In this guide
I still remember the look on my face when I first saw my Dutch payslip and realised how much of my salary was going to the Belastingdienst. If only I had known about the 30% ruling sooner. Over the past decade, I have helped dozens of expat clients manage this tax benefit – and I have watched the rules change more times than I can count. This guide breaks down everything you need to know about the 30% ruling in 2026: who qualifies, how to apply, what has changed, and how to avoid the mistakes I see people make every year.
Want to skip straight to the numbers? Use my 30% ruling calculator to see exactly how much you could save based on your gross salary and when your ruling starts. It accounts for the 2024 step-down model, so the figure you get is realistic – not the old flat-30% estimate that is now outdated for most new applicants.
What is the 30% Ruling?
The 30% ruling (30%-regeling) allows qualifying employers to pay up to 30% of an employee’s gross salary as a tax-free allowance. This allowance is intended to cover the “extraterritorial costs” of living abroad, such as:
- Higher cost of living compared to the home country
- Double housing costs during the transition
- Travel to and from the home country
- Cost of maintaining ties abroad
- Language courses and cultural adaptation expenses
In practice, you do not need to prove these expenses. The 30% is a flat allowance applied to your gross salary, and it is not taxed as income.
A Simple Example
Consider an expat earning a gross annual salary of EUR 80,000:
| Without 30% Ruling | With 30% Ruling |
|---|---|
| Taxable income: EUR 80,000 | Taxable income: EUR 56,000 (70% of EUR 80,000) |
| Tax-free allowance: EUR 0 | Tax-free allowance: EUR 24,000 (30% of EUR 80,000) |
| Approximate income tax: EUR 29,500 | Approximate income tax: EUR 18,300 |
| Net income: ~EUR 50,500 | Net income: ~EUR 61,700 |
In this example, the 30% ruling saves approximately EUR 11,200 per year in income tax. Over the full 5-year duration, that amounts to over EUR 56,000 in savings.
Note: These figures are simplified illustrations. Your actual tax savings depend on your specific salary, deductions, and applicable tax rates. The phased reduction introduced in 2024 also affects the calculation (see below).
Eligibility Criteria
The 30% ruling is not available to everyone. You must meet all of the following conditions:
1. Recruited or Transferred from Abroad
You must have been recruited from outside the Netherlands or transferred to the Netherlands by your employer. The key requirement is the 150-kilometer rule: you must have been living more than 150 kilometers from the Dutch border for at least 16 of the 24 months before your Dutch employment started.
This means that if you were already living in the Netherlands, Belgium, western Germany, or Luxembourg when you started your Dutch job, you likely do not qualify.
2. Specific Expertise
You must possess specific expertise that is scarce or not readily available in the Dutch labor market. In practice, this is demonstrated by meeting the salary threshold (see below). The Belastingdienst considers the salary test as the primary indicator of specific expertise for most applicants.
3. Minimum Salary Threshold (2026)
Your taxable salary (after the 30% reduction) must meet or exceed the minimum threshold:
| Category | Approximate Annual Taxable Salary (2026) |
|---|---|
| Standard applicants (30 and older) | EUR 46,107 |
| Applicants under 30 with a qualifying master’s degree | EUR 35,048 |
| Scientific researchers at designated institutions | No minimum threshold |
These figures are adjusted annually for inflation. Always check the latest thresholds on the Belastingdienst website or with your tax advisor.
To work out the required gross salary, divide the threshold by 0.7. For the standard threshold: EUR 46,107 / 0.7 = approximately EUR 65,867 gross annual salary.
4. Employer Must Be a Withholding Agent
Your employer must be registered as a withholding agent with the Dutch Tax Authority. Virtually all Dutch employers with employees meet this requirement.
5. Written Agreement
You and your employer must have a written agreement that the 30% ruling will be applied, and the employer and employee must jointly submit the application.
Minimum Salary Requirements for 2026
The salary threshold is one of the most misunderstood parts of the 30% ruling, so I want to spell it out clearly. The threshold applies to your taxable salary – meaning the salary after the 30% allowance has already been removed. To find out what gross salary you actually need, you must divide the threshold by 0.7.
