The 30% ruling is an attractive tax scheme for expats working in the Netherlands, but it does not last indefinitely. When the scheme expires, it can significantly impact your financial situation. In this blog, we discuss what happens when your 30% ruling expires and what steps you can take to be well-prepared.
What happens when the 30% ruling expires?
When the 30% ruling expires, the tax-free portion of your salary is removed. This means your entire gross salary will once again be subject to Dutch income tax rates. This could lead to significantly lower net income. Therefore, it is important to review and prepare your financial situation in advance.
For more information about the 30% ruling, visit the official Dutch Tax Administration website.
Key consequences of the 30% ruling expiring
- Higher tax burden: The tax-free 30% portion is removed, leading to higher taxes on your full income.
- Impact on net income: Your monthly post-tax salary will decrease significantly.
- Pension and social premiums: The full salary is once again included in pension and social security contributions, which can be beneficial in the long term.
How to prepare for the 30% ruling expiring
While the expiration of the 30% ruling can have a major impact, proper preparation can help ensure a smooth transition. Here are some steps to take:
- Review your financial planning Contact a financial advisor to evaluate your budget and savings strategy. An advisor can help rebalance your financial situation and address any gaps.
- Explore other tax benefits Although the 30% ruling ends, there may be other tax benefits you can utilize. Consult our tax advisors for advice on potential options.
- Discuss salary adjustments with your employer In some cases, it may be helpful to discuss with your employer whether a salary adjustment is possible to offset the loss of net income.
- Explore additional benefits Some employers offer secondary benefits such as travel allowances, pension contributions, or bonuses to help mitigate the financial impact.
What if you want to continue benefiting from tax advantages?
If you still wish to benefit from tax advantages, it is important to determine whether your current situation meets the criteria of other schemes. More information can be found on the official Dutch government page.
Our experts in payroll administration can assist you with this.
How Practical can help
At Practical | Excellence in Finance, we understand that the expiration of the 30% ruling can be challenging. We offer comprehensive support in tax advice, financial advice, and payroll administration. Our team helps identify alternative benefits and adjust your financial strategy.
Client cases and experiences
Check out our client cases to see how we have helped others with their financial planning after the 30% ruling expired. With offices in Amsterdam, Rotterdam, Eindhoven, and Maartensdijk, we are ready to support you.
Want more information?
Do you have questions about what to do when your 30% ruling expires? Contact our team or request a free quote via Payroll Administration Rate | Practical Accounting Services. Together, we ensure your financial situation remains optimal, even after the ruling ends.
Would you like to know how Practical can help optimize your financial planning? Request a free quote via Payroll Administration Rate | Practical Accounting Services and discover how we can support you. Together, we prepare your financial future!
