The 30% ruling, officially referred to by the Dutch Tax Authorities as the Expat Facility, is a Dutch tax scheme that allows employers to grant a tax-free allowance to qualifying incoming employees. This allowance helps cover the additional costs associated with relocating to and working in the Netherlands.
The scheme is intended to attract highly skilled migrants and other qualifying internationals with expertise that is difficult to find on the Dutch labour market.
What Is the 30% Ruling?
If you move to the Netherlands for work, you may face higher expenses compared to your home country, such as housing costs, relocation expenses, and differences in the cost of living. These additional expenses are referred to as extraterritorial costs.
Instead of reimbursing these costs individually, your employer may choose to grant you a tax-free allowance of up to 30% of your taxable salary, including certain variable components such as bonuses.
To apply the 30% ruling, you and your employer must submit a joint application to the Dutch Tax Authorities (Belastingdienst).
Conditions for the 30% Ruling
To qualify for the Expat Facility, all of the following conditions must be met.
Incoming Employee Requirement
You qualify as an incoming employee if you:
Specific Expertise Requirement (Salary Thresholds)
The Dutch Tax Authorities assume that you possess specific expertise if your taxable salary exceeds the applicable minimum income threshold. These thresholds are revised annually and are based on figures set for 2026.
Exemptions from the Salary Requirement
If you are conducting scientific research at a designated research institution, or if you are a medical doctor in specialist training (AIOS), you may always make use of the Expat Facility (30% ruling).
In these cases, no minimum salary threshold applies.
Employment Condition
You must:
Duration of the 30% Ruling
If approved, the 30% ruling is granted for a maximum duration of 5 years.
The duration may be reduced if you previously lived or worked in the Netherlands during the 25 years prior to your employment start date.
No Reduction Applies If, in the Past 25 Years:
How is the 30% ruling calculated?
Below is an example of how the 30% ruling may be calculated, using the 2026 minimum salary threshold.
Daisy, a Java developer, is 31 years old and has agreed with her employer on a gross monthly salary of € 6,200, excluding 8% holiday allowance. This salary meets the IND salary criterion for highly skilled migrants aged 30 or older.
The minimum salary requirement for the 30% facility is € 4,002 per month, including 8% holiday allowance. This equals a minimum monthly salary of € 3,705.56, excluding holiday allowance.
Calculation
This difference represents 40.23% of the agreed salary, which exceeds the maximum allowable tax-free allowance of 30%.
Result
Daisy can therefore receive € 1,860 per month tax-free, excluding 8% holiday allowance.
If you would like a personalised calculation based on your situation, feel free to contact us.
Impact on Net Salary and Benefits
Under the Expat Facility, up to 30% of your taxable wage may be paid as a tax-free allowance.
However, reducing the taxable salary may affect:
Once the 30% ruling expires, your net income will decrease, as the tax-free allowance no longer applies.
When to Apply for the 30% Ruling
If the application is submitted within 4 months after your first working day, the ruling applies retroactively. If submitted later, the ruling applies from the first day of the month following approval.
A BSN (citizen service number) is required for the application. This becomes available after registration with the municipality.
All About Expats and our partner Eastwing should receive the required information as early as possible to avoid delays.
Required Documents
To prove incoming employee status, documentation must demonstrate that you lived more than 150 kilometres from the Dutch border for at least 16 months in the 24 months prior to your first working day in the Netherlands.
Accepted documents include:
You can provide the required information by sending these documents to: expatdesk@allaboutexpats.nl.
Additional Advantages of the 30% Ruling
Deemed Non-Resident Taxpayer Status
Driver’s License Exchange
Employees with the 30% ruling may exchange a foreign driver’s license for a Dutch one without taking a driving test.
This is particularly beneficial for non-EU nationals, who otherwise may only use their foreign license for 6 months.
Switching Employers
The 30% ruling can continue with a new employer for the remaining duration, provided that:
Learn More
Rules surrounding the 30% ruling are subject to change.
For personalised advice, applications, or employer guidance, please contact All About Expats or our partner Eastwing.
All About Expats supports international professionals and Dutch employers with a full range of immigration, Employer of Record (EOR) and relocation services in the Netherlands.
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