What are the benefits of the 30%-ruling?
Can I benefit from the 30%-ruling?
Can I apply for the 30%-ruling if I was a student in the Netherlands?
Are there any exceptions to the 150KM-requirement (for students)?
To whom does the reduced salary standard apply?
How can I prove that my skills and expertise are scarce in the local job market?
How is the 30% ruling calculated?
Can the 30%-ruling be less than 30%?
Is there a minimum stay required in the Netherlands to be able to use the 30%-facility?
Do I lose the 30% ruling if I obtain Dutch nationality?
Is the 30% ruling applicable to a severance payment?
Can the 30%-ruling be applied retroactively?
How does the 30% ruling work for part-time work or for parental/maternity leave?
Does the 30% ruling also apply to surviving dependents and/or a partner?
What if the employee has a temporary contract?
What happens if I change employer?
What expenses are considered extraterritorial costs?
When is a school considered an international school or a school with an international department?
What institutions are considered Appointed Medical Institutions?
What institutes are considered as Designated Science Institutes?
What is a 30% addendum to the employment contract and is this mandatory?
Can I be entitled to the 30%-ruling in case of prior stay in the Netherlands?
Is the 30%-ruling applicable in case of remote working in another country?
Higher net salary or lower employer costs
The 30% ruling is a very beneficial ruling for people coming to work in the Netherlands. An employer can choose to pay up to 30% of an employee’s salary tax-free. The maximum duration is limited to 5 years.
Both domestic and foreign taxpayers can benefit from the 30% ruling if they meet the conditions. The employer can also save costs by providing a net guaranteed salary to the employee, resulting in lower total employer costs.
Less tax on investment income
As a resident taxpayer of the Netherlands in general is taxable on their worldwide income under the Dutch tax system (boxes 1, 2, and 3). If the 30% ruling is granted, the resident taxpayer can choose to be treated as a partial non-resident taxpayer during the grant period of the 30% ruling. This means that they are taxed as a foreign taxpayer in box 2 and box 3 and exempt from wealth tax in the Netherlands (except for Dutch real estate investments, which is not their primary residence).
Easy exchange of driving license - no exam needed
If you have a foreign driving license, you are only allowed to drive in the Netherlands for a limited time (in most cases a maximum of 6 months with a valid foreign driving license). After that period, you will most likely have to take a Dutch driving exam to obtain a Dutch driving license. However, if you benefit from the 30% ruling, it is possible to exchange your foreign driving license for a Dutch driving license without an exam. This also applies to all family members registered at the same address as the holder of the 30% ruling. This saves you time and money.
The 30% ruling is very beneficial, but unfortunately not applicable to everyone that comes to work in the Netherlands. The following mandatory conditions must be met.
Conditions
Specific expertise
An employee has a specific expertise if a certain salary criterion is met.
To qualify, the salary, excluding the tax-free allowance in the Netherlands, should be higher than:
€ 41.954 in 2023
€ 39.467 in 2022
€ 38.961 in 2021
To have the maximum benefit of the 30%-ruling a person, older than 30 years, should have the following gross salary:
€ 59.934 in 2023
€ 56.381 in 2022
€ 55.659 in 2021
If you are under 30 years old and have a Dutch master's degree (or an equivalent title in another country), a lower salary criterion applies. Your salary, excluding the tax-free allowance in the Netherlands, has to be more than:
€ 31.891 in 2023
€ 30.001 in 2022
€ 29.616 in 2021
To have the maximum benefit of the 30%-ruling a person, younger than 30 years, should have the following gross salary:
€ 31.891 in 2023
€ 42.859 in 2022
€ 42.309 in 2021
For someone conducting scientific research at a designated research institution, or a medical specialist in training, there is no salary threshold.
Recruited from outside the Netherlands
This condition means that in the 24 months preceding the first day of work in the Netherlands, an employee must have lived more than 16 months at a distance of more than 150 kilometers from the Dutch border. If an employee lived in Belgium or Luxembourg, this condition is not met, nor in parts of France, Germany, and the United Kingdom.
If an employee was living in the Caribbean part of the Dutch Kingdom (Aruba, Bonaire, Sint Eustatius, Saba, Curaçao, or Sint Maarten) during their recruitment, the person is also considered to have been recruited from abroad.
