30% Ruling Changes in 2027: What the Phase-Down to 27% Means for You
What Is Changing in 2027?
The Dutch government passed legislation to gradually reduce the 30% ruling (now officially called the "Expatregeling" since 2025). The key change: the tax-free allowance drops from 30% to 27% for new applications approved from January 1, 2027.
This is part of a broader set of reforms that began in 2024. The government's stated goal is to make the ruling more sustainable while maintaining the Netherlands' competitiveness for international talent. In practice, it means new arrivals from 2027 onward will pay more in tax than those who locked in the 30% rate.
But the reduction to 27% isn't the only change. The abolition of the partial non-resident taxpayer status (partiële buitenlandse belastingplicht), which already took effect in 2025, has significantly reduced the ruling's benefits for expats with foreign investment income. Together, these changes represent the most significant overhaul of the expat tax regime in decades.
The Phase-Down Timeline: 30% to 27%
Here's the timeline of how the ruling has been phased down:
| Period | Exemption Rate | Who It Applies To |
|---|---|---|
| Through 2023 | 30% | All approved rulings |
| 2024 – 2026 | 30% | Applications approved in this period |
| From 2027 | 27% | New applications approved from 2027 onward |
The critical point: the rate you receive depends on when the ruling takes effect, which is tied to your employment start date and application filing. If you start working in 2026 and file within the 4-month deadline, the ruling should take effect from your 2026 start date - even if the Belastingdienst issues the approval letter in 2027. However, filing late or starting in 2027 means the 27% rate applies. Timely filing is essential.
If you start working in the Netherlands in 2026, file your application promptly. The ruling takes effect from your start date, so a 2026 start date with a timely filing should lock in the 30% rate. But if you delay filing until after January 1, 2027 - or start employment in 2027 - the new 27% rate applies. Don't leave it to chance: file as early as possible.
Who Is Affected - and Who Isn't
Not Affected (You Keep 30%)
- Existing ruling holders: If your 30% ruling was already approved before 2027, your rate stays at 30% for the remaining duration. The phase-down does not apply retroactively.
- Applications filed and approved by December 31, 2026: If you apply in 2026 and the Belastingdienst approves it before the end of the year, you lock in 30% for your entire ruling period (up to 60 months).
- Employer changes within the ruling period: If you change employers while your ruling is active, your new application maintains the 30% rate (as long as the original ruling was approved at 30%).
Affected (You'll Get 27%)
- New arrivals from 2027: Anyone who starts working in the Netherlands from January 1, 2027 and applies for the ruling will receive the 27% rate.
- Late 2026 starters who miss the 4-month filing window: If you start in Q4 2026 but fail to file within 4 months, you lose the ruling entirely - not just the 30% rate.
- Anyone who starts employment from January 1, 2027: Regardless of when you signed the contract or received the offer, the ruling takes effect from your first working day. A 2027 start date means the 27% rate.
How to Lock In the Full 30%
If you're planning to relocate to the Netherlands, the math is simple: apply and get approved in 2026 to keep the full 30%. Here's what that requires:
- Start working by mid-2026 at the latest. You need to start employment first, then apply. Given the 4-month application window and 4-8 week processing time, starting by August 2026 gives you a comfortable margin.
- File immediately after starting. Don't wait until the end of the 4-month deadline. File within your first week if possible - you and your employer should have the paperwork ready before your first day.
- Ensure all documentation is complete. Incomplete applications get sent back, costing weeks. Missing documents are the #1 cause of delays at the Belastingdienst.
- Use our calculator to verify you meet the salary threshold. You must earn at least €48,013 in taxable wages (€36,497 if you're under 30 with a Master's degree).
Once your ruling is approved at 30%, that rate applies for your entire entitlement period - up to 60 months. The rate won't drop to 27% midway through. This is why applying in 2026 is worth the effort: you protect 5 years of income at the higher exemption.
Loss of Partial Non-Resident Taxpayer Status
The phase-down from 30% to 27% gets most of the headlines, but for many expats, the abolition of partial non-resident taxpayer status (partiële buitenlandse belastingplicht) is the bigger financial blow - and it's already in effect.
Before 2025, 30% ruling holders could elect to be treated as partial non-resident taxpayers. This meant that income from foreign assets in Box 2 (substantial shareholdings) and Box 3 (savings and investments) was exempt from Dutch tax. For expats with significant investment portfolios, foreign property, or shares in foreign companies, this was enormously valuable.
From January 1, 2025, this option no longer exists. All 30% ruling holders - including those with existing rulings - are now taxed as full Dutch residents on their worldwide income. Foreign savings, investments, rental income, and dividend income are all subject to Dutch taxation.
