The Netherlands 30% ruling - expat tax benefit guide
Highly skilled expats working in the Netherlands may be eligible for a special tax break known as the 30% ruling (Dutch: 30% regeling). This ruling allows 30% of your gross salary to be paid out tax-free, with only the remaining 70% taxed as usual.
Key facts about the 30% ruling
In practice, it means you pay less income tax, as a way to compensate for extra costs of moving to and working in a new country (e.g. travel, housing, etc.). The 30% ruling is administered by the Dutch Tax Administration (Belastingdienst) and is valid for up to 5 years per employer. Note: From 2027, the tax-free portion will be adjusted to 27% for new applicants.
What exactly is the 30% ruling?
The 30% ruling is a tax-free allowance for qualifying foreign employees in the Netherlands. Under this scheme, an employer can pay you 30% of your salary tax-free, and only the remaining 70% is subject to income tax. For example, if your gross annual salary is €100,000, you would only be taxed on €70,000, while the other €30,000 is tax-free.
This benefit is intended to cover "extraterritorial costs" - the extra expenses expats incur by working abroad, such as relocation, travel to visit family, higher cost of living, etc. Importantly, you do not need to provide receipts for these expenses under the 30% ruling; it's a flat allowance.
Some additional perks have historically been tied to the 30% ruling as well. For instance, it has allowed expats to exchange a foreign driver's license for a Dutch one without taking a test, and to opt for partial non-resident tax status (meaning no tax on certain savings/investments in the Netherlands). Note: The special tax status for investments (called partial foreign tax liability) is being phased out from 2025.
Eligibility checklist - who can get the 30% ruling?
Not every expat can qualify - you must meet all the criteria defined by the Dutch tax authorities. Here's an easy-to-read checklist of eligibility requirements for the 30% ruling:
You have a Dutch employer and a salaried job
The ruling only applies if you're in paid employment with a Dutch company (or local branch). Freelancers and self-employed individuals cannot use it unless they set up a company and become its employee. The contract should be for a role requiring specific skills.
You were recruited from outside the Netherlands
You must have lived at least 150 km away from the Dutch border for 16+ months out of the 24 months before your first work day in the Netherlands. In practice, this excludes people who were already living/studying in the Netherlands (or nearby border regions) recently.
You have specific expertise that is scarce in the Netherlands
This is generally proven by a minimum salary level. For 2025, your gross annual salary must be above approximately €65,000 (or €50,000 if you're under 30 and hold a master's degree). In tax terms, your salary excluding the 30% allowance should be above €46,660 in 2025 (or €35,468 if under 30 + master's).
You and your employer agree in writing to use the 30% ruling
Both parties must sign an agreement (often as part of your employment contract or an addendum) stating that your situation meets the conditions and you want to apply the 30% tax-free allowance.
You have not recently used the 30% ruling before
The 30% ruling can be granted for up to 5 years per expat. If you previously worked in the Netherlands and benefited from the 30% ruling, that period will generally count against the 5-year limit for any new job.
Tip: An easy indicator of eligibility is your salary level. For example, a job offer around €70,000+ gross will typically meet the threshold for the ruling (in 2025). If it's much lower, you probably won't qualify unless you're a young master's graduate in a special category.
How to apply for the 30% ruling
Applying for the 30% ruling is a joint effort between you and your employer. It's not automatic - you must submit an application and be approved by the tax authorities. Here is a step-by-step guide to the application process:
Confirm you meet the criteria
First, use the checklist above to verify eligibility. You can also review the official Belastingdienst conditions for the 30% facility for full details. It's wise to discuss with your employer or a tax advisor if you're unsure.
Fill out the application form with your employer
The 30% ruling application form ("Application Income tax and national insurance contributions - 30% facility") must be completed by both you and your employer together. You can download the form from the Belastingdienst website (available in English).
Gather the required supporting documents
Along with the form, you'll need to include several attachments. These typically include a copy of your ID/passport, proof of your previous address abroad, your employment contract, evidence of your qualifications, and a written statement from the employer about your skills.
Submit the application to the tax office
Send the signed form with all attachments to the designated Tax Office address. As of 2025, the form must be mailed to:
P.O. Box 2865, 6401 DJ Heerlen, The Netherlands
Deadline: Within 4 months of your employment start date. If the Tax Office receives your application within 4 months of your first work day, the ruling (if granted) can apply retroactively from your start date.
Wait for the decision
After submission, the Belastingdienst will review your application and send a formal decision letter. This letter confirms whether the 30% ruling is granted and lists the start and end date of your 30% ruling period. The standard processing time is about 8 weeks, but it can range anywhere from ~2 to 6 months in complex cases.
Start receiving the tax-free allowance
If approved, your employer will adjust your payroll so that up to 30% of your gross wage is paid out free of tax going forward. The ruling is usually applied from your start date if you met the 4-month application deadline.
