What is the 30% Ruling?
The 30% ruling is a Dutch tax advantage for highly skilled migrants recruited from abroad. It allows employers to pay up to 30% of the employee’s salary as a tax-free allowance, designed to cover the extra costs of living in a foreign country.
Key Changes in 2026
The Dutch government has implemented significant changes to the 30% ruling. The ruling now follows a step-down structure: 30% for the first 20 months, 20% for months 21-40, and 10% for months 41-60. This applies to new applications from January 2024 onwards.
Eligibility Requirements
To qualify, the employee must be recruited from abroad (living more than 150km from the Dutch border), possess specific expertise that is scarce in the Netherlands, and meet the minimum salary threshold (€46,107 in 2026, or €35,048 for employees under 30 with a Master’s degree).
Application Process
The application is submitted jointly by employer and employee to the Tax Administration (Belastingdienst). Processing typically takes 2-4 months. It’s crucial to apply within 4 months of the start date to ensure retroactive application.
