The 30% ruling
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The 30% ruling
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Conditions
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Benefits
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Application
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The 30% ruling
Follow a manual added link
Conditions
Follow a manual added link
Benefits
Follow a manual added link
Application
Follow a manual added link
Contact
The 30% ruling
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.
What is the 30% ruling
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.
What are the conditions?
- You work for an employer that is registered with the Dutch tax office and pays payroll tax.
- You and your employer have to agree in writing that the 30% ruling is applicable.
- You have to be transferred from abroad or have to be recruited abroad.
- You did not reside within 150km from the Dutch border for the last 18 out of 24 months at the time of hiring.
- Your salary is at least € 37.000,- per annum (special salary norms apply for certain employees younger than 30).
- You need to have an expertise that is scarcely available in the Netherlands.
Benefits of the 30% ruling
The 30% ruling has several benefits besides the tax-free salary part. These are some other benefits of the 30% ruling:
- 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 in Box 2 and 3. For Box 1 income you will still be considered as a resident taxpayer. So, in that case, you don’t have to pay income tax on assets in Box 2 and 3 (besides real estate located in the Netherlands and substantial shareholding in a Dutch BV) when you file the annual income tax return.
- 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 licence 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.
Application 30% ruling
Do you meet all the criteria for the 30% ruling? Then you can benefit 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. You and your employer can ask for permission by filling out the following form: Application income tax and national insurance. We are happy to help you apply for the 30% ruling. Fill in our contact form or give us a call at +31 20 – 2170120.
Help with the application of the 30% ruling
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?
Please, contact us using the details mentioned below.
Fill in our contact form, and we will get in touch
Send your message to + 31 20 – 2170120
Call us on +31 20 – 2170120