The 30% Ruling in the Netherlands

The Dutch expat scheme, commonly known as the 30% ruling, allows employers to pay qualifying employees part of their salary as a tax-free allowance for the additional costs of working outside their home country.

The scheme can apply to employees recruited from abroad and, under certain conditions, to professionals employed by their own BV. TaxGate assists with eligibility assessments, applications and continuation requests when changing employers or starting a business.

How does the 30% ruling work?

In 2026, an employer can pay up to 30% of an employee’s salary, including the allowance, tax-free. The remaining taxable salary must meet the applicable salary threshold. Qualifying for the ruling therefore does not necessarily mean that the full 30% can be paid tax-free.

The allowance is calculated over annual remuneration of up to €262,000 in 2026, giving a maximum annual tax-free allowance of €78,600. The cap is adjusted where the ruling applies for only part of the year.

The ruling is available for a maximum of five years. Previous periods of residence or work in the Netherlands may reduce this period.

Who qualifies?

Eligibility depends principally on recruitment from abroad, previous residence, salary and employment.

You must generally have been recruited from outside the Netherlands. During more than 16 of the 24 months before your first working day in the Netherlands, you must have lived more than 150 kilometres from the Dutch border.

For 2026, your annual taxable salary, excluding the tax-free allowance, must exceed:

• €48,013 under the standard salary requirement.
• €36,497 if you are under 30 and hold a qualifying master’s degree.

Special rules apply to certain scientific researchers and doctors training to become specialists. Salary thresholds are adjusted annually, and the relevant conditions must continue to be met while the ruling is used.

Applying for the ruling

The employee and employer apply jointly to the Dutch tax authorities.

To obtain application from the first working day, the request must be submitted within four months of starting the employment. A later application generally means that the ruling can only apply prospectively.

Once granted, the ruling is implemented through the employer’s payroll administration.

Changing employers or going on garden leave

An existing ruling may continue when you change employers, but a new application is required. Continuation is limited to the remaining duration of the original ruling.

Two separate deadlines matter:

• Agreeing the new employment: a new employment agreement must be concluded within three months of your last actual working day with your previous employer.
• Applying for continuation: the request must be submitted within four months of starting the new employment for the ruling to apply from the first day, provided the other conditions are met.

If you are on garden leave, your last actual working day may be earlier than your formal employment end date, even if you continue receiving salary. Review the dates promptly rather than assuming that the deadlines begin when your contract formally ends.

Using the 30% ruling through your own BV

The ruling may also be available if you own a Dutch BV and work for it as an employee. This can be relevant for consultants and other professionals who want to provide services directly to clients.

The BV contracts with clients and pays you a salary through its payroll administration. The ruling applies to qualifying salary, not to dividends or directly to profits earned as a sole proprietor.

If you already have a ruling with another employer, you and your BV can apply for continuation under the employer-change rules described above. Incorporating the BV does not restart the ruling’s duration or automatically establish eligibility.

If you are still living abroad and intend to apply for the first time through your own BV, the recruitment, employment and relocation arrangements should be reviewed before you move to the Netherlands.

What else should you consider?

Your director’s salary must be assessed under the Dutch customary salary rules for substantial shareholders, separately from the salary requirements for the expat scheme.

You should also consider business expenses, accounting and payroll costs, and insurance needs. Depending on your ownership and control of the BV, you may not be covered by Dutch employee insurance schemes.

Residence permits

The 30% ruling is a tax arrangement. It does not grant permission to live or work in the Netherlands.

If your residence permit is linked to your employment, changing employers or starting work through your own BV may have immigration consequences. Where necessary, we coordinate with our immigration law partners to assess your options.

How TaxGate can help

We assist employees and employers with first applications, eligibility reviews and continuation requests, including applications through an employee’s own BV.

Application fees include an eligibility review, preparation, submission and employer coordination. Our DGA / Complex service also covers the additional documentation and explanation required for applications involving employment through your own BV.

For clients starting a business, we can also coordinate BV incorporation and provide ongoing accounting, tax compliance and payroll administration. Further advice on structuring, director’s salary or immigration matters is agreed separately.

Start your application or book a consultation

If you would like us to assess your eligibility and handle your application, please start through our 30% ruling check and application page. We will confirm the applicable scope and fee before starting.

If you first need advice on eligibility, deadlines or working through your own BV, you can book a 60-minute online consultation for €215 excluding VAT. The consultation provides an initial assessment of your circumstances and the next steps.

The consultation fee is refunded if you become a client.

Other frequently asked questions

What changes from 2027?

In 2026, the maximum tax-free allowance remains 30%. From 2027, it generally becomes 27%. Transitional rules may preserve the 30% rate and affect the applicable salary threshold, depending on when you first used the ruling.

Does the ruling exempt my savings and investments?

Not generally. Partial non-resident taxpayer status was abolished from 2025. Qualifying employees who already used the 30% ruling before 2024 may continue to elect this status through 2026 under transitional rules.

This can limit Dutch taxation in Box 2 and Box 3, but does not exempt all assets or income. Its availability and effect should be checked as part of your personal income tax position.

Information based on the rules applicable in 2026. Individual circumstances and transitional provisions may affect the outcome.

Official guidance: Dutch tax authorities: the expat scheme, changes from 2027 and partial non-resident taxpayer status.