2026 Thresholds at a Glance
| Category | Minimum Taxable Salary (after 30% deduction) | Minimum Required Gross Salary |
|---|---|---|
| Standard applicants (age 30+) | EUR 46,107 | ~EUR 65,867 |
| Under 30 with qualifying master’s degree | EUR 35,048 | ~EUR 50,069 |
| Scientific researchers at designated institutions | No minimum | N/A |
These figures are adjusted annually in line with statutory minimum wage changes. The Belastingdienst publishes the updated amounts each January.
The Under-30 Master’s Degree Exception
If you are under 30 years old and hold a master’s degree (or equivalent) from a recognised institution, the lower threshold of EUR 35,048 (taxable) applies. This is a meaningful discount: it opens the ruling to junior professionals in tech, finance, and the sciences who might otherwise fall just short on salary.
The degree must be genuine and verifiable. The Belastingdienst does not maintain a fixed list of recognised institutions, but degrees from accredited universities in EU/EEA countries, the UK, the US, Canada, and Australia are routinely accepted. Unusual or non-accredited qualifications may require additional documentation.
What Counts as Salary for the Threshold Test?
The threshold is assessed against your employment income – your base salary and any fixed contractual allowances. Variable elements such as bonuses, overtime pay, and profit-sharing are generally excluded from the threshold calculation, though they are included in the overall salary for tax purposes once the ruling is active. This means a variable-heavy package (e.g., base EUR 60,000 plus a EUR 20,000 annual bonus) may look fine on paper but only just clear the threshold on the base salary test.
If your salary is close to the boundary, ask your employer to include a fixed monthly allowance in the contract rather than relying on discretionary bonuses to make up the difference.
How to Apply
The application process is simple, but timing matters.
Step 1: Check Eligibility
Before applying, verify that you meet all criteria: the 150-kilometer rule, the salary threshold, and the recruitment-from-abroad requirement. If you are unsure, consult a tax advisor.
Step 2: Joint Application
The application must be submitted jointly by you and your employer. In practice, many employers handle the process through their HR or payroll department, or through a tax advisory firm.
You submit the application to the Belastingdienst (Dutch Tax Authority) using the designated form.
Step 3: Timing
You should apply within 4 months of starting your Dutch employment. If you apply later, the ruling will only take effect from the first day of the month following the application, rather than retroactively from your start date. This means late applications cost you money.
Step 4: Processing Time
The Belastingdienst typically processes applications within 2-4 months. During this processing period, your employer can already apply the 30% tax-free allowance in your payroll on a provisional basis.
Step 5: Receive the Decision
You will receive a formal decision (beschikking) from the Belastingdienst confirming whether the ruling is granted and for which period.
Recent Changes and the Phased Reduction
The 30% ruling has undergone several significant changes in recent years. Understanding the timeline is important, because different rules may apply depending on when your ruling started.
Historical Changes
- Before 2012: The ruling could last up to 10 years
- 2012: Duration reduced to 8 years
- 2019: Duration reduced to 5 years (with transitional arrangements for existing holders)
- 2024: Introduction of a phased reduction (see below)
The 2024 Phased Reduction
Starting January 1, 2024, the Dutch government introduced a step-down model for the 30% ruling:
| Period | Tax-Free Percentage |
|---|---|
| Months 1-20 (first 20 months) | 30% |
| Months 21-40 (next 20 months) | 20% |
| Months 41-60 (final 20 months) | 10% |
This means that the benefit decreases over the 5-year period. For new applicants, the effective average tax-free percentage over 5 years is 20%, not 30%.
Transitional Rules
Expats who already had an active 30% ruling before January 1, 2024, may be entitled to transitional provisions that preserve the original 30% rate for the full duration of their ruling. The specifics depend on when your ruling was granted and when your employment started. This is an area where professional tax advice is strongly recommended.
Proposed Changes for 2027 and Beyond
The Dutch government has debated further modifications to the ruling, including proposals to cap the ruling at the “Balkenende norm” (the salary ceiling for public sector employees, approximately EUR 233,000 in 2026) and to limit the maximum tax-free percentage to 27%. These proposals have been politically contentious.
As of early 2026, the exact rules for 2027 remain subject to legislative approval. If you are making decisions based on the 30% ruling, check the latest status with the Belastingdienst or a qualified tax advisor.