The employee must be able to demonstrate that they have lived outside of the Netherlands.
If your employee lived in the Netherlands during their studies and find a job here afterwards, in principle the employee cannot be considered recruited from abroad (that is one of the conditions that must be met).
However, if the employee was here temporarily (i.e., on a temporary student visa from outside the EU), the employee may still be eligible for the 30%-ruling.
Then the employee must be able to demonstrate that during their studies, the employee was not considered a Dutch resident and that the center of their personal and economic life was located outside the Netherlands. Every situation is different, and a case with evidence must be submitted to the Dutch tax office. The employee must also ensure to meet all other conditions. We specialize in these types of requests, so please contact us if you need our help.
If your employee came to the Netherlands to promote and found a job within 1 year after completing their promotion, the employee will also be considered as recruited from abroad.
One of the conditions to qualify for the 30%-ruling is that in the 24 months preceding the first day of work in the Netherlands, an employee must have lived more than 16 months at a distance of more than 150 kilometers from the Dutch border.
There are a few situations that may be exempt from the 150KM requirement.
The 30% ruling was granted to the employee in the past
If an employee comes to work in the Netherlands (or returns to) and previously received (or could have received) the 30% ruling, the employee may lose the 30% ruling if they have lived outside the Netherlands for less than 16 months prior to their return. To prevent disqualification upon return to the Netherlands, exemption from the 150KM requirement is granted for a new or renewed Dutch employment/assignment on the condition that:
The employee has lived outside the mentioned radius of 150 km for more than 2/3 of the period of 24 months prior to a previous Dutch employment, and this previous employment did not start earlier than 5 years before the start date of the new Dutch employment (or 8 years if your previous employment should have started at least 8 years ago).
Depending on the specific facts and circumstances, the previously obtained 30% ruling (with the same employer) may still apply and no new application needs to be submitted. In that case, however, the time spent abroad during which the employee did not actually enjoy the 30% ruling is lost (for example, because they were subject to tax in a foreign country) (i.e. the duration of the 30% ruling is not extended).
The employee has obtained a PhD or postdoc
Also, university PhDs, who previously lived outside the mentioned radius of 150 KM, may qualify for the 30% ruling. It is important to note that the period during which they lived within the radius of 150 KM will not be taken into account to determine if they were recruited from abroad. Note: this only applies if the PhDs start working in a Dutch job within one year of obtaining their PhD.
University PhDs still need to meet the salary norm, which depends on their age (under 30 or not) and/or where they are going to work (educational and research institutions or others).
A young master is a person under 30 years of age with a Dutch master's degree (or an equivalent degree from another country) who meets the lower (under 30 years) salary requirement.
€ 31.891 in 2023
€ 30.001 in 2022
€ 29.616 in 2021
If an employee conducted scientific research at a designated research institution or is a trainee medical specialist, the employee can always apply for the 30% ruling and there is no salary threshold.
Not all foreign master's degrees can be considered equivalent titles. The Dutch tax office may request additional evaluation of the degree to ensure that the (master's) degree is equal to or higher than a master's degree in the Netherlands. The evaluation must be done by NUFFIC (a Dutch organization).
I am a "young master," what happens when I turn 30?
If an employee receives the 30% ruling while under 30 years of age but already meets the regular salary requirement, this will not affect their situation.
If an employee receives the 30% ruling while under 30 years of age and benefits from the lowered salary requirement (specific to qualifying master's students), this may have consequences.
In that case, the following applies. From the first day of the month following the month in which the employee turns 30, the salary must be at least the required salary for incoming employees over the age of 30 (regular salary criterion).
In the year the employee turns 30, the salary is calculated proportionally to determine the maximum amount that can be reimbursed tax-free.
Example: If an employee turns 30 on July 1, for the months of January - June, the earned (taxable) salary must be at least 6/12 * lowered salary level, and for the months of July - December * regular salary criterion.
Vacation pay and 13th month must be divided over 12 months. So if an employee receives holiday pay in May, 4/12 of the allowance is divided over the first period and 8/12 over the second period. The same applies if an employee receives a 13th month in December, 4/12 divided over the first period and 8/12 over the second period. If an employee receives a bonus, a check on which period the bonus is awarded will be needed.
