#expattax

Five myths about the Dutch 30%-ruling in one sentence:

"30% ruling is a tax benefit for highly skilled migrants working for a Dutch company in the Netherlands"

Let's debunk them but first, let's take a look at the benefits of the 30%-ruling and the main requirement for obtaining it.

Why would an expat want to apply for the 30% ruling?

  • up to 30%
     of gross salary is exempt from income tax (5 years max).
    01
  • The holder of the ruling
     and their family can exchange their driver's licenses for local licenses without retaking the exams (saving time, effort, and money).
    02
  • You may* be allowed not to declare until 2024/2026*
    your foreign assets (boxes 2 and 3 of the declaration) and not to pay income tax on them.
    *For those who already had the ruling on Dec. 2023
    03
Examples of income exempt until 2026 for those who already had the ruling on Dec. 2023:
a) dividends, interest, and capital gains from a company in Cyprus/the United States;
b) real estate in Spain and the income from its rent or sale;
c) the balance of your bank and brokerage accounts, cryptocurrencies, etc.
What is the minimum eligibility requirement?
The annual gross* salary must be at least (2025/2026):
  • € 46 660
    *includes holiday pay (vakantiegeld), 13th salary, bonus and payroll taxes
  • € 35 468**
    **for workers under 30 y.o. with a PhD or master's degree
If your gross salary is above the eligibility requirement ("Base") you can get the 30% ruling but your employer will be able to exempt only the excess of this threshold amount from wage tax. E.g. in case you have a gross salary of 50K, you shall deduct from 50K the Base and you will arrive at the exempt amount. The deduction may not exceed 30% of your wage income.

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Which salary will give me the full 30% exemption?

The annual gross* salary (2025/2026) must be at least:

(the eligibility threshold amount divided by 70 and multiplied by 100)
  • € 66 657
    *includes holiday pay (vakantiegeld), 13th salary, bonus and payroll taxes
  • € 50 669**
    **for workers under 30 y.o. with a PhD or master's degree
From 30% to 27% max exemption in 2027?

The maximum exemption will decrease from 30% to 27% for those who have received the 30%-ruling in 2024 or later. The eligibility requirement will also increase to:
  • € 50 436
    *includes holiday pay (vakantiegeld), 13th salary, bonus and payroll taxes
  • € 38 338**
    **for workers under 30 y.o. with a PhD or master's degree

Now, the 5 myths debunked:

  • Myth 1:
    The 30%-ruling is only available to employed workers. I cannot, for example, come to the Netherlands based on a #startup-visa, set up a BV, become its director (#dga) and obtain a 30%-ruling.
  • Reality:
    The 30%-ruling is also available to expat directors-shareholders of Dutch companies (dga). Sources: here and here (we also personally know such DGAs with a 30% ruling).
  • Myth 2:
    The 30%-ruling is only available to workers with a Dutch employment contract.
  • Reality:
    The benefits of the partial non-resident status of the 30%-ruling until recently were also available to individuals whose Dutch resident fiscal partner has a 30%-ruling. However, see a separate Tax Alert on that.
  • Myth 3:
    The 30%-ruling is only available to workers who sign a Dutch employment contract before moving to the Netherlands.
  • Reality:
    Workers who move to the Netherlands from outside a 150-kilometer radius of the Netherlands under certain conditions* have months (and sometimes years(!)) to sign a Dutch employment contract after arriving in order to be eligible for a 30%-ruling. Source

    *it is a more solid case if you have the employment dated before or on arrival in the NL. If you sign the contract after you arrive in the Netherlands there is a chance that you will have to prove to the Dutch Tax Authority that in the period between your arrival and the signing you haven’t acquired a close connection with the NL. We usually evidence that by showing your bond with the country you have left and by indication the lack of substantial assets in the NL. The mere fact that you already acquired BSN or insurance in the NL before signing the contract doesn’t negatively affect your case. Here is the link to the positive case in favor of the taxpayer.
  • Myth 4:
    The 30%-ruling is only available to workers who apply for it within four months from the first day of their employment.
  • Reality:
    The 30%-ruling can be applied for within five years from the first day of your employment, as long as you have met the eligibility requirements both at commencement of the first employment and as of the moment of your application.

    Importantly, the new employment shall begin no later than 3 months after the previous employment is terminated.

    One exception to that is the non-eligible previous employment was part of the university program (you got ECTS credits for it).


  • Myth 5:
    The 30%-ruling is only available to workers who work for a Dutch company.
  • Reality:
    The 30%-ruling is also available to workers who work for a foreign company that is registered with the Dutch tax authorities for social security contributions- and income tax withholding. Source
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