The 30% ruling
We can assist you with the application of the 30% ruling
The 30% ruling
Conditions
Benefits
Application
The 30% ruling
Conditions
Benefits
Application
Contact
Did you move to the Netherlands to work for a Dutch employer? The Dutch tax office (Belastingdienst) is of the opinion that employees who came to the Netherlands are confronted with extra costs, so-called extraterritorial costs. As compensation for these costs, your employer may give a tax-free allowance for this. The other option is that the employer provides 30% of the wage, including reimbursement, tax-free. This is also known as the 30% ruling. On this page, we further explain the 30% ruling and its benefits.
Did you move to the Netherlands to work for a Dutch employer? The Dutch tax office (Belastingdienst) is of the opinion that employees who came to the Netherlands are confronted with extra costs, so-called extraterritorial costs. As compensation for these costs, your employer may give a tax-free allowance for this. The other option is that the employer provides 30% of the wage, including reimbursement, tax-free. This is also known as the 30% ruling. On this page, we further explain the 30% ruling and its benefits.
Are you eligible for the 30% ruling? Before you can benefit from the tax benefits, you have to apply for the 30% ruling. You and your employer have to agree in writing that the benefit applies to you. We can help you out with the 30% ruling application! You can call us at +31 20 – 2170120 or fill in our contact form.
The 30% ruling is a tax advantage for highly skilled migrants who moved to the Netherlands for a specific employment role. If you are eligible for the 30% ruling, you don’t have to pay tax over 30% of your gross salary in the Netherlands.
Good to know, that as of 1 January 2019, the maximum duration of the 30% ruling is five years, instead of eight years. To be eligible for the 30% ruling, you have to meet certain conditions, which we will discuss later.
The 30% ruling has three benefits besides the tax-free salary part. These are the benefits of the 30% ruling:
1. Tax-free salary part
The main advantage of the 30% ruling is the tax-free salary part. If you benefit from the 30% ruling, your employer may reimburse 30% of your salary tax-free. Your taxable income will be lower, which means that you pay less tax than someone without the 30% ruling.
2. Partial non-resident status
A Dutch tax resident with the 30% ruling can choose to be treated by the Belastingdienst as a partial non-resident taxpayer of the Netherlands. This means that you will be considered as a non-resident taxpayer for boxes 2 and 3. For box 1 income you will still be considered as a resident taxpayer. So, in this case, you don’t have to pay income tax on assets in boxes 2 and 3 (besides real estate located in the Netherlands and substantial interest in a Dutch company) when you file the annual income tax return.
3. Exchange of foreign driver’s license
Another great benefit of the 30% ruling is the possibility to exchange your foreign driver’s license. In most cases, you have to redo your driver’s license test in order to obtain a Dutch driver’s license. If you have the 30% ruling. It is possible to exchange your foreign driver’s license for a Dutch license without redoing the test. And even all of your family members at the same address as the holder of the 30% ruling don’t have to redo the test.
Do you meet all the criteria for the 30% ruling? Then you can benefit from this special tax benefit for expats in the Netherlands. To apply for the 30% ruling, you and your employer have to ask the Belastingdienst permission to make use of the 30% ruling. We are happy to help you apply for the 30% ruling. Fill in our contact form or call us at +31 20 – 2170120.
Talk directly to one of our tax advisors
Could you use some help with the application of the 30% ruling, or other Dutch taxes, like your income tax return or provisional tax return?
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