30 ruling Netherlands
Working and living abroad is quite an adventure. Not only because of the new culture and different customs, but also because you have to find your way in new laws and regulations. For example, you may have heard of the 30 percent rule for ex-pats. A tax benefit for foreign employees and their Dutch employers to compensate for the high costs of housing and travel. We are happy to explain how you can apply for the 30-ruling in the Netherlands, and the conditions and requirements. Of course, we will also keep you informed of the latest tax news.
30 percent ruling Netherlands rules
Foreign workers usually have more costs for housing, traveling, and living. To compensate them the Dutch government allows employers to pay out 30 percent of their wages as a tax-free allowance. To be eligible for the 30 percent ruling, ex-pats must meet a number of requirements and the employer must submit a request to the Dutch Tax Office (Belastingdienst). Furthermore, foreign workers must meet the following 30 ruling criteria:
- The ex-pat is registered in The Netherlands and employed by the employer submitting the 30 tax ruling application.
- The ex-pat contributes to the Dutch economy because of their specific knowledge.
- The ex-pat was recruited outside the Netherlands
- The ex-pat has a valid work permit.
30 percent ruling Netherlands requirements
To apply for 30 tax ruling Netherlands the Dutch authorities also enforce a number of additional rules regarding education, salary, and age of the foreign employee.
- The 30 percent ruling minimum salary must be €39,467 (2022) or more. In 2021 the minimum salary was €38,961 (2021), not including the tax-free allowance.
- When the ex-pat is under the age of 30 he must have a Dutch academic master’s degree or a similar foreign degree. His salary must also be higher than € 30,001 (2022) or € 29,616 (2021) not including the tax-free allowance.
- The ex-pat conducts scientific research at a designated research facility or is a doctor in training to be a specialist. In this case, the height of the salary is not relevant.
Only if these 30 tax ruling conditions are met, does the ex-pat qualify for the scheme. When applying for the 30 percent ruling you must provide the Dutch Tax Office with copies of legal documents and a written agreement and statement from the employer.