The 30/20/10 Step-Down: Year-by-Year Breakdown
For anyone who started their ruling on or after 1 January 2024 – which is now the majority of active holders – the benefit is no longer a flat 30% for five years. Instead it steps down across three phases. I think of it as three distinct chapters in your tax story.
The Three Phases
| Phase | Months | Tax-Free Percentage | Notes |
|---|---|---|---|
| Phase 1 | Months 1–20 (~years 1 and 2) | 30% | Maximum benefit; best time to build savings |
| Phase 2 | Months 21–40 (~years 3 and 4) | 20% | Noticeable drop; plan ahead |
| Phase 3 | Months 41–60 (year 5) | 10% | Minimal benefit; consider optimising pension/investments before expiry |
The phases are based on calendar months of actual employment under the ruling, not calendar years. If you have breaks in employment, the clock pauses.
What This Means in Practice
Using a gross annual salary of EUR 100,000 as an example:
| Phase | Tax-Free Allowance | Taxable Salary | Approximate Income Tax | Approximate Annual Saving vs No Ruling |
|---|---|---|---|---|
| Phase 1 (30%) | EUR 30,000 | EUR 70,000 | ~EUR 24,500 | ~EUR 14,800 |
| Phase 2 (20%) | EUR 20,000 | EUR 80,000 | ~EUR 28,500 | ~EUR 10,800 |
| Phase 3 (10%) | EUR 10,000 | EUR 90,000 | ~EUR 32,200 | ~EUR 7,100 |
Approximate figures using 2026 tax rates. Actual tax depends on deductions, credits, and social contributions.
Over the full five years, this hypothetical expat on EUR 100,000 saves roughly EUR 66,200 total under the step-down model – still substantial, but materially less than the ~EUR 74,000 they would have saved under the old flat-30% rules.
Implications for Financial Planning
The step-down means your take-home pay will decrease in month 21 and again in month 41, even if your gross salary stays the same. I strongly recommend:
- Months 1–20: Maximise contributions to voluntary pension savings (lijfrente) and build emergency reserves
- Months 21–40: Reassess mortgage payments and discretionary spending against the lower net income
- Month 41+: Consider whether it makes sense to leave the Netherlands before year 5 or to optimise Box 3 assets if you plan to stay after the ruling expires
Use my 30% ruling calculator to model all three phases against your actual salary.
Tax Savings Calculation by Salary Level
To give you a realistic picture of the financial impact, here is how the 30% ruling affects take-home pay at various salary levels. These calculations use 2026 approximate tax rates and apply the first-20-months rate of 30%.
| Gross Annual Salary | Taxable Without Ruling | Taxable With 30% Ruling | Approximate Annual Tax Saving |
|---|---|---|---|
| EUR 70,000 | EUR 70,000 | EUR 49,000 | ~EUR 8,500 |
| EUR 80,000 | EUR 80,000 | EUR 56,000 | ~EUR 11,200 |
| EUR 100,000 | EUR 100,000 | EUR 70,000 | ~EUR 14,800 |
| EUR 120,000 | EUR 120,000 | EUR 84,000 | ~EUR 17,500 |
| EUR 150,000 | EUR 150,000 | EUR 105,000 | ~EUR 21,000 |
These are simplified estimates. Actual savings depend on your specific deductions, tax credits, and the applicable marginal tax rates. The savings in months 21-40 and 41-60 will be lower due to the phased reduction.
Partial Non-Resident Status (Box 3) Explained
This is the benefit I think most expats underestimate, so I want to explain it properly.
How Box 3 Normally Works
The Netherlands taxes savings and investments under Box 3. Rather than taxing actual investment returns, the Dutch system imputes a notional return on your assets and taxes that at 36% (2026 rate). For example, if you have EUR 200,000 in savings and investments, the system assumes a return of roughly 5.37% (the 2026 rate for larger assets), giving a notional income of EUR 10,740, on which you pay 36% tax – roughly EUR 3,866 per year.
What Changes With Partial Non-Resident Status
When you hold the 30% ruling and elect partial non-resident status, you are treated as a non-resident for Box 3 purposes. This means only Dutch-sourced assets – primarily Dutch real estate – are included in your Box 3 assessment. Everything else is excluded entirely.
