What Is the 30 Dutch Tax Ruling?
The 30 Dutch tax ruling (officially the “30% ruling” or expat scheme) is a Dutch tax benefit that lets employers pay skilled workers recruited from abroad up to 30% of their gross salary tax-free. In practice, you pay income tax on only 70% of your salary for up to five years.
The tax-free portion is treated as a reimbursement for “extraterritorial costs” such as relocation, housing, and a higher cost of living. It is administered by the Dutch Tax Administration (Belastingdienst).
Quick Answer: 30 Dutch Tax Ruling Key Facts (2026)
- Tax-free allowance: 30% of salary in 2026, dropping to 27% from 1 January 2027
- Duration: Maximum 60 months (5 years)
- Minimum salary (2026): €48,013 gross per year
- Reduced threshold: €36,497 for employees under 30 with a Dutch master’s degree or equivalent
- Salary cap (2026): €262,000, so the maximum tax-free amount is €78,600
- Distance rule: You lived more than 150 km from the Dutch border for at least 16 of the 24 months before starting work
Who Qualifies for the 30 Dutch Tax Ruling?
You must meet all of these conditions:
- Recruited from abroad. A Dutch employer hires you from another country, or your multinational transfers you to the Netherlands.
- Specific expertise. Your skills must be scarce in the Dutch labour market. Meeting the salary threshold satisfies this test.
- Minimum salary. Your taxable salary must reach the annual income standard, which is indexed every year.
- The 150 km rule. You must have lived more than 150 km from the Dutch border for more than 16 of the 24 months before your first working day.
- Employer agreement. You and your employer must sign a joint application.
Your employer must apply within four months of your start date for the ruling to apply from day one. Late applications only take effect from the following month.
How Much Can You Save With the 30 Dutch Tax Ruling?
| Take a gross salary of €80,000 | 30% ruling (2026) | 27% ruling (2027) |
| Tax-free allowance | €24,000 | €21,600 |
| Taxable salary | €56,000 | €58,400 |
The difference is €2,400 in taxable income. At Dutch marginal rates of roughly 37.5% to 49.5%, that costs you about €900 to €1,200 less net income per year. Even at 27%, the ruling still saves most expats several thousand euros annually.
Figures are illustrative. Your exact result depends on your tax bracket, employer, and benefits.
What Changes in 2027?
The Dutch government has reduced the 30 Dutch tax ruling in stages:
- Tax-free rate: Falls from 30% to a flat 27% from 1 January 2027 for those who started from 2024 onward.
- Salary thresholds: They rise again, and employees whose ruling started in 2025 or later face the higher standard.
- Partial non-resident status: The transitional rules for foreign-income taxation end after 2026. From 2027, ruling holders are taxed as full Dutch residents on worldwide income.
- Grandfathering: Employees whose ruling started before 2024 are generally protected by transitional rules.
Which rules apply to you depends on when your ruling first started, not when you applied or signed your contract.
How to Apply for the 30 Dutch Tax Ruling
- Confirm eligibility against the salary and distance rules above.
- Sign the joint request with your employer.
- Your employer submits the application to the Belastingdienst.
- Wait for approval. Processing usually takes a few weeks.
- Payroll applies the ruling once approved, and any back-payment is settled through payroll.
Keep proof of your previous residence, such as rental contracts or municipal registrations, in case the tax office asks for it.
30 Dutch Tax Ruling vs. Actual Expense Reimbursement
Instead of the flat allowance, your employer can reimburse your actual extraterritorial costs tax-free. This needs receipts and only pays off if your real costs exceed the flat percentage. Most expats choose the 30 Dutch tax ruling for its simplicity.
Common Mistakes to Avoid
- Missing the four-month deadline. You lose the retroactive benefit.
- Assuming your salary qualifies forever. If your taxable salary drops below the threshold, the ruling can end.
- Ignoring the salary cap. The benefit stops applying to salary above the cap.
- Not modelling 2027. Use a calculator before accepting a job offer.
Estimate Your Take-Home Pay
The 30 Dutch tax ruling can change your net salary by thousands of euros a year. Use our free Dutch Tax Calculator to see your net income with and without the ruling, and compare 30% against 27%.
Frequently Asked Questions
Is the 30 Dutch tax ruling being abolished?
No. It is being reduced from 30% to 27% from 2027, with higher salary thresholds for newer applicants.
How long does the 30 Dutch tax ruling last?
Up to five years (60 months). Time you previously spent in the Netherlands may be deducted.
What is the minimum salary for the 30 Dutch tax ruling in 2026?
€48,013 gross per year, or €36,497 for employees under 30 with a master’s degree.
Can I apply for the 30 Dutch tax ruling myself?
No. It requires a joint request with your employer, who submits it to the Belastingdienst.
Does the ruling apply to my bonus and holiday allowance?
Generally yes. It applies to your taxable wages, up to the salary cap.
Can freelancers get the 30 Dutch tax ruling?
No. It is only for employees. Self-employed people should look at other schemes.
Conclusion
The 30 Dutch tax ruling is still one of the biggest financial advantages of working in the Netherlands, even with the reduction to 27% in 2027. Check your eligibility early, apply within four months of starting, and model your take-home pay before you sign.
John Keller is the founder of Look Forward Administratie & Advies and a Dutch financial administration and tax advisory specialist. With 25 years of experience helping expats, freelancers, and businesses navigate Dutch payroll, income tax, and the 30% ruling, he combines hands-on advisory experience with a focus on making Dutch tax rules understandable for non-Dutch speakers.
