What Is the Dutch 30% Ruling?

What is the 30% ruling?

The 30% ruling (officially the "Expat Scheme" or Expatregeling) is a Dutch tax benefit for skilled international employees. If you qualify, up to 30% of your gross salary is treated as a tax-free reimbursement for extraterritorial costs, meaning you pay income tax on only 70% of your salary. On a gross salary of €75,000 that works out to roughly €8,000–10,000 in annual tax savings.

The legal basis is Article 31a of the Wet op de loonbelasting 1964. The ruling compensates for the genuine extra costs of relocating to the Netherlands: housing, travel, and cost-of-living differences. The Belastingdienst publishes the current rules and forms on its website.

Who qualifies for the 30% ruling?

You must meet all four criteria simultaneously. Missing any one of them means the ruling cannot be granted.

1. Employed by a Dutch company

You must have a formal employment contract with a company registered in the Netherlands, or with a Dutch branch of a foreign company. Self-employed individuals and freelancers cannot apply directly. If you work as a freelancer and want to use the ruling, you would need to set up a Dutch BV (private limited company) and employ yourself through it, but this comes with significant administrative overhead and the Belastingdienst scrutinizes such structures closely.

2. Recruited from abroad ("scarce expertise")

Your employer must have recruited you from outside the Netherlands. The Belastingdienst asks where you lived (fiscal residence) when the employment contract was concluded. Acceptable evidence includes the signed contract, e-mails showing the date of the offer and acceptance, and a CV with your residence history.

3. The 150 km distance rule

You must have lived more than 150 km from the nearest Dutch border for more than 16 of the 24 months before your first working day in the Netherlands. The distance is measured as the crow flies from the nearest border crossing (not the border of Amsterdam or any city). You will need documentary proof of your previous address: utility bills, bank statements, rental contracts, or official residence certificates work well. Common edge cases:

• Belgium, Luxembourg, and parts of Germany: These countries border the Netherlands, so many residents living near those borders fall inside the 150 km zone. Check your specific city against the Dutch border before assuming you qualify.
• Brief visits to the Netherlands: Short stays (conferences, holidays) do not break the 16-month requirement, but they must be declared on the application form.
• Returned expats: If you lived in the Netherlands before, any time spent there can reduce your 5-year ruling duration. Prior Dutch residence in the 24 months before your start date may also disqualify you from the distance rule.

4. What is the salary threshold in 2026?

Your taxable salary must be more than the norm set each year (art. 10eb Uitvoeringsbesluit loonbelasting 1965). The norm is tested after applying the tax-free deduction, so the gross salary you need is higher than the published figure.

Year	Threshold (taxable salary)	Minimum gross salary needed for full 30%	Under-30 with Master's (taxable)	Under-30 gross needed for full 30%
2025	€46,660	~€66,657	€35,468	~€50,669
2026	€48,013	~€68,590	€36,497	~€52,139
2027 (provisional)*	Not yet final*	Not yet final	Not yet final*	Not yet final

The 2025 and 2026 figures are sourced from the Belastingdienst (deskundigheidsvereiste). *The 2027 salary norms are not final yet. The Handboek Loonheffingen 2026 (p. 303) gives €51,899 and €39,450, to be indexed again; the draft Fiscaal verzamelbesluit 2026 gives €52,521 and €39,923 before the final 2027 indexation. Final figures are expected in December 2026. Rulings first used before 2025 keep the old (indexed) norm; rulings first used before 2024 also keep 30%. See how the phase-down applies to existing rulings. Last checked October 2026.

How the threshold works in practice: The threshold applies to the taxable portion of your wage, not the full gross. On a €68,590 gross salary, the full 30% deduction removes €20,577, leaving €48,013 taxable to the cent, which is not more than the norm; a gross salary above €68,590 is what clears it with room to spare. If your gross salary is lower, say €60,000, you can still qualify: the tax-free allowance is then capped below the full 30%, just enough to keep the taxable portion a cent above €48,013. Below roughly €48,013 gross, the norm cannot be met at all, since there is no deduction left to apply.

