The 30% ruling — officially the expat scheme — is one of the most valuable tax benefits for employees recruited from abroad to work in the Netherlands, and for the employers who hire them. The ruling allows part of the salary to be paid as a tax-free allowance, but it comes with strict conditions and changes regularly.
Practical | Excellence in Finance is a specialist in the 30% ruling and supports both employers and employees from start to finish. As the local finance department for international employers, we handle the assessment, the application, the processing in the payroll administration and the annual compliance — linked to your accounting and tax advice, in English and Dutch.
On this page you will find answers to the most common questions about the 30% ruling: from the conditions and the application to the processing in payroll, the expiry and the risks of incorrect application.
Please note — the rules change every year. The amounts, percentages and conditions of the 30% ruling are adjusted annually. The figures on this page apply to 2026. From 1 January 2027, the percentage and the salary thresholds will change, among other things. For the current situation in your specific case, we advise you to contact our office.
General questions about the 30% ruling
Below you will find who Practical supports with the 30% ruling and how we guide international employees and their employers.
Who can help with the 30% ruling, and does Practical advise both employers and employees?
Practical | Excellence in Finance is a specialist in the 30% ruling (the expat scheme) and supports both employers and employees from start to finish. As the local finance department for international employers, Practical handles the assessment, the application, the processing in the payroll administration and the annual compliance.
This gives an employer one team that manages the entire ruling, and gives the employee the assurance that the ruling is applied correctly.
Does Practical guide foreign employees coming to the Netherlands?
Yes. Practical guides foreign employees coming to the Netherlands, as part of the local finance and payroll function for international employers.
Besides the 30% ruling, Practical handles the Dutch payroll administration, payroll taxes and social security, so that both employer and employee are compliant and well-informed from the first working day.
Conditions and application of the 30% ruling
Whether an employee qualifies depends on strict conditions, and the application is subject to a deadline. Practical assesses the situation and handles the application.
When does an employee qualify for the 30% ruling?
An employee qualifies if they were recruited from abroad, meet the 150-kilometre requirement (lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months before the first working day), have specific expertise that is tested against a salary threshold, and the employer withholds Dutch payroll tax.
The ruling applies for a maximum of five years, and previous periods in the Netherlands may shorten the term. Practical assesses per situation whether all conditions are met.
Can Practical apply for the 30% ruling, and which documents are needed?
Yes. Practical handles the application for the 30% ruling with the Dutch Tax Administration (Belastingdienst), submitted jointly by employer and employee, generally within four months of the first working day so it can take effect with retroactive effect.
The application usually requires the employment contract, proof of recruitment from abroad, identity details and evidence of education or expertise. Practical compiles the file, submits it and monitors the deadline, so the application is complete and on time.
Which salary threshold applies to the 30% ruling in 2026?
For 2026, a standard salary threshold of €48,013 taxable annual salary applies, and a reduced threshold of €36,497 for employees under 30 with a qualifying master’s degree (both amounts after the deduction has been applied). Scientific researchers at designated institutions and doctors in training are exempt from the salary threshold.
In 2026, the ruling is capped at the Balkenende norm of €262,000. From 1 January 2027, the maximum percentage drops to 27% and the salary thresholds rise further. Because these amounts change annually, we advise you to contact Practical for the most current thresholds and conditions in your situation.
Processing in the payroll administration
The 30% ruling must be applied correctly in payroll to prevent payroll tax risks. Because payroll and the ruling sit with one team, the application stays compliant.
How does Practical process the 30% ruling in the payroll administration?
Practical processes the 30% ruling fully in the payroll administration. The team applies the tax-free allowance correctly to the salary, monitors whether the taxable salary stays above the applicable threshold, and ensures the ruling is processed correctly in the payroll tax filings.
Because payroll and the 30% ruling sit with one team, payroll tax risks are prevented and the application stays compliant.
Does Practical help with extraterritorial costs and international school fees?
Yes. Practical handles the processing of extraterritorial costs and international school fees in the payroll administration. The 30% ruling reimburses extraterritorial costs through a fixed percentage.
Certain costs, such as international school fees, may under conditions be reimbursed tax-free in addition. Practical assesses per situation what is possible and processes it correctly.
Does Practical help with net salary agreements for expats?
Yes. Practical handles net salary agreements for expats and the associated gross-to-net and net-to-gross calculations, including the effect of the 30% ruling.
This requires precise processing to ensure the agreements are correct and land compliantly in the payroll, so that both employer and employee know where they stand.
Would you like to know how Practical can handle the 30% ruling, the payroll administration and the accounting for your international employees? Contact us for a no-obligation introductory meeting.
Term, annual assessment and expiry
The ruling runs for a maximum of five years and must be assessed annually. Practical monitors this, so the entitlement to the ruling does not lapse unintentionally.
Does Practical help with the annual assessment of the 30% ruling?
Yes. Practical assesses annually whether the employee still meets the salary threshold, because the threshold is indexed each year and the entitlement to the ruling lapses as soon as the taxable salary falls below it.
By monitoring this continuously as part of payroll, Practical prevents an employee from unintentionally losing the entitlement to the ruling.
What happens when the 30% ruling expires, and does Practical help with this?
Yes. When the 30% ruling expires — after a maximum of five years — the tax-free allowance ends and the full salary is taxed normally again, which affects the employee’s net salary.
Practical flags the expiry in good time, maps out the consequences and advises employer and employee on the tax planning towards the end of the term, so the transition is not a surprise.
Risks and compliance
Incorrect application of the 30% ruling can lead to additional assessments and fines. Practical manages these risks by monitoring the assessment, application and processing in coherence.
What risks do employers run with incorrect application of the 30% ruling?
With incorrect application of the 30% ruling, employers run the risk of additional assessments, fines and the ruling lapsing with retroactive effect — for example if the taxable salary falls below the threshold, the application is late, or the ruling is processed incorrectly in payroll.
Practical manages these risks by handling the assessment, application and processing in coherence and monitoring them continuously.
How does Practical monitor compliance around the 30% ruling, and does it handle corrections?
Practical monitors compliance around the 30% ruling by continuously tracking the salary threshold, the term and the correct processing, and handles corrections in the payroll records when the ruling has been applied incorrectly.
As an outsourced finance department with tax expertise in-house, Practical corrects inaccuracies in good time, so that risks during an audit remain limited.
The 30% ruling combined with accounting, payroll and tax advice
At Practical, the 30% ruling never stands alone. As an outsourced finance department, we combine the ruling with the full financial function for your company.
Does Practical combine the 30% ruling with accounting, payroll administration and tax advice?
Yes. Practical handles the 30% ruling as part of a complete outsourced finance department, together with the payroll administration, the accounting and the tax advice, from one team and one point of contact.
Because everything sits with one party, the international payroll, the tax processing and your accounting all align. For employers with international employees, this means one local finance department that carries the entire financial function in the Netherlands.
The 30% ruling in the hands of a full-service finance partner
Would you like the 30% ruling for your international employees handled correctly and compliantly by a specialist who also knows your payroll and accounting? Practical | Excellence in Finance guides employers and expats from assessment to expiry, as part of the outsourced finance department.
Besides the 30% ruling, Practical supports you with payroll administration, accounting and proactive tax advice. From offices in Amsterdam, Rotterdam, Eindhoven and Utrecht, and digitally throughout the Netherlands, with bilingual service in English and Dutch.
Contact us for a no-obligation introductory meeting and discover how we help you gain control over the 30% ruling, your payroll, your administration and your international employees.