Concrete Examples
Example 1: British expat with UK savings account
- Savings in Barclays UK: EUR 150,000
- Dutch Box 3 tax without partial non-resident status: approximately EUR 2,500/year
- Dutch Box 3 tax with partial non-resident status: EUR 0 (foreign savings excluded)
- Annual saving: ~EUR 2,500
Example 2: German expat with investment portfolio
- Share portfolio held at a German broker: EUR 300,000
- Dutch Box 3 tax without partial non-resident status: approximately EUR 5,800/year
- Dutch Box 3 tax with partial non-resident status: EUR 0 (foreign investments excluded)
- Annual saving: ~EUR 5,800
Example 3: American expat with a US brokerage account and a Dutch apartment
- US brokerage account: EUR 250,000
- Dutch apartment (owner-occupied): excluded from Box 3 (taxed under Box 1 instead)
- Dutch Box 3 tax without partial non-resident status: approximately EUR 4,800/year on the US portfolio
- Dutch Box 3 tax with partial non-resident status: EUR 0 (US assets excluded; Dutch property not in Box 3 anyway)
- Annual saving: ~EUR 4,800
What is NOT Excluded
Partial non-resident status does not shelter Dutch assets. If you own Dutch rental property, Dutch investment accounts, or hold a substantial stake in a Dutch company (Box 2), those remain taxable. The benefit is specifically for foreign savings and investments.
How to Elect the Status
You elect partial non-resident status in your annual Dutch tax return (aangifte inkomstenbelasting). There is a specific checkbox in Box 3 for “partial non-resident taxpayer” status for 30% ruling holders. Your tax software or tax advisor will guide you through this. It is not automatic – you must actively choose it each year.
If you are unsure whether the election is beneficial in your case (for example, if you own Dutch investment property and little else abroad), run the numbers with your tax advisor before filing. In most situations where foreign assets exceed EUR 50,000, the election is clearly worth making.
For managing foreign accounts and transferring money internationally, a multi-currency account like Wise → keeps costs down when moving funds between your Dutch and home-country accounts.
The 30% Ruling and Divorce: What Happens?
This is a topic that comes up more often than you might expect. Relationships end, circumstances change, and people want to know whether their tax ruling survives.
The Short Answer
Divorce does not end your 30% ruling. The ruling is tied to your employment contract, not your personal or marital status. As long as you continue to work for the same employer, meet the salary threshold, and remain employed in the Netherlands, the ruling continues unaffected.
The Complications
Salary Threshold After Separation
In some divorce scenarios, income can shift. If you agree to reduce your working hours, take unpaid leave, or change roles as part of a separation agreement, your salary may drop below the minimum threshold. If your taxable salary falls below EUR 46,107 (or EUR 35,048 for the under-30 master’s track), the ruling lapses – and once it lapses due to insufficient salary, it cannot be reinstated.
I have seen this happen to clients who negotiated part-time arrangements thinking it would give them flexibility during a difficult period, without realising the ruling would be at risk. If your gross salary is going to drop significantly, calculate the post-ruling impact on your net income first.
Your Partner’s Ruling
If your partner was benefiting from a 30% ruling in their own name through their own employer, that ruling is entirely separate from yours. Divorce has no effect on it. However, if your partner was not employed and had no ruling of their own, they have no independent claim to the benefit – it was yours through your employment.
Box 3 After Separation
If you were electing partial non-resident status for Box 3, this continues as long as you hold the ruling. However, the divorce settlement may change what assets you own. For example, if you receive Dutch real estate as part of the settlement, those assets enter your Box 3 picture even though foreign assets remain excluded.
Changing Employer After Divorce
If a separation results in relocation or a job change, remember the standard transfer rules: no gap of more than 3 months, and your new employer must submit the application within 4 months. The same rules apply regardless of the personal circumstances that prompted the move. See the FAQ section below for more detail on employer changes.
Practical Advice
If you are going through a separation and have questions about the impact on your 30% ruling, consult a tax advisor who specialises in expat taxation before finalising any employment or salary arrangements. The ruling can survive divorce cleanly – but it requires some care to make sure nothing in the settlement inadvertently triggers a lapse.
