Are you an expat coming to work in the Netherlands? Did you just receive a job offer from a Dutch employer which made you consider moving? If so, the Dutch 30% tax ruling might apply to you. Of course, the perk of not paying tax on 30% of your salary comes with multiple conditions that you need to meet. Read this page to get a better grasp on all you need to know about it.
The 30% Tax Ruling, Explained
The Dutch 30% ruling is a tax exemption that applies to people recruited by Dutch employers from outside of the Netherlands. Whether you are ahighly-skilled migrant coming from a non-EU country or an EU national, you need to meet several conditions to get it. Simply put, this ruling allows you to claim up to 30% of your salary tax-free.
Who Is Eligible
Now that you know what it is, let’s see what conditions you need to meet as a foreign employee to apply for it and successfully claim your 30% tax exemption.
One of the conditions to qualify for the 30% ruling is a ‘specific expertise’ in the form of a minimum annual salary in the Netherlands. For 2024, this has been determined as follows:
- For employees aged 30 or older: €46,107 (up from €41,954 in 2023)
- For employees under the age of 30 with a master’s degree: €35,048 (up from €31,891 in 2023)
HERE is the full list of requirements for the 30% ruling in the Netherlands.
From 1 January 2024, the 30% ruling will be scaled down as follows:
- For no more than the first 20 months, the tax-free allowance will not exceed 30% of the taxable salary;
- For no more than the following 20 months, the tax-free allowance will not exceed 20% of the taxable salary; and
- For no more than the remaining 20 months, the tax-free allowance will not exceed 10% of the taxable salary.
How to Apply for the 30% Tax Ruling
Both you and your employer need to apply to the Dutch Tax Authorities (Belastingdienst). You can find the application form and instructions on how to complete it HERE.
Important: You should have it in writing that both parties agree to the 30% ruling.
If the company employing you does not have a legal entity in the Netherlands, they will be working with a third party that is a registered sponsor. Blue Lynx, for example, is a registered sponsor with the IND and can apply for the 30% ruling on behalf of your employer. We also offer contracting services on behalf of non-Dutch or non-IND registered employers – you can direct your employer to us for more information.
Once you complete the form, you will need to print it out and mail it to the Dutch Tax Authorities.
What if I Am a Foreign Student Who Has Completed a Master’s Degree in the Netherlands?
To qualify for the 30% tax ruling as a Master’s Degree student, you need to:
- Be under 30 years of age
- Have obtained your Master’s degree from a Dutch university or an equivalent degree in a country other than the Netherlands
- The non-taxable 70% of your wage exceeds € 29.149.
What if I am Conducting Scientific Research?
If you are relocating to the Netherlands to conduct scientific research for a Dutch institution, you are eligible to apply for the 30% tax return. How much you will be earning does not matter in this case, there is no taxable income threshold to reach and exceed.
What if You Are Dutch but Lived Your Whole Life Outside of the Netherlands?
As of January 1st 2012, if you have lived out of the country for 25 years, you are eligible for the 30% tax ruling, even if you are a Dutch national.
What if You Open Your Own Company or Go Freelance?
By definition, this financial incentive for highly skilled migrants only applies to them if they are employed by a company. However, there are some ways around it. If you register your company as a Besloten Vennootschap (B.V.), i.e. a private limited company and list yourself as an employee on its payroll, you may apply for the 30% tax ruling. However, the Dutch Tax Authorities may still not issue a ‘valid decision’ for your case.
The Tax Plan 2023 regulates that the tax-free compensation that can be paid based on the 30%-ruling will be capped
This capping will take effect from 1 January 2024. Employers can pay a maximum of 30% of income up to the Balkenende norm tax-free.
For 2024, the Balkenende norm is EUR 233,000. This means that the maximum base over which the 30% ruling can be applied is an amount of EUR 233,000. That way an employer can give a maximum of EUR 69,900 tax-free compensation.
This capping applies to employees using the 30% ruling from 1 January 2023. There is a transitional rule for employees on whose wages the 30% ruling was applied in December 2022. For this group, the capping does not apply from 1 January 2024, but as of 1 January 2026.
Get Professional Advice
If you need some help manoeuvring your way around tax returns or need additional accounting advice, we recommend you turn to the tax specialists at Smit en de Wolf. Have Blue Lynx in mind if you need a business consultation in regards to the 30% facility. Schedule a consultation with us by emailing us at thehague@bluelynx.com.
