Dutch 30% Ruling Drops to 27% in 2027: What Changes
What Is Changing in 2027?
The Dutch government passed legislation to gradually reduce the 30% ruling (now officially called the "Expat Scheme" since 2025). The key change: the tax-free allowance drops from 30% to 27% for new applications approved from January 1, 2027.
This is part of a broader set of reforms that began in 2024. The government's stated goal is to make the ruling more sustainable while maintaining the Netherlands' competitiveness for international talent. In practice, it means new arrivals from 2027 onward will pay more in tax than employees covered by the pre-2024 transitional rules.
But the reduction to 27% isn't the only change. The abolition of the partial non-resident taxpayer status (partiële buitenlandse belastingplicht), which already took effect in 2025, has significantly reduced the ruling's benefits for expats with foreign investment income. Together, these changes represent the most significant overhaul of the expat tax regime in decades.
The Phase-Down Timeline: 30% to 27%
Here's the timeline of how the ruling has been phased down:
| Period | Exemption Rate | Who It Applies To |
|---|---|---|
| Through 2023 | 30% | All approved rulings |
| 2024 – 2026 | 30% | Applications approved in this period |
| From 2027 | 27% | New applications approved from 2027 onward |
The critical point: the rate you receive depends on when the ruling takes effect, which is tied to your employment start date and application filing. If you start working in 2026 and file within the 4-month deadline, the ruling should take effect from your 2026 start date - even if the Dutch Tax Authority issues the approval letter in 2027. However, filing late or starting in 2027 means the 27% rate applies. Timely filing is essential.
If you start working in the Netherlands in 2026, file your application promptly: a timely filing gives you the 30% rate for the rest of 2026. Be aware that this does not carry past the cutover. From 1 January 2027 your rate becomes 27% for the remaining months of your ruling, like for everyone who started from 2024 onward. Missing the 4-month filing window is far more costly: then you lose the ruling entirely.
Who Is Affected - and Who Isn't
Not Affected (You Keep 30%)
- Pre-2024 ruling holders: If you already applied the ruling in a payroll before 1 January 2024, transitional law applies: you keep the full 30% for your entire remaining term. The phase-down does not reach this group.
- Employer changes within a pre-2024 ruling: If you change employers while a pre-2024 ruling is active and the new joint application is filed within 3 months, the transitional 30% rate travels with you.
Affected (You'll Get 27%)
- Everyone who first used the ruling in 2024, 2025 or 2026: You receive 30% through 31 December 2026. From 1 January 2027 your rate becomes 27% for the remaining months of your ruling. The change happens automatically; no new application is needed.
- New arrivals from 2027: Anyone who starts working in the Netherlands from January 1, 2027 and applies for the ruling will receive the 27% rate for the full term.
- Late 2026 starters who miss the 4-month filing window: If you start in Q4 2026 but fail to file within 4 months, you lose the ruling entirely - not just the 30% rate.
- Anyone who starts employment from January 1, 2027: Regardless of when you signed the contract or received the offer, the ruling takes effect from your first working day. A 2027 start date means the 27% rate.
Who Keeps 30%: the Transitional Rules
The only group that keeps the full 30% for its entire term is the group that already applied the ruling in a payroll before 1 January 2024. That transitional window is closed: it is no longer possible to join it. For everyone else, the calendar decides the rate, not the approval date:
- First used the ruling before 1 January 2024: 30% for the full term, under transitional law.
- First used the ruling in 2024, 2025 or 2026: 30% through 31 December 2026, then 27% from 1 January 2027 for the remaining months.
- Ruling starting from 1 January 2027: 27% for the full term.
- What still matters in 2026: starting and filing promptly gets you the 30% rate for the rest of 2026, and filing within the 4-month window protects the ruling itself. Use our calculator to verify you meet the salary threshold: at least €48,013 in taxable wages (€36,497 if you're under 30 with a Master's degree).
If you started in 2024-2026, you do not need to reapply and you cannot lose the ruling because of the phase-down: your approval simply continues at 27% from 1 January 2027 for its remaining months, up to the same 60-month maximum. In euros: at a €100,000 gross salary the step from 30% to 27% costs roughly €1,500 per year in extra tax.
Loss of Partial Non-Resident Taxpayer Status
The phase-down from 30% to 27% gets most of the headlines, but for many expats, the abolition of partial non-resident taxpayer status (partiële buitenlandse belastingplicht) is the bigger financial blow - and it's already in effect.
Before 2025, 30% ruling holders could elect to be treated as partial non-resident taxpayers. This meant that income from foreign assets in Box 2 (substantial shareholdings) and Box 3 (savings and investments) was exempt from Dutch tax. For expats with significant investment portfolios, foreign property, or shares in foreign companies, this was enormously valuable.
From January 1, 2025, this option no longer exists. All 30% ruling holders - including those with existing rulings - are now taxed as full Dutch residents on their worldwide income. Foreign savings, investments, rental income, and dividend income are all subject to Dutch taxation.
This change affects everyone, not just new applicants. If you have an existing ruling, you lost this benefit on January 1, 2025 - regardless of when your ruling was originally granted.
