The 30% ruling — tax relief for inbound expat employees

What it is

The 30% ruling lets a Dutch employer pay up to 30% of an eligible inbound employee’s gross salary as a tax-free reimbursement for the extraterritorial costs of moving. In effect, a large chunk of the salary sidesteps income tax.

Not a subsidy. Not something you apply for yourself — the employer applies jointly with you.

Who qualifies

• You were recruited from abroad (or posted to the NL) by a Dutch employer.
• You have specific expertise that is scarce in the Dutch labour market — in practice, demonstrated by meeting the minimum salary threshold (2026: ~€46,660 taxable salary, lower for those under 30 with a Master’s).
• You lived >150km from the Dutch border for at least 16 of the 24 months before starting the role.

What you get

• 30% of gross salary treated as tax-free reimbursement — for the first period.
• Capped at the Balkenende norm (€233,000 in 2026) — above that, the 30% no longer applies.
• Phase-down in effect: 30% for first 20 months → 20% for next 20 months → 10% for final 20 months, over a 60-month total. Employees who entered the ruling before 2024 may have grandfathered terms.
• Option to be treated as a partial non-resident for Box 2/3 purposes — still useful for many.

How the process works

1. Joint application by employer and employee, within 4 months of starting the role, via the Dutch Tax Office (Belastingdienst).
2. Decision within ~10 weeks. If approved, applied retroactively from the start date.
3. Annual re-check that salary still exceeds the threshold. Fall below mid-year → relief lapses for that year.

Why the rules have narrowed

The scheme was originally 30% for 8 years, then 30% for 5 years (2019 reform), then the current 30/20/10 phased structure (2024 reform). A parliamentary majority wanted it cut entirely; the phased version is the compromise.

Plan on current rules, not the old generous version.

Common traps

• Expats assuming the 8-year version still applies to new hires. It doesn’t.
• Startups offering salary packages that look competitive gross but fall just under the threshold — fixable, but needs catching early.
• Using the ruling to justify moves that would fail the 150km rule. Border regions (Belgium/Germany less than 150km away) are excluded.

Who to talk to

A Dutch employment tax advisor, ideally one who handles multiple expat applications a year. Ask specifically about interaction with stock-option taxation (Box 1 vs new Box 1 option scheme) — the interplay is where money gets lost.

Official sources

• Belastingdienst — 30% ruling (employer pages)
• Belastingdienst — 30% ruling (employee pages)

Indicative information only. This is not legal or tax advice. Always verify with the Belastingdienst or a licensed Dutch tax advisor.