Additional Benefits of the 30% Ruling
Beyond the direct tax savings, the 30% ruling provides several other advantages:
1. Partial Non-Resident Taxpayer Status (Box 2 and Box 3)
Holders of the 30% ruling can choose to be treated as partial non-resident taxpayers for Box 2 (income from substantial shareholding) and Box 3 (income from savings and investments). This means:
- Box 3 exemption: You are not taxed on worldwide savings and investments, only on Dutch real estate holdings. For expats with significant savings or investment portfolios abroad, this can be extremely valuable.
- Box 2 treatment: Only taxed on Dutch substantial shareholdings, not foreign ones.
This benefit alone can save thousands of euros per year for expats with substantial savings or investment accounts in their home country.
For a deeper explanation with examples, see the dedicated section below: Partial Non-Resident Status (Box 3) Explained.
2. Dutch Driving License Exchange
With the 30% ruling, you can exchange your foreign driving license for a Dutch one without taking driving lessons or exams. This applies even if your home country does not have an exchange agreement with the Netherlands. Without the 30% ruling, expats from many countries must retake the full Dutch driving exam, which is expensive and has a high failure rate.
3. International School Tax Deduction
The cost of international schooling for your children can be considered part of the extraterritorial expenses covered by the ruling. Discuss the specifics with your tax advisor.
Common Mistakes to Avoid
1. Applying Too Late
Missing the 4-month application window costs you money. Apply as soon as possible after starting employment. Set a reminder and follow up with your employer’s HR department.
2. Salary Just Below the Threshold
If your gross salary is close to the threshold, negotiate with your employer to ensure you qualify. A small salary increase can unlock tens of thousands of euros in tax savings over the ruling period.
3. Ignoring the Phased Reduction in Financial Planning
Do not assume 30% for the full 5 years. With the phased reduction, your effective benefit decreases over time. Factor this into long-term financial decisions like housing and savings targets.
4. Not Considering the Impact on Pension Contributions
Because the 30% allowance reduces your taxable salary, it can also reduce employer pension contributions that are calculated as a percentage of taxable salary. Discuss this with your employer to understand the full picture.
5. Forgetting to Reapply When Changing Employers
If you switch jobs, you must ensure continuity. The gap between employers cannot exceed 3 months, and your new employer must submit a fresh application. Coordinate this well in advance of your last day at your current job.
The 30% Ruling and Your Broader Financial Picture
The 30% ruling does not exist in isolation. It interacts with other aspects of your financial life in the Netherlands:
Mortgage Applications
Dutch banks consider your salary after the 30% ruling when assessing mortgage eligibility. Some banks use your full gross salary, while others use the reduced taxable amount. Since the ruling has a limited duration, banks may also stress-test your ability to afford the mortgage after the ruling expires. Discuss this with a mortgage advisor who has experience with expat clients.
Social Security and Benefits
Your social security contributions are based on your taxable salary (after the 30% reduction). This means lower contributions during the ruling period, which can affect entitlements like unemployment benefits (WW) and disability benefits (WIA). The impact is usually modest but worth understanding.
Retirement Planning
With lower taxable income during the ruling period, your pension accrual may be lower. Consider supplementing with private pension savings or investments. This is particularly important if you plan to stay in the Netherlands long-term.
For help managing international finances during your time in the Netherlands, a multi-currency account like Wise can be useful for handling money in multiple countries. See our complete guide to moving to the Netherlands in 2026 for more on setting up your financial life.
Want to know how much you could save? Use our 30% ruling calculator to estimate your tax benefit based on your salary, or run your figures through the salary checker to see your net take-home pay. For a broader picture of how Dutch taxes work, our Dutch tax system guide for expats explains the full three-box structure.
Manage Your International Finances with Wise
Step-by-Step: What to Do When You Arrive
Here is a practical timeline for managing the 30% ruling alongside your other arrival tasks:
- Before arrival: Confirm with your employer that they will apply for the 30% ruling and ensure your salary meets the threshold
- Week 1: Register at your gemeente and receive your BSN (see our relocation guide)
- Week 1-2: Provide your BSN to your employer for the 30% ruling application
- Month 1: Employer submits the joint application to the Belastingdienst (within the 4-month window)
- Month 1-2: Employer can begin applying the 30% reduction provisionally in your payslip
- Month 2-4: Receive the formal decision from the Belastingdienst
- First tax year: File your annual tax return by May 1 of the following year, claiming the partial non-resident status if beneficial. Use our Dutch tax return checklist for expats to make sure you have everything you need before you start
Do You Need a Tax Advisor?