An employee has a specific expertise if a certain salary criterion is met.
To qualify, the salary, excluding the tax-free allowance in the Netherlands, should be higher than:
€ 41.954 in 2023
€ 39.467 in 2022
€ 38.961 in 2021
To have the maximum benefit of the 30%-ruling a person, older than 30 years, should have the following gross salary:
€ 59.934 in 2023
€ 56.381 in 2022
€ 55.659 in 2021
If you are under 30 years old and have a Dutch master's degree (or an equivalent title in another country), a lower salary criterion applies. Your salary, excluding the tax-free allowance in the Netherlands, has to be more than:
€ 31.891 in 2023
€ 30.001 in 2022
€ 29.616 in 2021
To have the maximum benefit of the 30%-ruling a person, younger than 30 years, should have the following gross salary:
€ 31.891 in 2023
€ 42.859 in 2022
€ 42.309 in 2021
For someone conducting scientific research at a designated research institution, or a medical specialist in training, there is no salary threshold.
The 30% ruling is calculated as a maximum of 30% of all salary components (gross salary, bonus, vacation pay, etc.). This amount is deducted from the taxable income of the employee and the remaining 70% is subject to progressive taxation.
We have provided a simplified example below.
Gross monthly salary: € 6,000
30% ruling facility: € 1,800 (30% of € 6,000)
Salary that is subject to taxation: € 4,200 (70% of € 6,000)
Tax on salary: € 2,100 (50% as an example)
Net salary: € 3,900 (€ 2,100 + € 1,800)
In case you have doubts or need assistance with a calculation, please do not hesitate to contact us.
The benefit of the 30%-ruling is maximized at 30% but can be lower than 30%.
This can be explained as follows. The salary criterion is a minimum taxable salary of € 41.954 (for more than 30 years and in 2021). This € 41.954 corresponds to 70% of the total income if the 30% ruling is maximized (30%). In other words, if an employee has a gross salary of € 59.934 and a benefit of 30% of € 17.980, the taxable base would be exactly the minimum of € 41.954.
If the total gross salary package (including bonus, holiday allowance, etc.) is lower than € 59.934, the employee will receive a benefit that is lower than 30%. An example for clarification:
Monthly gross salary: € 4,000 (no other income, nor holiday allowance)
Annual salary: € 48,000 (12 * € 4,000)
Salary criterion: € 41.954 (minimum taxable salary)
Maximum benefit 30% ruling: € 6.046 (€ 48.000 – € 41.954)
Actual percentage 30% ruling: 12,60% (€ 6,046 / € 48,000)
If a 30% deduction to the taxable salary of € 48,000 was applied in our example, it would result in a taxable income of € 33,600. Since this would bring the taxable salary below the minimum threshold, it is not allowed. That is why a calculation of a split ruling is necessary. The payroll administration usually makes these calculations.
We provide wage scans to verify whether the 30% ruling has been processed correctly in the payroll administration. If you require assistance, please contact us.
No, there is no minimum stay required to benefit from the 30% ruling. If an employee works in the Netherlands for a Dutch employer, the employee can benefit from the 30% ruling if all the conditions are met. This also applies to people who do not have a place of residence in the Netherlands (foreign tax residents).
There is only a maximum duration for the 30% ruling. The 30% ruling can be granted for a period of up to 5 years (previously this was longer). Previous stays in the Netherlands can be subtracted from this maximum term.
You will not lose the 30% ruling if you obtain Dutch nationality, as nationality is not relevant for the 30% ruling.
The 30% ruling cannot be applied to a severance payment, as it is no income from current employment. A severance payment is considered a compensation for the loss of future income and/or pension. Although the amount is based on past work and related to the employment history with that employer, it is not specifically based on recent work performed and therefore the severance payment cannot be included as income from current employment. As such the 30%-ruling cannot be applied on severance payments.
The application for the 30% ruling must be submitted to the Dutch tax office within 4 months of the start of employment. After approval, the employer's payroll administration may retroactively apply the 30% ruling to the approval date stated in the decision letter from the Dutch tax office.
If the 30%-ruling application is not filed within 4 months of the start of the employment, the 30% ruling cannot be applied retroactively and will only start from the month following the date of application. Additionally, the duration of the 30% ruling will be shortened by the period between the start date of employment in the Netherlands and the issuance date of the 30% ruling by the Dutch tax office.
