Netherlands 30% Ruling Guide

Eligibility Criteria

The 30% ruling is available to employees who meet all of the following conditions:

• Recruited from abroad (aanwervingsvereiste): The employee must have been recruited from outside the Netherlands. This means the employee lived at least 150 km from the Dutch border (as the crow flies) for a continuous period of at least 16 out of the 24 months before the first day of employment in the Netherlands. The distance is measured from the employee's previous residence to the border — not to the workplace. The 150 km threshold covers most of Germany (except parts of North Rhine-Westphalia and Lower Saxony), all of Belgium and Luxembourg, and parts of northern France — employees from these nearby areas do not qualify. Employees from the UK, Ireland, Scandinavia, Southern/Eastern Europe, Americas, Asia, Africa, and Australia generally qualify.
• Specific expertise (specifieke deskundigheid): The employee must have specific expertise not readily available on the Dutch labour market. This is presumed to be satisfied if the employee's gross salary (excluding the 30% allowance) exceeds the salary threshold — approximately €46,107 in 2026 (adjusted annually). A lower threshold of approximately €35,048 applies to employees under 30 with a master's degree from a qualifying non-Dutch university (proof of degree required). PhD graduates from any institution qualify regardless of age — no salary threshold applies (the specific expertise is presumed).
• Employment relationship: The employee must have an employment relationship (dienstbetrekking) with a Dutch employer (inhoudingsplichtige). The employer applies for the ruling on behalf of the employee. Freelancers/zzp'ers do not qualify — the ruling is only available for employees. Secondment arrangements (detachering) may qualify if the secondee remains on the payroll of the foreign employer but works temporarily in the Netherlands.
• Maximum duration: The ruling is valid for a maximum of 5 years (60 months). The 5-year clock starts from the first day of employment in the Netherlands, not from the date the ruling is granted. If the employee worked in the Netherlands previously (even without the ruling), the earlier period may count toward the 5-year maximum. Periods spent in the Netherlands as a student do not count.

How the 30% Allowance Works

• Tax-free allowance: The employer pays up to 30% of the gross salary tax-free. The remaining 70% is subject to standard Dutch payroll tax (loonheffing). The allowance is intended to cover extraterritorial costs (dubbele huisvestingskosten, hogere levensonderhoud, verhuiskosten, reiskosten). No actual receipts are required — the allowance is a blanket reimbursement.
• WNT cap (2024+): From 2024, the 30% allowance is capped at 30% of the WNT norm (Wet Normering Topinkomens) — approximately €242,000 in 2026. This means the maximum tax-free allowance is 30% × €242,000 = €72,600 per year. Any salary above the WNT cap is fully taxable — the 30% calculation applies only to salary up to the cap. This reform was introduced to limit the ruling for very highly paid expats.
• Reduced rates (30/10/20 scheme for 2027+): From 2027, the 30% allowance is being replaced with a degressive scheme: 30% in the first 20 months, 20% in months 21–40, and 10% in months 41–60. This phased reduction encourages integration into the Dutch tax system over time. For rulings granted before 2027, the 30% flat rate continues for the remaining duration (subject to the 5-year cap).
• Salary floor (no choice): The 30% allowance cannot reduce the taxable salary below the minimum salary threshold — effectively the taxable salary after applying the 30% exemption must remain at or above the specific expertise threshold (~€46,107 in 2026). This means the 30% allowance is self-limiting for employees whose gross salary is close to the threshold.
• Payroll treatment: The employer applies the 30% allowance in the monthly payroll run. The tax-free portion is coded separately (code 3001 in the payroll system) and appears on the jaaropgaaf (annual statement). The employee sees the benefit immediately in their net pay.

Partial Non-Resident Taxpayer Status

• Opt-out of box 2 and box 3: Employees with the 30% ruling can apply for partial non-resident taxpayer status (partiële buitenlandse belastingplicht). This allows the taxpayer to opt out of Dutch taxation in box 2 (substantial interest) and box 3 (savings and investments). Only box 1 income (employment, home ownership) remains taxable in the Netherlands. This is a significant benefit for expats with substantial assets, shareholdings, or investment portfolios outside the Netherlands — they avoid Dutch wealth tax (box 3) and dividend/capital gains tax (box 2) on their non-Dutch assets.
• Election in tax return: The partial non-resident status must be elected in the annual income tax return (aangifte inkomstenbelasting) by ticking the relevant box. The election is made per tax year and is not automatic. The taxpayer can choose each year whether to apply it — useful if assets change significantly.
• Condition — worldwide income test: To qualify for partial non-resident status, the taxpayer must be able to demonstrate that they would be tax resident in another country under that country's domestic law (not just under the tax treaty) for the relevant year. In practice, this is self-declared. The Belastingdienst rarely challenges the election unless there are clear treaty-shopping indicators.
• Interaction with tax treaties: The partial non-resident status does not override tax treaties. If the taxpayer's home country has a treaty with the Netherlands, the treaty tie-breaker rules still determine overall tax residence. The partial non-resident status simply means the Netherlands does not tax box 2/3 income of the ruling holder — the home country may still tax it under its domestic rules.

Application Process

• Who applies: The employer applies for the 30% ruling through the Belastingdienst using the online application form (aanvraag 30%-regeling). The application must be submitted within 4 months of the first day of employment in the Netherlands — late applications may still be accepted but the benefit starts from the date of application, not from the employment start date.
• Required documentation: Employment contract, proof of previous residence (municipal registration abroad, rental agreement, utility bills, tax return), proof of specific expertise (diploma or CV if qualifying via salary threshold), and a signed agreement between employer and employee regarding the 30% allowance.
• Processing time: The Belastingdienst processes applications within 8–12 weeks. The ruling is issued as a beschikking (formal decision) and is valid for the maximum 5-year period. The employer receives the decision and must provide a copy to the employee.
• Change of employer: If the employee changes jobs within the 5-year ruling period, the new employer must apply for a transfer of the ruling (overgang). The ruling continues from the remaining term if the application is made within 3 months of the new employment start date. A break in employment of more than 3 months may restart the clock only if the employee leaves the Netherlands and meets the 150 km requirement again — this is rare.

2026 Rule Changes and Future Outlook

• WNT cap fully in effect (2024+): The cap on the salary base for the 30% calculation at the WNT norm (~€242,000) is now fully implemented. No grandfathering for rulings granted before 2024 — the cap applies to all active rulings.
• Degressive rates from 2027: The 30/20/10 scheme (30% first 20 months, 20% next 20, 10% final 20) will apply to rulings granted from 2027 onwards. Existing rulings continue under the old 30% flat rate. This change makes the ruling less attractive for longer-term expats but still valuable for the first 20 months.
• Partial non-resident status unchanged: The opt-out for box 2/3 remains available for the full ruling period under the new scheme. This is likely to remain the most valuable aspect of the ruling for high-net-worth expats regardless of the 30% rate reduction.
• Political risk: The 30% ruling is politically contentious — left-wing parties argue it primarily benefits high-income expats while right-wing parties support it as essential for talent attraction. Further restrictions are possible under future coalition agreements. The 2027 reform (degressive rates) was agreed in the 2024 coalition accord (Schoof cabinet).

For personal income tax and filing obligations, see our Personal Tax Guide →. For corporate structures for expat professionals and BV formation, see our Corporate Tax Guide →. For social security coordination and AOW (Dutch state pension) credits when working abroad, see our Hiring Employees Guide → (forthcoming).