For simple cases – a single employee with one Dutch employer and no foreign income or assets – the 30% ruling can be managed by a knowledgeable HR department without a separate tax advisor.
However, a specialist expat tax advisor is strongly recommended if:
- You have income from multiple countries
- You own property abroad
- You have significant savings or investments in foreign accounts
- Your partner also works in the Netherlands
- You are a business owner or have freelance income
- You want to optimise the interaction between Box 1, Box 2, and Box 3 taxation
- You are dealing with the transitional rules from before 2024
A good expat tax advisor typically charges EUR 150-500 for an initial consultation and EUR 300-800 for annual tax filing assistance. Given the amounts at stake with the 30% ruling, this is generally a worthwhile investment.
Frequently Asked Questions
What percentage is the 30% ruling in each year?
For applicants who started on or after 1 January 2024, the percentage steps down across the five-year period: 30% for months 1–20, 20% for months 21–40, and 10% for months 41–60. This 30/20/10 model replaced the old flat-30% structure. Expats who held an active ruling before 1 January 2024 may be protected by transitional rules that preserve their original 30% rate – but each case depends on the exact start date and circumstances.
The effective average over the full five years under the step-down model is 20%, not 30%. This distinction matters enormously for financial planning. Use my 30% ruling calculator to model the actual impact year by year.
What is the minimum salary for the 30% ruling in 2026?
The minimum taxable salary (after the 30% reduction has been applied) is:
- EUR 46,107 for standard applicants aged 30 and over
- EUR 35,048 for applicants under 30 who hold a qualifying master’s degree
- No minimum for scientific researchers at designated institutions
To find the required gross salary, divide by 0.7:
- Standard: EUR 46,107 ÷ 0.7 = ~EUR 65,867 gross
- Under-30 master’s track: EUR 35,048 ÷ 0.7 = ~EUR 50,069 gross
These thresholds are updated annually by the Belastingdienst. Always check the current figures before applying.
Does the 30% ruling apply to Box 3 wealth tax?
Yes – and this is one of the most valuable aspects of the ruling that many expats overlook. When you hold the 30% ruling, you can elect partial non-resident taxpayer status, which excludes all foreign savings and investments from Dutch Box 3 wealth tax. Only Dutch-sourced assets (primarily Dutch real estate) remain in scope.
A concrete example: an expat with EUR 200,000 in a UK savings account would normally pay approximately EUR 3,800/year in Dutch Box 3 tax on that amount. With partial non-resident status, they pay nothing on those UK savings. The election must be made actively in your annual tax return – it is not automatic.
See the full Partial Non-Resident Status section above for detailed examples.
What happens to the 30% ruling if I get divorced?
Divorce does not end your 30% ruling. The ruling is attached to your employment, not your marital status. As long as your employment continues, your salary stays above the threshold, and you remain in the Netherlands, the ruling is unaffected.
The key risk is a post-divorce salary reduction. If reduced hours or a role change pushes your gross salary below ~EUR 65,867 (standard threshold), the ruling lapses. Once lost for insufficient salary, it cannot be reinstated. Your ex-partner’s own ruling (if they had one through their employer) is entirely separate and unaffected.
Can I still get the 30% ruling if I change employers?
Yes. You can transfer the ruling to a new employer with three conditions:
- The gap between jobs must not exceed 3 months
- Your new employer must submit the application within 4 months of your new start date
- Your new salary must still meet the current year’s minimum threshold
The remaining duration of your original 5-year period carries over. It does not restart from zero with a new employer. Coordinate the transfer carefully – I have seen people lose their ruling because the new employer’s HR team was slow to file the application.
Final Thoughts
The 30% ruling remains one of the most significant financial advantages of working in the Netherlands as an expat. Even with the phased reduction introduced in 2024, the tax savings over a 5-year period can amount to tens of thousands of euros.
The key is to act early: negotiate your salary with the threshold in mind, ensure your employer submits the application within 4 months of your start date, and seek professional tax advice for complex situations.
