What is the 30% Ruling?
The 30% ruling (officially the "Expatregeling") is a Dutch tax benefit for skilled international workers. If you qualify, up to 30% of your gross salary is exempt from Dutch income tax — meaning you keep significantly more of your earnings.
The ruling was designed to make the Netherlands attractive to international talent by compensating for the extra costs of living abroad (housing, travel, cost-of-living differences). It's one of the most generous expat tax benefits in Europe.
Key facts:
- Tax-free allowance: 30% of gross salary (phasing to 27% from 2027)
- Duration: Up to 5 years (60 months)
- Available to: Employees recruited from abroad to work in the Netherlands
- Filed by: The employer, on behalf of the employee
Who is Eligible?
To qualify, you must meet ALL four criteria:
Criterion 1: Employed by a Dutch company
You must have a formal employment contract with a company registered in the Netherlands (or a Dutch branch of a foreign company). Self-employed individuals and freelancers cannot apply — unless they establish a Dutch BV and become its employee.
Criterion 2: Recruited from abroad
Your employer must have actively recruited you from outside the Netherlands. The tax authority looks for evidence that the employer initiated the hire — job advertisements, recruitment documentation, and proof that comparable local talent wasn't available. Since September 2025, this is scrutinized more closely than before.
Criterion 3: The 150km rule
You must have lived at least 150 km from the nearest Dutch border for at least 16 out of the 24 months before your first working day in the Netherlands. This is measured as the crow flies from the nearest border crossing. You'll need proof of your previous address (utility bills, bank statements, rental contracts).
Criterion 4: Salary threshold
Your taxable salary must meet or exceed the minimum threshold:
| Year | Standard Threshold | Under-30 with Master's Degree |
|---|---|---|
| 2025 | €46,660 | €36,497 |
| 2026 | €48,013 | €36,497 |
| 2027 | €50,436 | TBD |
Important: The threshold is checked against your salary after the 30% deduction. So if the threshold is €48,013, your gross salary needs to be approximately €68,590 (since €68,590 × 70% = €48,013).
Application Process
Step 1: Gather your documents
Collect your employment contract, CV, educational diplomas (with translations if not in Dutch/English), proof of previous residence, and valid ID. Your employer should prepare recruitment documentation.
Step 2: Complete the application form
Download the official form ("Verzoek loonheffingen Expatregeling") from the Belastingdienst website. Both you and your employer must complete and sign the form. Or use our service — we handle the entire form for you.
Step 3: Submit to the Belastingdienst
Send the completed form plus supporting documents to the Dutch Tax Authority. Processing typically takes 4-12 weeks.
Step 4: Receive your decision
If approved, the ruling takes effect from the start of your employment (retroactively, if filed within 4 months of your start date). Your employer adjusts your payroll to apply the 30% exemption.
Required Documents Checklist
From the employee:
- Valid passport or ID
- Complete CV with all work experience
- Educational diplomas and certificates (translated if not Dutch/English)
- Proof of residence abroad for 16+ of last 24 months (utility bills, bank statements, rental contracts)
- Dutch BSN (burgerservicenummer) — if already registered
From the employer:
- Signed employment contract
- Job advertisement / recruitment documentation
- Company registration (KvK number)
- Payroll tax number (loonheffingennummer)
Recent Changes (2024-2027)
The Dutch government has been tightening the ruling:
- 2024: Introduction of the phased reduction plan. New applications approved from January 2024 onwards will see the exemption gradually reduce from 30% to 27%.
- 2025: The ruling was officially renamed "Expatregeling" (Expat Scheme). Stricter enforcement of the "specific expertise" and "recruited from abroad" criteria began in September 2025.
- 2026 (current year): Standard salary threshold increased to €48,013. The Balkenende norm (income cap) is €262,000. Applications continue under the phased schedule.
- 2027 (upcoming): The exemption percentage drops to 27% for new applications. Standard threshold expected to be €50,436.
- For existing rulings: If your ruling was approved before 2024, you remain at the full 30% rate for your entire ruling period. The phase-down only applies to new applications.
Timelines and Deadlines
- When to apply: Within 4 months of the employee's first working day in the Netherlands. Late applications are still possible but the ruling will only take effect from the first day of the month after submission (no retroactive benefit).
- Processing time: Typically 4-12 weeks after submission.
- Duration: Maximum 5 years (60 months), reduced by any time previously spent in the Netherlands.
- Renewal: Not needed — the ruling runs for its full period once approved. However, if you change employers, a new application is required.