per year in income tax, particularly in the first 20 months when the full 30% applies.
Bottom line
The 30% ruling remains one of the most generous expat tax benefits in Europe. If you think you qualify, speak to a Dutch tax adviser or ask your employer’s HR department to check your eligibility before your start date. For official guidance visit the Belastingdienst.
