If you've moved to the Netherlands for work, there's a good chance you qualify for one of the most generous expat tax benefits in Europe. The 30% ruling lets your employer pay 30% of your salary completely tax-free. Here's what you need to know.
The 30% ruling (in Dutch: 30%-regeling or 30%-faciliteit) is a Dutch tax incentive for highly skilled workers recruited from abroad. It allows your employer to pay you a tax-free allowance of 30% of your gross salary — on top of your regular net pay. The idea is to compensate for the extra costs of moving to and living in another country.
In practice, it means your effective income tax rate drops significantly. On a salary of €80,000, you'd only pay income tax on €56,000. That's a substantial saving — often €5,000–€15,000 per year depending on your salary and situation.
You need to meet three conditions:
Your employer must also be a Dutch payroll entity — they're the ones who apply for it on your behalf.
The ruling applies for a maximum of 5 years. This was reduced from 8 years for new applications from 2019. If you've worked in the Netherlands before, any previous period under the ruling (or time spent in the Netherlands) is deducted from your 5 years.
You don't apply yourself — your employer applies to the Belastingdienst (Dutch tax authority) on your behalf. The key things to know:
If your employer doesn't know about the ruling or seems reluctant to apply — push for it. It costs your employer nothing and it's a standard process for international companies in the Netherlands.
The 30% ruling also gives you partial non-resident taxpayer status. This means you can choose to be taxed as a non-resident for Box 2 and Box 3 income (savings, investments, substantial shareholdings). For many expats this reduces the tax on savings and investments held abroad.
You also get simplified access to exchanging your foreign driving licence for a Dutch one — a small but useful perk.
The 30% ruling has been through several changes in recent years and the rules are still evolving. Key things to be aware of:
Can I still get it if I've already been working in the Netherlands for a few months?
Yes, as long as you're within the 4-month window. Apply as soon as possible — the ruling will apply retroactively to your start date.
What if I change jobs?
The ruling doesn't transfer automatically. Your new employer needs to apply again, but the 5-year clock continues from your original start date. There's a gap allowance of up to 3 months between jobs.
Does it affect my pension or mortgage?
Your gross salary stays the same for mortgage applications and pension calculations — the 30% is paid as a separate allowance. Ask your employer how it's structured on your payslip.
My employer never mentioned it. Is it too late?
If you're still within 4 months of starting — no. If you've been working here longer, it depends on whether any previous stay in the Netherlands affects your eligibility. Worth checking with a tax advisor; the potential saving usually outweighs the cost of advice.
Start with the free 30-day checklist — the right steps in the right order. On the next page, enter your email and download the PDF there (instant — not via email).
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