The 30% ruling (30%-regeling) is a Dutch tax facility designed to attract skilled workers from abroad. It allows qualifying expats to receive up to 30% of their gross salary tax-free as a reimbursement for extraterritorial costs — the additional expenses of living and working outside your home country.
Who Qualifies for the 30% Ruling?
To be eligible, you must meet several conditions:
- Recruited from abroad: You must have been hired or transferred by a Dutch employer from a country more than 150 kilometres from the Dutch border.
- Specific expertise: You must have skills or experience that are scarce or not readily available in the Dutch labour market. This is typically demonstrated by meeting a minimum salary threshold.
- Minimum salary: Your taxable salary (after the 30% deduction) must meet the minimum threshold, which is approximately 46,107 euros for 2025 (or 35,048 euros for employees under 30 with a Dutch master's degree or equivalent).
- Residency requirement: In the 24 months before your first working day in the Netherlands, you must have lived more than 150 km from the Dutch border for at least 16 of those months.
How Much Can You Save?
The ruling allows 30% of your gross salary to be paid tax-free. For example, if your gross salary is 80,000 euros, 24,000 euros would be tax-free, and you would only pay income tax on the remaining 56,000 euros. This can result in thousands of euros in annual tax savings.
The Balkenende Norm Cap (Since 2024)
Since January 2024, the 30% ruling is capped at the WNT norm (also called the Balkenende norm), which is approximately 233,000 euros for 2025. This means the maximum tax-free amount is about 69,900 euros (30% of 233,000 euros), regardless of how high your actual salary is.
Additionally, new applicants from 2024 onwards are subject to a phased reduction: 30% in years 1-2, 20% in months 21-40, and 10% in months 41-60. Existing recipients before 2024 may be grandfathered under the old rules.
How to Apply
The application must be submitted jointly by you and your employer to the Belastingdienst. You will need:
- A completed application form
- Your employment contract
- Proof of your previous residence abroad
- Evidence of your qualifications and expertise
The application should be submitted within four months of starting employment to ensure the ruling applies from day one. Late applications result in the ruling starting from the first day of the month after approval.
Duration
The 30% ruling applies for a maximum of 5 years (60 months). Any previous period of residence or employment in the Netherlands is deducted from this maximum, so it is important to apply promptly after arriving.
Additional Benefits
Beyond the tax-free allowance, expats with the 30% ruling can also opt for partial non-resident taxpayer status. This means you can choose to be treated as a non-resident for Box 2 and Box 3, potentially avoiding Dutch wealth tax on foreign assets.
You can also exchange your foreign driving licence for a Dutch one without taking a driving test — a practical benefit many expats appreciate.
Use our 30% ruling calculator to see exactly how much you could save.