Part-time work does not lead to a proportional reduction in salary requirements. However, an exception has been made for parental leave and maternity leave.
Maternity leave/parental leave does not affect the entitlement to the 30% ruling, even if an employee’s salary falls below the salary threshold for a certain period. When applying for maternity leave and/or parental leave, the employee will retain the benefit of the 30% ruling based on the salary applicable to the duration of the employment contract.
The 30% ruling is a personal benefit and upon approval, a decision is issued in name of the employee for your specific employment situation at that time. Any surviving relatives and/or partner cannot make use of the 30% ruling. However, there are some advantages related to wealth tax and exchanging their foreign driver's license.
If the employee has accepted a job in the Netherlands and has a partner that travels with them, it is advisable that the partner seeks and accepts a job before moving to the Netherlands. This way, the partner can also benefit from the 30% ruling.
If the partner moves to the Netherlands and subsequently finds a job, the partner will be considered locally hired and will not meet the requirement of being recruited from abroad.
You can apply for the 30% ruling together with your employee with a fixed-term or indefinite employment contract. If an employee is eligible for the 30% ruling, it will be granted for a maximum duration of 5 years. Since the 30% ruling is linked to the employment, an employee will no longer be entitled to it after the end of their employment contract.
The payment of the 30% ruling will automatically cease when the employment ends, even if the duration of the granted 30% ruling has not yet expired. In most cases, the employee will try to change employers and transfer the 30% ruling.
The 30% ruling of the employee is linked to their Dutch employer. Only the Dutch employer mentioned in the 30% ruling decision letter may include the 30% ruling in the payroll on behalf of the employee.
If an employee changes employer, employer and employee must reapply for the 30% ruling for the remaining duration of the current 30% ruling. Note that there may be a maximum period of 3 months between the last day of employment with the previous Dutch employer and the signing of your new employment contract with the new Dutch employer. If this period exceeds 3 months, the 30% ruling will no longer be granted.
If an employee (formally) changes employer within an organization or through a merger/acquisition, employer and employee may also need to reapply for the 30% ruling and request a change of employer. If a company can be considered a so-called ‘SGI’ this may not be necessary in some cases.
According to Dutch tax legislation, extraterritorial costs can be reimbursed tax-free by an employer.
An employer has the option to reimburse the actual extraterritorial costs or to apply the 30% ruling if all requirements are met.
If the employer wishes to reimburse the actual extraterritorial costs, the employee must provide evidence of these costs reasonably incurred. The Dutch tax office can verify these in the employer's administration.
In the application and awarding of the 30% ruling, the employer can provide a tax-free allowance of up to 30% of the salary, including allowances, or the employer can choose to provide 30/70 of the salary excluding the allowance as a tax-free reimbursement. In this case, no evidence of the costs is required and there is no need for administration on these costs.
If the employer wishes to provide an additional reimbursement or provision for actual extraterritorial costs (in addition to the 30% ruling), this will be regarded as taxable income for the employee.
The following list provides examples of extraterritorial costs:
School expenses for the employee's children can be reimbursed tax-free in addition to the 30% facility allowance. There is no maximum amount for educational expenses, so in principle, all educational expenses can be reimbursed tax-free. However, these expenses can only be reimbursed for education at an international school or a school with an international department.
Furthermore, the following conditions must be met:
If an employee is conducting scientific research at a designated research institution or are in training to become a medical specialist, the employee can always use the 30% ruling and there is no salary threshold.
Employees working as medical specialists in training at a training institute designated by the following medical institutions are eligible:
the Medical Specialists Registration Committee, the Social Medical Registration Committee, and the General Practitioner and Nursing Home Physician Registration Committee.
