30% Ruling for Expats: Complete Guide to Dutch Tax Benefits

The 30% ruling is one of the most valuable tax benefits available to skilled foreign workers in the Netherlands. Here's your complete guide.

What is the 30% Ruling?

The 30% ruling allows eligible expats to receive 30% of their gross salary tax-free, significantly reducing their Dutch tax burden. This benefit recognizes the extra costs associated with working abroad.

Eligibility Requirements

Primary Criteria

• Scarce expertise: You must have specific knowledge or skills not readily available in the Dutch labor market
• Salary threshold: Minimum gross salary of €41,954 (2025)
• Distance requirement: Must have lived more than 150km from the Dutch border for 16 of the 24 months before employment

Age Exception

For employees under 30 with a Master's degree:

• Lower salary threshold of €32,341 (2025)
• Same distance and expertise requirements apply

How It Works

Tax Calculation Example

Without 30% Ruling - €80,000 salary:

• Taxable income: €80,000
• Income tax: ~€22,500
• Net income: ~€57,500

With 30% Ruling - €80,000 salary:

• Tax-free portion: €24,000 (30%)
• Taxable income: €56,000
• Income tax: ~€13,500
• Net income: ~€66,500
• Savings: €9,000 annually

Additional Benefits

Partial Non-Resident Status

Choose between:

1. Resident taxpayer: Tax on worldwide income with 30% ruling
2. Partial non-resident: Tax only on Dutch income, 30% ruling on Dutch salary

Other Advantages

• Exempt from Box 3 wealth tax on foreign assets
• International driving license acceptance
• Simplified tax filing in some cases

Application Process

When to Apply

• Within 4 months of starting employment
• Can be retroactive to employment start date
• Employer typically handles the application

Required Documents

• Employment contract
• Proof of previous residence (rental agreements, utility bills)
• Educational certificates
• Passport and residence permit

Duration and Changes

Validity Period

• Maximum 5 years (reduced from 8 years in 2019)
• Non-transferable between employers without reapplication
• Cannot be extended beyond 5 years

Recent Changes

• Duration reduced from 8 to 5 years (2019)
• Increased salary thresholds annually
• Stricter enforcement of expertise requirements

Common Mistakes to Avoid

1. Late application: Missing the 4-month deadline
2. Salary miscalculation: Not meeting minimum thresholds
3. Documentation gaps: Insufficient proof of previous residence
4. Job changes: Forgetting to reapply with new employer

Maximizing Your Benefits

Tax Planning

• Optimize pension contributions
• Consider partial non-resident status carefully
• Plan for post-ruling period

Financial Planning

• Save the tax savings for future years
• Consider property purchase timing
• Plan international investments strategically

Ready to calculate your potential savings? Use our expat tax calculator with 30% ruling scenarios.