Netherlands 30% ruling (tax-free allowance for inbound expats): 30% of salary tax-free, conditions, 5-year duration, partial non-resident election. Trigger on: "Netherlands 30% ruling", "30 procent regeling", "Holland expat tax ruling", "Netherlands inbound worker tax", "30% allowance Netherlands", "Dutch expat regime", "Netherlands tax ruling expatriate", "partial non-resident Netherlands".
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Quick reference
| Item | Value | |---|---| | Benefit | **30% of salary** (including the allowance) paid tax-free as cost reimbursement | | Effective top rate reduction | From 49.5% to ~34.65% on gross salary | | Duration | **5 years** (from 2024; previously 5 years, was 8 before 2019) | | Salary threshold (2025) | Minimum €46,660 gross taxable salary (€41,954 for under-30 with master's) | | Application | Employer applies to Belastingdienst within 4 months of start of employment | | Legislation | Wet IB 2001 Art. 10e–10ef; Uitvoeringsbesluit LB 2001 |
30% ruling mechanism
The 30% ruling allows a Dutch employer to pay an employee an income tax-free allowance of up to 30% of the total remuneration (including the allowance itself) as reimbursement of extraterritorial costs (housing, school fees, travel to home country).
Split of gross salary
Of the gross salary, 30% is treated as a tax-free reimbursement and 70% is the taxable wage.
Recruited from abroad
The employee must be recruited or transferred from outside the Netherlands
150 km distance requirement
Lived more than 150 km from Dutch border for at least 16 of the 24 months before starting work in the Netherlands
Specific expertise salary threshold (2025)
€46,660
Dutch employer sponsorship
Dutch employer sponsoring the application
Partial non-resident election
30% ruling holders can elect to be treated as a partial non-resident of the Netherlands for Box 2 and Box 3 purposes
Quick reference
| Item | Value |
|---|---|
| Benefit | 30% of salary (including the allowance) paid tax-free as cost reimbursement |
| Effective top rate reduction | From 49.5% to ~34.65% on gross salary |
| Duration | 5 years (from 2024; previously 5 years, was 8 before 2019) |
| Salary threshold (2025) | Minimum €46,660 gross taxable salary (€41,954 for under-30 with master's) |
| Application | Employer applies to Belastingdienst within 4 months of start of employment |
| Legislation | Wet IB 2001 Art. 10e–10ef; Uitvoeringsbesluit LB 2001 |
Example: €100,000 gross salary 30% tax-free allowance = €30,000 Taxable wage = €70,000 Tax at top rate 49.5% = €34,650 Effective rate on €100,000 = 34.65% (vs 49.5% without ruling)
This is a significant benefit for high-net-worth individuals with foreign investment portfolios.
Previously (the old transitional regime): the rate stepped down from 30% → 20% → 10% in years 4 and 5. The full 30% for all 5 years is an improvement for new applicants.
Plan ahead for year 6 — the income tax hit can be significant
Working paper only. The application must be filed by the employer within 4 months of the start of employment — late applications result in the ruling taking effect from the first day of the month in which the application was filed. Have a qualified Dutch tax adviser (belastingadviseur) confirm eligibility and assist with the application.
Other Netherlands computations in the OpenAccountants Tax Library.
Box 2 treatment
Box 2 (substantial interests in Dutch companies): taxed as resident
Box 3 treatment
Box 3 (savings and investment wealth tax): only Dutch real estate taxed — foreign assets excluded from the Dutch wealth tax base
Election timing
The partial non-resident election must be made on the annual tax return.
Duration change from 2024
From 1 January 2024, duration reduced to 5 years (not extended beyond that)
Full rate for years 1-5
The 30% rate applies in full for years 1–5
Post-ruling taxation
When the 5-year ruling period ends, the employee becomes a fully taxable Dutch resident: taxed at normal progressive rates on worldwide income; all Box 3 wealth included in the Dutch tax base
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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