The following list provides an overview of which institutions have been designated as science institutions:
Openbare universiteiten van Leiden, Groningen, Amsterdam, Utrecht, Delft, Wageningen, Eindhoven, Enschede, Rotterdam, Maastricht en Heerlen
Sbijzondere universiteiten:
Amsterdam, de Vereniging voor christelijk wetenschappelijk onderwijs
Nijmegen, de Stichting Katholieke Universiteit
Tilburg, de Stichting Katholieke Universiteit Brabant
Openbare Graduate Schools:
Hogeschool Deventer
Hogeschool Leeuwarden
Hogeschool Velp
Gemeentelijke Hogeschool Amsterdam
Speciale Graduate Schools:
Alkmaar
de Stichting voor Hoger Beroepsonderwijs Noordelijk Noord-Holland
Amsterdam
de Stichting Hogeschool Amsterdam
de Stichting voor de Protestanten Christelijke en de Rooms-Katholieke lerarenopleiding voor het Basisonderwijs in Noord-Holland
de Stichting Amsterdamse Hogeschool voor de Kunsten
de Vereniging Gerrit Rietveld Academie, Hogeschool voor Beeldende Kunst en Vormgeving
Arnhem
de Stichting hogeschool voor de Kunsten Arnhem
de Stichting Gelderse Hogescholen
Breda
de Stichting Hogescholen Westen Midden Brabant
de Stichting Hogeschool voor Toerisme en Verkeer
Delft
de Stichting Agrarische Hogeschool van het Koninklijk Nederlands Landbouwcomité
Diemen
de Stichting voor Protestanten-Christelijk en Kamers- Katholiek hoger onderwijs te Amsterdam
Doetinchem
de Stichting PABO ‘Oost-Gelderland’
Driebergen
de Stichting Akademie ‘de Horst’
Dronten
de Nederlandse Christelijke Boeren en Tuindersbond
Ede
de Stichting voor Protestanten Christelijk Hoger Beroepsonderwijs op Gereformeerde Grondslag
Eindhoven
de Hogeschool Eindhoven, de Stichting Hoger Onderwijs Zuid-Nederland
de Pedagogisch Technische Hogeschool Nederland, de St. Hoger Onderwijs Zuid-Nederland
de Stichting Katholieke Hogeschool voor Pedagogisch Onderwijs ‘Hemelrijken’voor Eindhoven en omgeving
de Stichting akademie Industriële Vormgeving
Emmen
de Stichting Hoger Onderwijs Groningen
Enschede
de Stichting Academie voor Kunst en Industrie ‘Oost-Nederland’
de Stichting Hogeschool Enschede
Gouda
de Stichting Scholengemeenschap op Reformatorische grondslag ‘De Driestar’
s-Gravenhage
de Stichting Christelijk Hoger Beroepsonderwijs ‘Rijn-Delfland’
de Stichting Haagse Hogeschool
de Stichting Horecaf Hotelschool
de Stichting Koninklijke Hogeschool van Beeldende Kunsten, Muziek en Dans
Groningen
de Stichting Hoger Onderwijs Groningen
Haarlem
de Stichting Hogeschool Haarlem
Heerlen
de Stichting Hoger Beroeps Onderwijs Limburg
Helmond
de Stichting ‘De Kempel’
Hengelo
de Stichting Katholieke Opleidingen voor Onderwijsgevenden in Noord-Oost Nederland
s-Hertogenbosch
de Stichting Hogeschool voor Beroepsonderwijs ‘s-Hertogenbosch
de Katholieke Nederlandse Boeren en Tuinders Bond
de Stichting Hoger Onderwijs Zuid-Nederland
Kampen
de Stichting Christelijke Hogeschool voor de Kunsten ‘Constantijn Huygens’
Leeuwarden
de Stichting Noordelijke Hogeschool Leeuwarden
de Stichting Christelijk Hoger (beroeps-) onderwijs in Noord-Nederland
Leiden
de Stichting Leidse Hogeschool voor Beroepsonderwijs
Maastricht
de Stichting Hogeschool Maastricht
Roermond
de Stichting Hoger Onderwijs Zuid-Nederland
Rotterdam
de Stichting Hogeschool Rotterdam e.o.