This change affects everyone, not just new applicants. If you have an existing ruling, you lost this benefit on January 1, 2025 - regardless of when your ruling was originally granted.
Unlike the 30%-to-27% phase-down (where existing holders keep their rate), the abolition of partial non-resident taxpayer status applies to all ruling holders from 2025 onward. If you have foreign investments, consult a tax advisor about the impact on your overall tax position.
The Financial Impact: How Much More Will You Pay?
Let's put concrete numbers on the difference between a 30% and 27% exemption.
Example: €85,000 Gross Salary
With 30% ruling (2026 rate):
Tax-free allowance: €85,000 x 30% = €25,500
Taxable income: €59,500
Approximate annual tax savings: ~€9,800
With 27% ruling (2027 rate):
Tax-free allowance: €85,000 x 27% = €22,950
Taxable income: €62,050
Approximate annual tax savings: ~€8,820
Difference: ~€980 per year, or ~€4,900 over 5 years. At higher salaries, the gap widens significantly. For someone earning €120,000, the difference exceeds €1,400 per year - over €7,000 across the full ruling period.
Use our interactive calculator to see the exact impact for your salary level.
| Gross Salary | Annual Savings at 30% | Annual Savings at 27% | Annual Difference | 5-Year Difference |
|---|---|---|---|---|
| €60,000 | ~€6,200 | ~€5,580 | €620 | €3,100 |
| €85,000 | ~€9,800 | ~€8,820 | €980 | €4,900 |
| €120,000 | ~€15,200 | ~€13,780 | €1,420 | €7,100 |
| €150,000 | ~€19,400 | ~€17,550 | €1,850 | €9,250 |
These figures are estimates based on 2026 tax rates. Your actual savings depend on additional factors like social security contributions, tax credits, and personal deductions.
What You Should Do Now
If You're Already in the Netherlands with a 30% Ruling
Your rate is locked in. No action needed regarding the phase-down itself. However, review your tax position regarding the loss of partial non-resident taxpayer status if you have foreign investments. Consider speaking with a tax advisor about restructuring your investment portfolio to minimize Dutch tax exposure.
If You're Planning to Move to the Netherlands in 2026
Act fast. The earlier in 2026 you start employment and file your application, the better your chances of getting approved at 30%. Here's your action plan:
- Negotiate your start date: If you're in negotiations with a Dutch employer, push for the earliest possible start date in 2026.
- Prepare documents in advance: Have your diplomas, CV, proof of residence history, and contract ready before day one. Don't wait until after you start to begin gathering paperwork.
- File within the first month: The law gives you 4 months, but with processing times of 4-8 weeks, filing early gives you the best chance of a 2026 approval.
- Verify your salary qualifies: Check that your gross salary meets the 2026 threshold requirements.
If You're Planning to Move in 2027 or Later
The 27% ruling is still a significant tax benefit. While it's less generous than the 30% rate, it still means a substantial portion of your income is tax-free. Don't let the phase-down discourage you from applying - the ruling remains one of the most attractive expat tax incentives in Europe.
Common Questions About the 2027 Changes
Will the rate drop further below 27% in future years?
There is no current legislation for further reductions beyond 27%. However, the political landscape can change. The reduction from 30% to 27% was itself the result of a political compromise - earlier proposals suggested reducing it to 20% or eliminating it entirely. For now, 27% is the planned rate.
Can I apply in 2026 even if I started working in 2025?
If you started working in 2025 and didn't yet apply, you may already be outside the 4-month application deadline. The application must be submitted within 4 months of your first working day in the Netherlands. If that window has passed, you can no longer apply for the 30% ruling.
What if I start in December 2026 - do I still get 30%?
Yes - if you start employment in 2026, the ruling takes effect from your 2026 start date, which should qualify for the 30% rate. The key is filing within 4 months of your first working day. Even if the Belastingdienst processes your application in 2027, the ruling applies retroactively to your start date. File the same week you start to be safe, and ensure all documentation is complete and error-free.
Does the 60-month maximum duration change?
No. The maximum duration remains 60 months (5 years) regardless of whether you receive the 30% or 27% rate. Time previously spent in the Netherlands may reduce this duration - consult the FAQ for details.
I'm changing employers in 2027. Will my rate drop from 30% to 27%?
No. If your original ruling was approved at 30%, a new application with a different employer maintains the 30% rate for the remaining duration. The rate attaches to the original approval, not to each new employer application. Read our guide on changing employers for the full process.
Lock In 30% Before It's Too Late
Apply in 2026 to secure the full 30% exemption for up to 5 years. We handle the paperwork so you don't miss the deadline.