30% ruling Netherlands
Make the most of the 30% facility with clear eligibility, fast filing, and compliant payroll, designed for expats and employers.
- One point of contact
- Practical and compliant 30% ruling implementation in one (phasing, caps, annual choice)
- Personal guidance for expats and employers, locally and internationally
The 30% ruling in the Netherlands allows an employer to pay up to 30% of salary tax-free to compensate for cross-border (extraterritorial) costs when you have been recruited from abroad to work in the Netherlands. It is a formal scheme: the employee and employer jointly apply for a decision (beschikking) from the tax authorities; once granted, payroll applies the allowance. The ruling generally runs for a maximum of 60 months. For 2025 and 2026, the maximum tax-free percentage remains 30% for the full period (60 months). From 1 January 2027, this maximum will be reduced to 27% for the entire term.
The 30% ruling is particularly relevant for expats comparing offers for English-language roles in the Netherlands. The ruling can significantly increase net pay during their stay. Employers often use it to offer a competitive compensation package, especially compared with the Dutch minimum wage and local cost of living.
Who qualifies, what you actually get, and key limits
How it works in practice
Application: Employee and employer file the request for a decision. Once approved, payroll applies the facility from the agreed start and records the yearly choice (30% vs actual ET-costs). Employers are not obliged to grant the full 30%; they may apply a lower percentage.
Changing employer: The ruling does not auto-transfer. If you change jobs within the five-year window, the new employer and the employee submit a new request within the stated timeframe; the original remaining term still caps the total duration.
Why employers care: For teams hiring highly skilled migrant talent, the facility offers a structured, compliant way to increase net pay without handling many small receipts. It also creates a predictable offer framework for candidates comparing English speaking jobs Netherlands across cities and sectors.
Practical for 30% ruling advice
Choosing the right partner for the 30% ruling Netherlands can be the difference between a smooth approval and costly corrections. Practical brings tax advice + salary administration together, so 30% ruling expats and highly skilled migrant employers get one coordinated process, from eligibility to payroll.
- End-to-end 30% ruling support: eligibility check, application drafting, Belastingdienst decision follow-up, and payroll setup that correctly applies phasing (30/20/10), caps, and the annual choice (30% allowance or actual ET-costs).
- One point of contact for tax and payroll: our tax advisor and salary administration team work as one, so employer changes, renewals, and mid-year updates are processed without gaps.
- Optimised net pay, fully compliant: we align your ruling with offer terms and local benchmarks like the minimum wage Netherlands, while safeguarding compliance and documentation.
- Proactive monitoring: reminders for deadlines, decision end dates, wage thresholds, and any rule change, so you stay ahead and avoid rework.
Get started today
Have questions about the 30% ruling or need help with payroll administration? Request a free quote via Payroll Administration Rate | Practical Accounting Services and let us
configure your ruling correctly from day one. Prefer to see how our team keeps your payroll compliant every month? Explore our Salary Administration service.
Frequently asked questions
Is the employer obliged to pay 30%?
No. The employer may pay up to 30% tax-free and may choose a lower percentage,agree this in writing.
Can I combine the 30% allowance with actual exterritorial costs?
Not fully. You choose: either apply the facility or reimburse actual costs.
How long does it last in practice?
Up to 5 years, with phased percentages for new cases since 2024. Specific transitional rules may apply to older decisions.
What documents do we need?
Typically: employment contract, proof of being recruited from abroad, salary evidence, and the employer statement in the application.
Does it affect mortgages or benefits?
Many expats use the ruling to increase net income during assignment; related financial implications (e.g., affordability) are case-specific, contact us.
Calculate your rate
To gain insight into your business, we’ll ask a few questions. If the non-binding proposal you receive is suitable, we can provide you with immediate access to your accounting records.
Benieuwd naar wat wij voor u kunnen betekenen?
Neem contact op met één van onze specialisten en laat al uw vragen beantwoorden.