Required documents for the application
When applying, you must include supporting documents to prove you meet the conditions. The exact documentation can vary case by case, but generally be prepared to provide:
Personal Documents
- • Valid ID or passport
- • BSN (Citizen Service Number)
- • Curriculum Vitae (CV)
- • Diplomas or qualifications
Employment Documents
- • Employment contract
- • Work/residence permit (if applicable)
- • Employer's tax number
- • Written agreement for 30% ruling
Residence Proof
- • Proof of prior residence outside NL
- • Rental agreements from abroad
- • Utility bills from previous country
- • Registration in foreign municipality
Employer Documents
- • Scarce-skills declaration
- • Company details and tax number
- • Recruitment effort documentation
- • Skills assessment letter
Important: Ensure all documents are in English or Dutch (or accompanied by translations if in another language). Missing documents can result in the tax office sending follow-up requests or outright rejecting the application as incomplete.
Duration and recent changes to the 30% ruling
How long does the 30% ruling last?
The maximum duration is 5 years (60 months) from the start date on your tax office approval letter. After 5 years, the benefit stops (there is no possibility to extend it beyond this cap in the current law). Historically, the ruling used to last longer - 8 years for applications approved between 2012 and 2018, and even 10 years before 2012 - but since 2019 it's been limited to 5 years for all new applicants.
Key recent changes (2024-2025)
Introduction of a salary cap (2024)
As of January 1, 2024, the 30% tax-free allowance can only be applied to salary up to a certain ceiling. This salary cap is set to the so-called "Balkenende norm," which was €233,000 for 2024. For 2025 the cap is around €246,000 (30% of which is €73,800 maximum tax-free).
Abolition of partial non-resident status (2025)
One perk of the 30% ruling was the option to be treated as a partial non-resident for tax purposes. The government decided to end this facility from January 1, 2025. Expats starting the 30% ruling in 2025 or later can no longer opt for the partial foreign tax status in their tax returns.
27% ruling from 2027
If you started using the 30% ruling in 2024 or later, you can continue to get 30% tax-free through 2025 and 2026. Then, from January 1, 2027, the maximum tax-free portion for ongoing cases will become 27% for the remainder of your 5-year term.
Higher salary requirements from 2025 onward
The general salary threshold for 30% ruling was €46,107 in 2024 and is €46,660 in 2025, and it's set to increase to around €50,436 in 2027. The lower threshold for under-30s with a master's will also rise accordingly.
Frequently asked questions & misconceptions
❓ "Do I get a 30% bonus on top of my salary?"
No. The ruling doesn't give you extra money from your employer - rather, it allows a portion of your agreed salary to be untaxed. Practically, your net pay is higher because the tax on 30% of your wage is waived. It's a tax break, not a bonus paid by the company.
❓ "Is my employer obliged to give me the full 30% tax-free?"
Not necessarily. The law allows up to 30% of your salary to be paid tax-free, but it's by agreement with your employer. In practice most employers will grant the full 30% benefit (since it doesn't cost them extra; it's about how your salary is taxed). However, you should discuss it and have it in writing.
❓ "What if I start the job, then learn about the 30% ruling later?"
You can still apply later, even if you didn't know about it initially. If you apply within 4 months of your start date, you'll get the benefit retroactively for those first months. If you apply after 4 months, the ruling will kick in from the next month after approval.
❓ "Can I use the 30% ruling if I was a student in the Netherlands before?"
Usually no, because of the 150 km rule. If you lived in the Netherlands (or nearby) for your studies within 2 years before your job, you fail the "recruited from abroad" condition. One exception: if you came from abroad specifically for a Dutch PhD or postdoc position, you might still qualify afterwards.
❓ "Does the ruling affect my social security, benefits, or mortgage?"
Yes, it can. Since 30% of your salary is not taxed or even reported as taxable income, your official taxable income is lower. This can affect unemployment or disability benefits, which are calculated on your last taxable salary. When applying for a mortgage, some lenders might only count the 70% part as your income.
❓ "What happens after 5 years? Can it be extended or renewed?"
After 5 years (60 months) from the start date on your ruling decision, the benefit simply expires. There is no extension possible under current rules. You will then return to normal taxation on your full income.
❓ "Can I switch employers and keep the 30% ruling?"
Yes, within limits. If you change jobs, you must re-apply for the ruling with the new employer (the benefit doesn't automatically transfer). Key conditions: there should be no more than 3 months gap between jobs, and you need to submit the new application within 4 months of starting the new job.
Official resources & next steps
If you think you might be eligible for the 30% ruling, a great next step is to explore the official information and start the application process:
Belastingdienst Official Resources
- • 30% Facility (Expatriate Scheme) Information
- • Official application form download
- • Eligibility criteria and FAQ
- • Processing guidelines
Government.nl Resources
- • Expat facility overview
- • Recent policy changes explanation
- • High-level government guidance
- • Integration with other services
Local Support Services
- • Expat centers in major cities
- • IND (Immigration) guidance
- • Municipal office assistance
- • Relocation service providers
Tax Calculation & Professional Services
- • Free online 30% ruling calculator
- • Specialized expat tax services
- • Complex situation guidance
- • Application assistance
- • Ongoing tax optimization
Ready to apply?
Make sure you have a qualifying job offer, then discuss the 30% ruling with your employer. It often becomes part of your employment contract negotiations. Once you have the job and meet the conditions, don't delay - gather your documents and submit that application within four months of your start date for maximum benefit.
Thousands of expats have successfully used this benefit to ease their tax burden and adjust to life in the Netherlands. Good luck, and enjoy the extra take-home pay while it lasts!
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