Use the 30% ruling calculator to see the exact applicable percentage and annual tax savings for your specific salary.

How do you apply for the 30% ruling?

Step 1: Gather your documents

Collect your signed employment contract, a full CV with uninterrupted work history, educational diplomas (with a translation if the Belastingdienst asks for one), proof of your previous residential address, and a valid passport or ID. Your employer should prepare recruitment documentation: the original job posting, recruiter correspondence, or a letter explaining why your specific expertise was needed.

Step 2: Complete the official application form

The form is called "Verzoek loonheffingen Expatregeling" and is available on the Belastingdienst website. Both you and your employer must fill in their respective sections and sign the form. Or use our service: you upload your documents, we prepare the completed form for you, and you download it instantly after payment. See how our service works.

Step 3: Submit to the Dutch Tax Authority

Post the completed form and all supporting documents to the Belastingdienst address printed on the form. The Belastingdienst says it responds within 8 weeks of receipt. You can still apply after the 4-month deadline, but you lose the retroactive benefit.

Step 4: Ruling takes effect

If approved, the ruling applies from your first day of employment, provided you applied within 4 months of that date. Your employer then applies the 30% exemption through payroll each month. The Belastingdienst issues a written decision (beschikking) confirming the start date and end date of your ruling.

Required documents checklist

From the employee:

• Valid passport or ID
• Complete CV with all work experience and no unexplained gaps
• Educational diplomas and certificates (with a translation if requested)
• Proof of residence abroad for more than 16 of the 24 months before your first working day: utility bills, bank statements, or rental contracts showing your non-Dutch address
• Dutch BSN, if you have already registered with your municipality

From the employer:

• Signed employment contract showing start date and agreed salary
• Proof of where you lived when the contract was concluded (CV with residence history, dated e-mails)
• KvK number (Chamber of Commerce registration)
• Payroll tax number (loonheffingennummer)

What changes in 2027?

From 1 January 2027, the tax-free allowance drops from 30% to 27% for every ruling except the transitional group (applied over the December 2023 payroll). This is the most significant reduction since the ruling was introduced. Here is the full timeline:

• Rulings approved before 2024 (applied over the December 2023 payroll): you keep the full 30% for your entire remaining ruling period under transitional law.
• Rulings approved in 2024, 2025, or 2026: the 30% rate applies through 31 December 2026. From 1 January 2027 the rate becomes 27% for the remainder of your ruling period.
• New applications approved from 1 January 2027 onward: the rate is 27% from the start.
• 2025 changes already in effect: the ruling was officially renamed "Expat Scheme" (Expatregeling). The partial non-resident taxpayer status (partiële buitenlandse belastingplicht) that previously let ruling holders opt out of Box 3 taxation on worldwide assets was abolished on 1 January 2025. A transitional rule allows those whose ruling was already applied over the December 2023 payroll to retain partial non-resident status through 31 December 2026 only. From 2027, all ruling holders are taxed as Dutch residents in Box 2 and Box 3 without exception.

If you are considering applying now, filing promptly gives you the 30% rate for the rest of 2026. It does not carry past the cutover: from 1 January 2027 your rate becomes 27% for the remaining months, as it does for everyone who started from 2024 onward. Run the calculator to see the difference between a 30% and 27% ruling at your salary.

Deadlines and timelines

• 4-month application deadline: Submit within 4 months of your first working day in the Netherlands. If you miss this window you can still apply, but the ruling takes effect only from the first day of the month after submission. You lose the tax benefit for those first months. See the FAQ on late applications for more detail.
• Processing time: the Belastingdienst says it responds within 8 weeks of receiving a complete application. Missing documents or follow-up questions mean a later decision.
• Duration: Maximum 60 months (5 years) from the ruling start date. Any prior time spent living or working in the Netherlands is subtracted from this total.
• Employer change: the ruling can continue with a new employer if the new contract is concluded within 3 months after the old employment ended. You and the new employer file a joint request; received within 4 months of your first working day there, it applies from that day. The remaining duration carries over; you do not restart the 5-year clock.