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…
General reference only
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30% ruling tax-free allowance rate
30% of total remuneration (including the allowance) paid tax-freeWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Effective top rate on gross salary under 30% ruling
~34.65% (vs 49.5% without ruling)Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Standard top income tax rate (without ruling)
49.5%Wet Inkomstenbelasting 2001
Taxable wage proportion under 30% ruling
70% of gross salaryWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
30% ruling duration (from 2024)
5 yearsWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
30% ruling duration (pre-2024, post-2019)
5 yearsWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
30% ruling duration (pre-2019)
8 yearsWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Minimum gross taxable salary threshold for 30% ruling (general, 2025)
€46,660Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Minimum gross taxable salary threshold for 30% ruling (under-30 with master's degree, 2025)
€41,954Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Employer application deadline to Belastingdienst after start of employment
Within 4 months of start of employmentUitvoeringsbesluit Loonbelasting 2001
Effect of late 30% ruling application
Ruling takes effect from the first day of the month in which the application was filed (not retroactive to employment start)Uitvoeringsbesluit Loonbelasting 2001
Minimum distance from Dutch border prior to employment (150 km rule)
More than 150 km from Dutch borderWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Minimum period of residence beyond 150 km from Dutch border within lookback window
At least 16 of the 24 months before starting work in the NetherlandsWet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
30% ruling rate applicable across all years (from 1 January 2024 for new applicants)
30% in full for years 1–5 (no step-down)Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Old transitional step-down rate — year 4
20%Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Old transitional step-down rate — year 5
10%Wet Inkomstenbelasting 2001, Art. 10e; Uitvoeringsbesluit Loonbelasting 2001
Partial non-resident election (keuzerecht) filing method
Election must be made on the annual tax returnWet Inkomstenbelasting 2001, Art. 2.5; Uitvoeringsbesluit Loonbelasting 2001
| 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 holders can elect to be treated as a partial non-resident of the Netherlands for Box 2 and Box 3 purposes:
This is a significant benefit for high-net-worth individuals with foreign investment portfolios.
The partial non-resident election must be made on the annual tax return.
From 1 January 2024, the rules changed:
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.
When the 5-year ruling period ends, the employee becomes a fully taxable Dutch resident:
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.
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Other Netherlands computations in the OpenAccountants library.
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