de Vereniging voor Protestants-Christelijk Onderwijs
de Stichting Hogeschool voor Economische Studies Rotterdam
The Rotterdam University of Applied Sciences Foundation
Rijswijk
De katholieke HTO Stichting in de provincie Zuid-Holland
Sittard
de Stichting Hogeschool Zuid-Nederland
Tilburg
West Central Brabant University of Applied Sciences Foundation
Stichting Hoger Onderwijs Zuid-Nederland
Utrecht
Stichting Hogeschool Utrecht
Stichting Hogeschool voor de Kunsten
Stichting Katholiek Onderwijs voor de Pabo Utrecht
Stichting Protestants Christelijke PABO Utrecht
Venlo
Stichting Hoger Onderwijs Zuid-Nederland
Vlissingen
Stichting Hogeschool Zeeland
Wageningen
Stichting Hogeschool Diedenoort
Stichting STOAS
Zeist
Stichting Vrije Pedagogische Academie
Zwolle
Stichting Christelijke Hogeschool voor de Kunsten
Stichting Reformatorische Hogeschool
Stichting Katholiek Onderwijs voor de Pabo
Academische Ziekenhuizen bij de Openbare Universiteiten in Leiden, Groningen, Amsterdam, Utrecht, Rotterdam en Maastricht.
Academische Ziekenhuizen bij de Bijzondere Universiteiten in Amsterdam en Nijmegen.
bron: Minister van Justitie, 16 april 1996
The employer and employee can file a joint request for the 30%-ruling. When the 30%-ruling is granted, the incoming employee will exchange a maximum of 30% of their original wage for a tax-free allowance. The originally agreed wage will be reduced with the tax-free allowance of maximum 30%. The employer and employee must agree with this reduction (according to labor law) in a contract. This is possible, for example, in a supplement to the employment contract. If you need a template of an addendum for the 30% ruling, please contact us.
Previous stay in the Netherlands may be deducted from the maximum duration of the 30% ruling. It depends on the duration and purpose of your previous stay.
Article 10ef (Dutch wage tax law)
1. If the incoming employee is or has been employed in the Netherlands prior to the commencement of his/her employment at the Dutch employer, the duration of the 30% ruling will be reduced by the periods of previous employment and previous stay.
2. Periods of previous employment and previous residence that have ended more than twenty-five years prior to employment shall not be taken into account.
3. To apply the first and second paragraphs, the incoming employee is not employed in the Netherlands if he has worked in the Netherlands for a maximum of 20 days in each.
4. To apply the first and second paragraphs, the incoming employee did not reside in the Netherlands if he stayed in the Netherlands for not more than six weeks in any calendar year of the twenty-five year period due to holidays, family visits or other personal circumstances. in which, during the period of twenty-five years, a one-off period of no more than three consecutive months in the Netherlands due to holidays, family visits or other personal circumstances is not taken into account.
5. To apply the first and second paragraphs, an employee shall be deemed to have been employed in the Netherlands during the entire period that he has recruited by a withholding agent from another country.
The 30%-ruling can only be applied on taxable wage in the Dutch payroll. Remote working for a Dutch employer in a different country can have tax and social security consequences for both employee and employer.
Garden leave (dismissal/suspension/inactivity)
Garden leave describes the practice whereby an employee who is leaving a job (having resigned or otherwise had his or her employment terminated) is instructed to stay away from work during the notice period, while still remaining on the payroll.
If an employee is suspended, or is exempt from work until the end of his employment, but is keeping his salary, the 30% facility for this employee may no longer be used during the period of inactivity.
The 30% ruling ends directly as of the first day of the garden leave. It does not matter that the official employment contract has not ended yet.
The employee will in principle lose the entitlement of the 30% ruling as of the first day of the garden leave. However, if the employee finds a new job within 3 months, the new employer and employee can request for a new 30% ruling for the remaining duration (if the employee still meets all conditions).
NUFFIC evaluation of your master diploma
The minimum annual taxable salary level should be met for the duration of the 30% ruling. For 2023 the minimum salary level is EUR 41.954 (after 30% ruling calculation). This amount will change each year and every year the taxable salary should be at least this amount. A reduced salary level (for 2023: 31.891 after 30% ruling calculation) could be applicable when you are younger than 30 and hold a master degree. As soon as you become 30, the normal salary level needs to be met for the further duration of the 30% ruling.
With regards to the reduced salary level, if the master diploma have been issued outside the Netherlands then the Dutch tax authorities could request for an additional evaluation of the diploma to make sure the degree is equal (or higher) to a master degree in the Netherlands. The evaluation needs to be done by NUFFIC. For more information we refer to the following website: https://idw.nl/en/credential-evaluation.html.
