The 30% ruling

Tax free allowance of 30 percent

The 30% ruling is a tax advantage for incoming employees who are working in the Netherlands. When the appropriate requirements are met, the employer is allowed to grant a tax free allowance amounting to 30 per cent of the salary which is subject to Dutch payroll tax. The consequence is that the taxable part of the salary is reduced to 70% and on top of that the 30% allowance is paid so that the total stays 100%. The tax free allowance is considered as compensation for extra territorial expenses a foreign employee has for working outside their home country. The employer can also reimburse these extra territorial expenses instead, but to be able to do this, the employee will need to supply all receipts to the employer so that they can be checked and then reimbursed. This is obviously a lot of extra work, especially if it needs to be done for multiple employees. It is therefor more common to apply for the 30% ruling. The 30% allowance will be included in the salary in such a way that the costs for the employer will not be higher, while the employee has a higher net salary.

Job interview expat 30 percent ruling

Benefit of our experience with the 30% ruling!

Expatax can assist with the whole application procedure. We are very experienced with the 30% ruling and its application process as we have many companies as clients for who we take care of all the requests on behalf of their employees. We have more than 15 years experience and have filed thousands of applications with a high success rate.

Specific expertise

To qualify for the ruling the expatriate must be an employee who is hired from abroad or transferred by an employer to work in the Netherlands and who has specific expertise that is scarce or absent on the job market in the Netherlands. 

Salary requirement

For the evaluation of whether an entered employee possesses specific expertise that is scarce or absent on the job market in the Netherlands, a minimum salary requirement was introduced on January 1, 2012. This salary requirement replaced the obligation to prove the level of education and relevant work experience.

Required taxable salary20232022202120202019
Salary excluding allowance must be more than:
(70% salary + 30% allowance = 100% gross)
€ 41,954 (which is gross € 59,935)€ 39,467 (which is gross € 56,382)€ 38,961 (which is gross € 55,659)€ 38,347 (which is gross € 54,781)€ 37,743 (which is gross € 53,919)
For employees under the age of 30 who have a master degree the minimum required taxable salary (70%) is€ 31,891 (which is gross € 45,559)€ 30,001 (which is gross € 42,859)€ 29,616 (which is gross € 42,309)€ 29,149 (which is gross € 41,641)€ 28,690 (which is gross € 40,986)

If you conduct scientific research at a specific research institution, a salary requirement is not applicable. 

Tax free allowance can be less than 30%

Since the law requires a minimum taxable salary and doesn’t mention the gross salary and also states that under the 30% ruling a tax free allowance can be paid of up to 30%, it is possible to reduce the tax free allowance to a lower percentage as such that the minimum required taxable salary is met.

For employers and HR managers we have developed an online secure portal where the progress of each application for the 30% ruling can be followed, documents can be uploaded and downloaded and questions can be asked related to each individual application. You will get the information you are looking for, being able to access the portal 24/7.

Other requirements

There are other requirements that need to be met such as the employee having lived a minimum distance of 150 km from the Dutch border beforehand (during at least 16 months in the 24 months before start of work in the Netherlands). Also relevant is whether or not the employee has previously stayed in the Netherlands. And there are specific rules when the employee changes employer.

You have a valid grant for the 30% ruling. The duration is stated on the grant. If you stop working earlier, the 30% ruling will also stop.

An appendix to the employment agreement must be made. It’s not allowed to split the gross salary mentioned in the employment agreement in a taxable part of 70% and a non-taxable part of 30%. Instead the gross salary must be reduced to 70% on top of which a tax free remuneration of 30% can be paid. Consequence is that all the rights based on the gross salary will be reduced too like pension and social security.

Are you eligible for the 30% ruling?

Do our online survey to find out directly if you qualify for the 30% ruling.


If your 30% ruling is granted after the 1st of January 2019 your grant is valid for a maximum of 5 years.

Related article: Changes to the 30% ruling as of 1 January 2019

If your 30% ruling was granted between the 1st of January 2012 and the 1st of January 2019 the duration of your grant is a maximum of 8 years. Due to a transitional arrangement, the end date of the grant may change, below you can see what your new end date will be. You will not be issued with a new grant stating this, so it is up to you and your employer to keep track of the new end date.

