What is the 30% ruling?
The 30% ruling is a Dutch tax facility for employees recruited from abroad to work in the Netherlands. Instead of proving all actual costs of living outside your home country, your employer may pay up to 30% of your gross salary tax-free as compensation for extraterritorial costs.
In practical terms, this means you don't pay income tax on 30% of your salary. On an annual gross salary of €80,000, this easily saves you over €8,000 net per year.
Requirements in 2026
Not everyone qualifies. The main requirements:
1. Specific expertise
You must have specific expertise that is scarce in the Dutch labor market. In practice, this is mainly tested by your salary. In 2026, a minimum taxable annual salary of approximately €46,107 applies (or €35,048 for employees under 30 with a Dutch master's degree).
2. Recruited from abroad
You must have been recruited from abroad or seconded to the Netherlands. You lived more than 150 kilometers from the Dutch border for more than 16 of the 24 months before your first working day in the Netherlands.
3. Application through employer
The application is made by your employer to the Tax Authority. This must happen within four months of starting employment in the Netherlands. Late applications are a common mistake — the ruling then only applies from the first day of the month after the application.
What has changed?
The 30% ruling has been significantly adjusted in recent years:
Shortened duration
Since 2024, the maximum duration has been reduced from 8 to 5 years. Those already using the ruling before 2024 fall under transitional arrangements.
Phased reduction
From 2024, a phase-out applies:
- First 20 months — 30% tax-free
- Months 21 to 40 — 20% tax-free
- Months 41 to 60 — 10% tax-free
This means the net benefit over the full duration is lower than before. However, the ruling remains very attractive.
Salary cap
There is a maximum salary to which the 30% ruling may be applied. In 2026, this is the Balkenende norm (approximately €233,000). The 30% benefit does not apply to salary above this amount.
Benefits beyond the 30% ruling
Besides the tax-free allowance, there are more advantages:
Box 3 exemption
With the 30% ruling, you can opt for partial non-resident tax liability. This means your assets in box 3 (savings, investments) are not taxed in the Netherlands. This can save thousands of euros per year.
Frequently asked questions
Can I combine the 30% ruling with deductions?
Yes, but there are limitations. Because you opt for partial non-resident tax liability, you lose some deductions (like mortgage interest deduction). It's important to calculate which option is more beneficial. Our expat tax advisors can calculate this for you.
What if I change employers?
The 30% ruling is linked to your employer. When switching employers, you must reapply. The remaining duration transfers, provided you start a new job within three months.
Does it apply to freelancers?
No, the 30% ruling is only for employed workers. As a self-employed person, you can deduct actual extraterritorial costs, but this requires more administration.
What should you do?
Recently moved to the Netherlands for work, or planning to? Here are the steps:
- Check eligibility — Do you meet the salary requirement and the 150 km rule?
- Apply on time — Within four months of your first working day. Have your employer handle this.
- Calculate the benefit — The 30% ruling isn't always the most beneficial. Sometimes deducting actual costs is better.
- Get advice — The interaction between the 30% ruling, box 3 exemption, and mortgage interest deduction is complex. Have this calculated by a specialist.
Want to know what the 30% ruling means for your situation? Get in touch for personal expat tax advice or take our free tax check.