If you are planning your move to the Netherlands, our complete guide to moving to the Netherlands in 2026 covers all the other key steps, from visas and housing to health insurance and banking. And if you are ready to start learning the language, check out the best apps for learning Dutch in 2026.
Frequently Asked Questions
What is the 30% ruling in the Netherlands?
The 30% ruling is a Dutch tax benefit for highly skilled migrants recruited from abroad. It allows your employer to pay up to 30% of your gross salary as a tax-free allowance, intended to compensate for the additional costs of relocating to and living in the Netherlands. This effectively reduces your taxable income by 30%, resulting in significant tax savings.
What is the minimum salary for the 30% ruling in 2026?
In 2026, the minimum taxable salary (after applying the 30% reduction) is EUR 46,107 per year for standard applicants aged 30 and over. For employees under 30 who hold a qualifying master's degree, the reduced threshold is EUR 35,048. Scientific researchers at designated institutions face no minimum threshold. These figures are adjusted annually by the Belastingdienst. To find the required gross salary, divide the taxable threshold by 0.7: EUR 46,107 / 0.7 = approximately EUR 65,867 gross.
What percentage is the 30% ruling in each year?
For applicants who started their ruling on or after 1 January 2024, the tax-free percentage is not a flat 30% for the full five years. It steps down in three phases: 30% for the first 20 months, 20% for months 21 to 40, and 10% for the final 20 months (months 41 to 60). This gives an effective average of 20% over the full five-year period. Expats who had an active ruling before 1 January 2024 may be protected by transitional rules that preserve the original 30% rate.
Does the 30% ruling apply to Box 3 wealth tax?
Yes, indirectly and very favourably. Holders of the 30% ruling can elect partial non-resident taxpayer status, which means they are exempt from Dutch Box 3 wealth tax on foreign savings and investments. Only Dutch real estate is included in their Box 3 assessment. Foreign bank accounts, share portfolios, and savings held abroad are entirely outside the Dutch tax net for the duration of the ruling. This can be worth thousands of euros per year for expats with meaningful savings or investments at home.
What happens to the 30% ruling if I get divorced?
Divorce does not automatically end your 30% ruling. The ruling is tied to the employment relationship, not your personal circumstances. However, if your salary drops below the minimum threshold as part of a divorce settlement (for example, due to reduced hours or a career change), the ruling can lapse. Your ex-partner's 30% ruling status is entirely separate and will depend on whether they hold their own ruling in their own name through their own employer.
Can I still get the 30% ruling if I change employers?
Yes. You can transfer the 30% ruling to a new employer, provided there is no gap longer than 3 months between jobs and your new employer submits a fresh application within 4 months of your new start date. The remaining duration of your original 5-year period carries over — it does not restart. Your new salary must also still meet the current year's minimum threshold.
How long does the 30% ruling last?
The 30% ruling applies for a maximum of 5 years (60 months). This was reduced from 8 years in 2019. Time previously spent living or working in the Netherlands may be deducted from this 5-year period. For applicants from 1 January 2024, the benefit also steps down from 30% to 20% to 10% across the five years. Transitional rules may apply if your ruling predates 2024.
Can I apply for the 30% ruling if I am already living in the Netherlands?
No. One of the key requirements is that you must be recruited or transferred from abroad. Specifically, you must have been living more than 150 kilometres from the Dutch border for at least 16 of the 24 months before your Dutch employment started. If you were already living in the Netherlands when you were hired, you do not qualify.
What happens to the 30% ruling if I leave and return to the Netherlands?
If you leave the Netherlands and return, you may still be eligible for the remaining duration of your original 30% ruling period, provided you return within the validity window and meet all other conditions. However, each case is assessed individually by the Belastingdienst. Breaks in residence and employment can complicate the situation, so consult a tax advisor before making decisions.
Should I hire a tax advisor for the 30% ruling?
While it is possible to handle the 30% ruling application through your employer's HR department, hiring a tax advisor who specialises in expat taxation is strongly recommended if your situation involves income from multiple countries, a partner who also works, investment income, or real estate abroad. A good tax advisor typically costs EUR 150-500 for an initial consultation and can save you thousands in optimised tax planning.