  • End date year on your grant: 2019 or 2020 -> new end date: remains the same as stated on your grant
  • End date year on your grant: 2021, 2022 or 2023 -> new end date: 31st of December 2020
  • End date year on your grant: 2024 or later -> new end date: the end date on your grant minus 3 years 

Tax Plan 2023 – changes to the 30% ruling

The Tax Plan 2023 contains 2 changes for the 30% ruling:

  • as of 2023: an annual choice for application of the 30% ruling or actual extraterritorial expenses.
  • per 2024: a capping measure for incoming employees. Note: for some employees, this measure will only take effect as of 2026.

Related article: Changes related to your payroll administration in 2023

Do you have a question about the 30% ruling?

In our Knowledge Base we answered a lot of questions about the 30% ruling. Topics include the conditions, term, application, tax consequences etc.

Court: 30% ruling 3 months
30% ruling

Court: the 30% ruling can not be continued if the period between end of employment and new employment contract is more than three months

The court ruled that one of the conditions of the 30% ruling is that there must be no more than three months between the end of employment with the old employer and the conclusion of the employment contract with the new employer.

Questions answered in our Knowledge Base

  1. 30% ruling ends when the employee is put on garden leave
  2. Is there a period of minimum stay in the Netherlands to avail the 30% ruling?
  3. Who is a young master for whom a lower salary is required?
  4. What is the deadine for filing the application?
  5. How long will the 30% ruling application take? When will I receive a reply?
  6. When I leave my employer do I get a confirmation from the tax authorities that the 30% ruling ends?
  7. Bank savings and 30% ruling. Foreign bank accounts. What to declare?
  8. 30% ruling and change of employer: granted for 8 or for 5 years?
  9. Where can I get a copy of the 30% ruling confirmation?
  10. Can the 30% ruling be renewed?
  11. Is it possible to get the 30% ruling when I work through my own limited company?
  12. I am young master with 30% ruling. What happens if I become 30? Will the salary requirement be higher?
  13. Is the 30% ruling applicable for dependents? Can the dependent spouse also exchange a foreign driving license?
  14. Can I keep the 30% ruling if I become self employed?
  15. How is the 30% allowance arranged between employer and employee?
  16. What are the consequences for my salary of the 30% tax ruling?
  17. I have been in the Netherlands before. Does this affect the maximum period I can get the 30% ruling?
  18. 30% ruling for a returning expat – how is the 25 year period calculated?
  19. Is the 30% ruling applicable if I have a temporary contract?
  20. Does a new application for the 30% ruling make a chance if a previous application has been rejected in the past (and more specifically, if the regulation changed since then)?
  21. The 150 km distance requirement in the 30%-ruling doesn’t lead to a clear overcompensation according to the Advocate General
  22. How can I prove that I satisfy the 150 km requirement?
  23. 25-years term of the discount scheme of the 30% ruling doesn’t lead to prohibited discrimination
  24. Continuation of the 30% ruling conflicts with the three months requirement
  25. 30% ruling for returning Dutch national
  26. What are the consequences for the unemployment benefit and company pension if I have the 30% ruling?
  27. Can I deduct the mortgage interest for my main residence if I have the 30% ruling?
  28. Can double housing costs be reimbursed tax free besides the 30% ruling?
  29. The 30% ruling is calculated on the wage of present employment. What does this include?
  30. Can the 30% ruling be granted retro active?
  31. Is the 30% ruling applicable on a redundancy payment?
  32. Am I eligible for the 30% ruling?
  33. Which costs can be considered to be extra territorial expenses?
  34. If the employee changes employer should a new 30% application be submitted?
  35. Is it possible to build up a pension on the 30% allowance?
  36. Does the 30% ruling also apply to persons who meet all the conditions but become permanent residents?
  37. Do I lose the 30% ruling if I get the Dutch nationality?
  38. International school fees and the 30% ruling
  39. Can the 30% ruling be applied in the payroll during the application?
  40. Can I still apply for the 30% ruling if I am already in the Netherlands?
  41. What are the conditions to qualify for the 30% ruling?
  42. What has changed with regards to the 30% ruling from January 1, 2012?
  43. Can the 30% ruling be less than 30%?