The 30% ruling is an interesting feature for expat employees in the Netherlands. The Dutch government introduced the 30% ruling, also known as the 30% reimbursement ruling, to attract foreign specialists with specific expertise that is poor or not available in the Netherlands. However, there are strict requirements you should meet.
Benefits of the 30% ruling
The most important element of this ruling is a reduction of your taxable income.
The fiscal benefit is calculated based on the employees’ gross annual salary. From this total amount, 30% is free from income tax. When this ruling applies in your situation, only 70% of your income is used when determining the amount of income tax you are required to pay. Furthermore, except for pension premiums, all your bonuses, holiday allowance,
Requirements for the 30% ruling
Are you are eligible for the 30% ruling? Yes, but only if you meet all of the following conditions:
- You are in paid employment.
- You have a specific expertise that is not or hardly found on the Dutch labour market.
- You were recruited outside of the Netherlands.
- You are in possession of a valid decision.
Read the strict requirements for qualification on the website of the Belatingdienst.
The 30% ruling is coordinated and supervised by the Belastingdienst (Dutch tax office), and the employer must agree that the 30% ruling applies to the employee’s situation before you start the application procedure.
Duration of the 30% ruling
In January 2019, the duration of the 30% ruling reduced from eight to five years.
Apply for the 30% facility
Do you meet all conditions? Then apply, together with your employer, for permission to use the 30% facility on the website of the Belatingdienst. You will receive a reply from the Dutch tax office within 10 weeks.
Tax advisors in the Netherlands
Whatever your individual circumstances in the Netherlands, if you need help with your Dutch taxes, it’s a good idea to consult some professionals, so take a look at our list of Dutch tax advisors in the Netherlands. Here you will find a full list of expatsHaarlem’s partners, including tax advisors.