Unlike the 30%-to-27% phase-down (where existing holders keep their rate), the abolition of partial non-resident taxpayer status applies to all ruling holders from 2025 onward. If you have foreign investments, consult a tax advisor about the impact on your overall tax position.
The Financial Impact: How Much More Will You Pay?
Let's put concrete numbers on the difference between a 30% and 27% exemption.
Example: €85,000 Gross Salary
With 30% ruling (2026 rate):
Tax-free allowance: €85,000 x 30% = €25,500
Taxable income: €59,500
Approximate annual tax savings: ~€9,800
With 27% ruling (2027 rate):
Tax-free allowance: €85,000 x 27% = €22,950
Taxable income: €62,050
Approximate annual tax savings: ~€8,820
Difference: ~€980 per year, or ~€4,900 over 5 years. At higher salaries, the gap widens significantly. For someone earning €120,000, the difference exceeds €1,400 per year - over €7,000 across the full ruling period.
Use our interactive calculator to see the exact impact for your salary level.
| Gross Salary | Annual Savings at 30% | Annual Savings at 27% | Annual Difference | 5-Year Difference |
|---|---|---|---|---|
| €60,000 | ~€6,200 | ~€5,580 | €620 | €3,100 |
| €85,000 | ~€9,800 | ~€8,820 | €980 | €4,900 |
| €120,000 | ~€15,200 | ~€13,780 | €1,420 | €7,100 |
| €150,000 | ~€19,400 | ~€17,550 | €1,850 | €9,250 |
These figures are estimates based on 2026 tax rates. Your actual savings depend on additional factors like social security contributions, tax credits, and personal deductions.
What You Should Do Now
If You're Already in the Netherlands with a 30% Ruling
Check which group you are in. Did you already use the ruling before 1 January 2024? Then transitional law keeps you at 30% and the phase-down passes you by. Did you start in 2024 or later? Then budget for the automatic step to 27% on 1 January 2027: at a €100,000 gross salary that is roughly €1,500 per year in extra tax. In both cases, review your tax position regarding the loss of partial non-resident taxpayer status if you have foreign investments. Consider speaking with a tax advisor about restructuring your investment portfolio to minimize Dutch tax exposure.
If You're Planning to Move to the Netherlands in 2026
A 2026 start still pays: you get the 30% rate for the months of 2026, and every month of delay pushes more of your ruling into the 27% era. More importantly, the 4-month filing deadline decides whether you get the ruling at all. Here's your action plan:
- Negotiate your start date: If you're in negotiations with a Dutch employer, push for the earliest possible start date in 2026.
- Prepare documents in advance: Have your diplomas, CV, proof of residence history, and contract ready before day one. Don't wait until after you start to begin gathering paperwork.
- File within the first month: The law gives you 4 months, but filing early means the ruling, and the 30% rate for the rest of 2026, lands in your payroll sooner.
- Verify your salary qualifies: Check that your gross salary meets the 2026 threshold requirements.
If You're Planning to Move in 2027 or Later
The 27% ruling is still a significant tax benefit. While it's less generous than the 30% rate, it still means a substantial portion of your income is tax-free. Don't let the phase-down discourage you from applying - the ruling remains one of the most attractive expat tax incentives in Europe.
Common Questions About the 2027 Changes
Will the rate drop further below 27% in future years?
There is no current legislation for further reductions beyond 27%. However, the political landscape can change. The reduction from 30% to 27% was itself the result of a political compromise - earlier proposals suggested reducing it to 20% or eliminating it entirely. For now, 27% is the planned rate.
Can I apply in 2026 even if I started working in 2025?
If you started working in 2025 and didn't yet apply, you may already be outside the 4-month application deadline. The application must be submitted within 4 months of your first working day in the Netherlands. If that window has passed, you can no longer apply for the 30% ruling.
What if I start in December 2026 - do I still get 30%?
Yes, for December 2026 itself: if you start employment in 2026 and file within 4 months of your first working day, the ruling applies retroactively from your 2026 start date at 30%, even if the Dutch Tax Authority only processes it in 2027. From 1 January 2027 the rate becomes 27% for the remaining months, like for everyone who started from 2024 onward. File the same week you start to be safe, and ensure all documentation is complete and error-free.
Does the 60-month maximum duration change?
No. The maximum duration remains 60 months (5 years) regardless of whether you receive the 30% or 27% rate. Time previously spent in the Netherlands may reduce this duration - consult the FAQ for details.
I'm changing employers in 2027. Will my rate drop from 30% to 27%?
The employer change itself does not change your rate; the calendar and your start group do. If you first used the ruling before 2024, the transitional 30% travels with you to the new employer (file the new joint application within 3 months). If you started from 2024 onward, you are at 27% from 1 January 2027 with any employer. Read our guide on changing employers for the full process.
Get the Ruling Before Your Deadline Passes
Whether your rate is 30% or 27%, the ruling only exists if you file within 4 months of your first working day. For €12.10 incl. VAT we pre-fill the official Dutch Tax Authority form from your uploaded documents so the paperwork is ready before the deadline, and you submit it yourself. See our pricing.